The 2026 RRSP dollar limit rose from $32,490 to $33,810, a 4.1% increase. The 18% of earned income formula and the pension adjustment mechanism are unchanged. The $2,000 lifetime over-contribution cushion is unchanged.
Changes at a glance
| Item | 2025 | 2026 |
|---|---|---|
| Annual RRSP dollar limit | $32,490 | $33,810 |
| Earned income required for full room | $180,500 | $187,833 |
| 18% of earned income formula | (unchanged) | (unchanged) |
| Pension adjustment treatment | (unchanged) | (unchanged) |
| Over-contribution cushion | $2,000 lifetime | $2,000 lifetime |
| HBP withdrawal limit | $60,000 | $60,000 |
| FHSA annual / lifetime limit | $8,000 / $40,000 | $8,000 / $40,000 |
How indexation works
The RRSP dollar limit is indexed annually to changes in the average industrial wage in Canada. Most years see modest increases. The cap on RRSP contribution applies to taxpayers with earned income above the threshold required to generate the full dollar limit at the 18% rate. For 2026, that threshold is $187,833 ($33,810 / 0.18).
What did not change for related plans
The Home Buyers’ Plan (HBP) withdrawal limit remains $60,000 per person. The First Home Savings Account (FHSA) limits remain $8,000 annually and $40,000 lifetime. Spousal RRSP attribution rules (the three-year rule) are unchanged.
Related Canadian Money Help content
- Reference article: How RRSP Contribution Room Is Calculated (2026)
- Reference article: What Counts as Earned Income for RRSP Purposes
- Calculator: RRSP vs TFSA Calculator