See how much tax your institution withholds on a lump-sum RRSP or RRIF withdrawal and how much cash reaches your bank account.
When you take money out of an RRSP (or more than the minimum out of a RRIF), the financial institution must withhold tax at source and send it to the CRA. Outside Quebec the lump-sum rates are 10% on amounts up to $5,000, 20% on $5,000.01 to $15,000 and 30% above $15,000. For Quebec residents the federal portion is 5%, 10% and 15% and Revenu Québec adds its own withholding (14% in 2026 according to published institution tables), for totals of about 19%, 24% and 29%. Non-residents generally face 25% under Part XIII, possibly reduced by a tax treaty.
How to use it: enter the gross amount of one withdrawal, pick the rate for that band, and add any fee your institution charges (many charge none; fee figures here are illustrative). The calculator returns the amount withheld and the cash you receive.
Worked example: a $12,000 withdrawal in Ontario falls in the 20% band, so $2,400 is withheld and $9,600 arrives. The full $12,000 is still added to your income for the year. If your marginal rate is 31.48%, the real tax is about $3,778, so you would owe roughly $1,378 more when you file.
Limits: withholding is a prepayment, not the final tax. Splitting a withdrawal into several small ones lowers the withholding but not the tax owed at filing. Minimum RRIF payments have no withholding at all. HBP and LLP withdrawals made with the right forms are not subject to withholding. See the withholding guide for the details.
Pitfalls, Protection and Official Sources
What happens to your RRSP, RRIF, TFSA and FHSA when you leave Canada: the 1% a month tax on TFSA contributions, 25% withholding on RRSP withdrawals, foreign tax and returning later.
Worked Scenarios and Checklists
How much tax is withheld when you cash out RRSP money in 2026, the Quebec rates, why splitting withdrawals does not save tax, the balance owing at filing and when no tax is withheld.
Worked Scenarios and Checklists
How a spousal or common-law partner RRSP works in 2026, whose room it uses, the three-year attribution rule worked out, exceptions, December timing and use after 71.
