Why contributions create a refund
RRSP and FHSA contributions are deductions: they come off the top of your income before tax is worked out. Because they come off the top, each dollar saves tax at your marginal rate — the rate on your last dollar of income — not your average rate.
Refund = income tax before the deduction − income tax after the deduction. If your employer already withheld tax on your full pay, that difference comes back to you when you file.
What this calculator shows
Choose Ontario or BC, enter your gross employment income, and the RRSP and FHSA amounts you plan to contribute. The calculator works the tax out through the 2026 federal and provincial brackets, including the basic personal amount, the Canada employment amount and CPP and EI credits, and shows the estimated refund. If you enter the tax already withheld from your pay, it shows whether you can expect a refund or a balance owing.
TFSA, RESP and RDSP contributions do not reduce taxable income, so they don't create a refund and aren't included. Investment income, self-employment and other credits aren't modelled — your filed return is the authority.
The 2026 limits
RRSP: 18 % of last year's earned income, up to $33,810, plus unused room. FHSA: $8,000 a year and $40,000 lifetime, with up to $8,000 of unused room carried forward. A refund is most useful when it goes back to work — into a TFSA, an RESP, or paying down debt.
Brackets and timing
At a 30 % marginal rate, a $5,000 RRSP contribution saves about $1,500 of tax. If a large contribution drops your income into a lower bracket, the part below the line saves tax at the lower rate — which is why the calculator works through the brackets instead of multiplying by one rate.
RRSP contributions made in the first 60 days of a year can be deducted on the previous year's return; FHSA contributions count for the calendar year they are made in. You can also carry either deduction forward to a later year, when your income — and your marginal rate — may be higher.
Common questions
How much refund will a $1,000 RRSP contribution give me?
About $1,000 × your marginal tax rate. At a 30 % marginal rate that is about $300. The calculator works out your real marginal rate for Ontario or BC.
Do FHSA contributions give a tax refund?
Yes. FHSA contributions are deductible like RRSP contributions, up to $8,000 a year. Unlike an RRSP, a qualifying withdrawal for a first home is also tax-free.
Which provinces does it cover?
Ontario and British Columbia. We don't show a figure for other provinces until their brackets and credits are modelled.