The numbers, step by step
- Your room: 18% of your 2025 earned income of $75,000 is $13,500. That is well under the $33,810 cap, so you have $13,500 of room (assuming no pension adjustment). $5,000 fits easily.
- Your marginal rate: at $75,000 in Ontario, your top dollars are taxed at 20.5% federal + 9.15% Ontario = 29.65%.
- The deduction: $5,000 comes off the top of your income, taking it from $75,000 to $70,000. All of that is still in the same brackets.
- The refund: $5,000 × 29.65% = $1,482 — about $1,025 federal and $458 Ontario.
So the real cost of your $5,000 contribution is about $3,518, and the whole $5,000 grows tax-sheltered.
The same $5,000 in each province ($75,000 income)
| Province / territory | Refund | Rate |
|---|---|---|
| Ontario | $1,482 | 29.65% |
| British Columbia | $1,410 | 28.20% |
| Alberta | $1,525 | 30.50% |
| Quebec | $1,806 | 36.12% |
| Manitoba | $1,662 | 33.25% |
| Saskatchewan | $1,650 | 33.00% |
| Nova Scotia | $1,858 | 37.17% |
| New Brunswick | $1,725 | 34.50% |
| Newfoundland and Labrador | $1,750 | 35.00% |
| Prince Edward Island | $1,855 | 37.10% |
| Yukon | $1,475 | 29.50% |
| Northwest Territories | $1,455 | 29.10% |
| Nunavut | $1,375 | 27.50% |
Same method as the calculator: federal and provincial tax with and without the deduction (basic personal amounts and the Ontario surtax included).
Other contribution sizes (Ontario, $75,000)
| Contribution | Refund | Average rate |
|---|---|---|
| $1,000 | $296 | 29.6% |
| $2,500 | $741 | 29.6% |
| $5,000 | $1,482 | 29.6% |
| $10,000 | $2,965 | 29.6% |
| $13,500 | $4,003 | 29.6% |
Bigger contributions eventually drop part of your income into a lower bracket (below $58,523 federally and $53,891 in Ontario), so the average rate starts to dip.
“Refund” — a gentle reality check
The RRSP saves you tax; whether it arrives as a cheque depends on how much tax your employer already took off your pay. If your withholding was about right, the saving shows up as a refund in spring 2027. If you contribute regularly, you can ask CRA (form T1213) to reduce the tax taken off each paycheque instead.
A tip that many people like
Put the refund back into your RRSP or TFSA. Your $5,000 contribution then really works like about $6,500 of savings.
RRSP or TFSA?
Both are good homes for savings. The RRSP gives you a refund now, and you pay tax when you withdraw in retirement. A TFSA gives no refund, but withdrawals are tax-free. As a rough guide, an RRSP tends to win when your tax rate today (29.65% in this example) is higher than the rate you expect in retirement. If you expect a similar or higher income later, a TFSA may suit you better. Many people use both — for example, putting this year’s refund into a TFSA.
FAQ
How much will I get back on a $5,000 RRSP contribution?
In Ontario with $75,000 of income, about $1,482 for 2026 — your marginal rate of 29.65% times $5,000.
How much is the refund on $5,000 in Alberta at $75,000?
About $1,525 (20.5% federal + 10% Alberta).
What does a $10,000 contribution give back in Ontario at $75,000?
About $2,965. The last part of the deduction falls into the lower Ontario bracket, so the average rate is a little lower.
Sources: CRA “Tax rates and income brackets for individuals – 2026” (canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html, modified 25 June 2026); CRA MP, DB, RRSP, DPSP, ALDA, TFSA limits; Government of B.C. personal income tax rates (5.6% lowest rate for 2026); Manitoba Budget 2026 (EY tax alert 25 Mar 2026, indexation paused); KPMG and Manulife 2026 tax tables; provincial basic personal amounts from the 2026 TD1 indexation figures. Checked 5 November 2026.