RRSP Withholding Rates

RRSP Withholding Taxes

RRSP's, also known as Registered Retirement Savings Plans, are a great way to reduce taxes in your higher income tax years and allocate that income in the lower tax years.

Ideally people will contribute when they are in a higher tax bracket than when they decide to withdraw from their RRSP's.

Withdrawing from an RRSP may happen for many reasons. When you decide to withdraw from an RRSP there will be withholding taxes.

When you withdraw funds from an RRSP, your financial institution withholds the tax. The rates depend on your residency and the amount you withdraw. For residents of Canada, the rates are:

  • 10% (5% in Quebec) on amounts up to $5,000
  • 20% (10% in Quebec) on amounts over $5,000 up to including $15,000
  • 30% (15% in Quebec) on amounts over $15,000

*Figures were last updated 2021-08-19

For funds held in the province of Quebec, there will also be provincial tax withheld. For more information on Quebec withholding, contact your financial institution or Revenu Qu├ębec.

Please note that everyone's financial circumstances are different and decisions should be made based on your personal finances. This is not to be construed as financial, tax or legal advice and is for educational purposes only. You are advised to seek consult of a qualified professional prior to making any decisions.

    • Related Articles

    • Spousal RRSP Attribution Rules

      Spousal RRSP's are a great way to equalize retirement assets when one person has a significantly higher income level. If a spouse or common-law partner contributed to your spousal RRSP in the current or preceding two tax years then they may have to ...
    • Should I take CPP Early or Late? Canada Pension Plan payments

      Are you thinking about taking your CPP, Canada Pension Plan, early or deferring it past 65? There is a large difference between taking the pension at 60 versus 70. Many of our clients say that they may not live that long and would rather take the ...
    • First Time Home Buyers' Plan (RRSP)

      Finding a down payment for your first home may be challenging. The government has come up with a plan that helps encourage people to save through their RRSP's while also allowing them to use the funds for a down payment. You're encouraged to save and ...
    • Donating Shares to a Charity

      We received questions about donating shares to a charity many times. When someone is looking to make an impact on a charity and they want to do so by donating financial assets then there are some questions that come into play. The first questions is ...