What is the RRSP contribution limit for the 2024 tax year?

For the 2024 tax year, the maximum RRSP contribution limit is C$31,560. However, your personal limit depends on your earned income from the previous year and any unused contribution room carried forward.

How your RRSP limit is calculated:

Your RRSP deduction limit for 2024 is the lesser of:

• 18% of your 2023 earned income, or
• C$31,560 (the 2024 annual maximum)

...minus any pension adjustment (PA) from a workplace pension plan, plus any unused RRSP room carried forward from previous years.

Key facts about RRSP contributions:

• Deadline: Contributions for the 2024 tax year must be made by March 3, 2025 (60 days after year-end) to be deductible on your 2024 return.
• Unused room: Any contribution room you do not use carries forward indefinitely. Check your Notice of Assessment or My Account on the CRA website to see your available room.
• Over-contributions: You are allowed a lifetime over-contribution cushion of C$2,000 without penalty. Amounts over that are subject to a 1% per month penalty tax.
• Earned income includes: Employment income, net self-employment income, rental income, alimony or maintenance received, and certain other amounts.

Tax benefits of RRSPs:

• Contributions are tax-deductible, reducing your taxable income for the year.
• Investment growth inside the RRSP is tax-deferred until withdrawal.
• Withdrawals are taxed as regular income, ideally in retirement when your tax rate may be lower.

Tip: You do not have to deduct your RRSP contribution in the year you make it. You can carry the deduction forward to a year when you are in a higher tax bracket.