RRSP limit for 2027 is $35,390: what it means for you
📘 Related guide: RRSP vs TFSA: which one first? (2026 guide)
The Canada Revenue Agency (CRA) now lists the RRSP limit for 2027 at $35,390. An RRSP (Registered Retirement Savings Plan) is an account for retirement savings. What you put in can lower the income tax you pay now.
What happened
The CRA table of yearly limits shows the RRSP dollar limit going up: $32,490 for 2025, $33,810 for 2026 and $35,390 for 2027. That is $1,580 more than in 2026. The same table does not list a 2027 limit for the TFSA (Tax-Free Savings Account) yet. For 2025 and 2026 the TFSA limit is $7,000.
Important: $35,390 is a ceiling, not your personal number. Your own room depends on your income.
How it affects you
The CRA explains that each year your RRSP room grows by the smaller of two amounts: 18% of your earned income from the year before, or the yearly dollar limit. Then it subtracts your pension adjustment, which is the value of a pension you build at work. Room you do not use carries forward to later years.
Example (made-up numbers to illustrate): Ana earned $60,000 in 2026 and has no workplace pension.
- 18% of $60,000 = $10,800 of new room for 2027.
- That is far below the $35,390 cap, so the cap does not limit her.
- Say she contributes $5,000, and her tax rate on her last dollars of income is 25% (an assumption; yours may be different). The deduction cuts her tax by about $1,250 ($5,000 × 0.25).
Now picture someone who earned $200,000 in 2026. 18% of that is $36,000, which is more than the cap, so the cap of $35,390 applies. By this math, you would need about $196,700 of earned income to reach the full amount ($35,390 ÷ 0.18).
What you can do
- Find your own deduction limit. It is on your latest notice of assessment and in your CRA My Account. Do not use the cap as your number.
- Check how much you have already put in, so you know how much room is left.
- Mark the deadline. For the 2025 tax return, contributions made up to March 2, 2026 counted. Each year's deadline falls early in the following year, so confirm the exact date on the CRA site.
- Think about where an RRSP fits in your monthly budget before you commit money. A tax professional can help with your case.
What to keep in mind
- Going over has a cost. The CRA says a tax of 1% per month applies to the part of an excess that is more than $2,000 above your limit.
- A deduction lowers your tax, but the amount depends on your income and tax bracket. The $1,250 in the example is only an illustration.
- The TFSA figure for 2027 had not been listed when these CRA pages were read (October 2026).
- This article is general information, not tax or investment advice.
Sources
- Canada Revenue Agency: MP, DB, RRSP, DPSP, TFSA limits and the YMPE
- Canada Revenue Agency: How contributions affect your RRSP deduction limit
What did you think?
Anonymous: no account, nothing personal is stored.
Information checked against the sources listed above on October 15, 2026. Educational information, not financial, tax or legal advice.
Related guides
RRSP vs TFSA: which one first? (2026 guide)RRSP or TFSA first? Compare tax treatment, 2026 limits ($33,810 and $7,000), withdrawals and when each account makes more sense in Canada.Your first tax return in Canada: step by stepHow to file your first Canadian tax return: who must file, key dates (April 30), documents to gather, free options, newcomer rules and late penalties.TFSA, RRSP and FHSA limits for 20262026 contribution limits in Canada: TFSA $7,000, RRSP $33,810 (18% of earned income) and FHSA $8,000 a year. How your room works and key dates.Kuentaly reads your bank alerts, organizes your cards and shows your registered accounts. Free to use during the beta.
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