How much income tax will I have to pay?

When you take money out of your RRSP, the financial institution that administers your account is required to deduct a portion of your withdrawal, called a withholding tax, and send it to the Canada Revenue Agency. Also,next spring, when you file your annual income tax return you may be required to pay additional taxes at that time. So the actual amount of money you get to keep may actually a lot smaller than you think.

You can use our RRSP Withdrawal Income Tax Estimator to estimate the total income taxes you’ll pay on your RRSP Withdrawal and what you’ll end up with in your pocket.

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