RRSP Withholding Taxes

Financial institutions are required to withhold taxes on all cash withdrawals from an RRSP.
Alberta
Taxable income (maximum value $1,000,000)
75,000
Info
Taxable Income

Enter the taxable income amount from line 260 of your personal income tax return.
Amount withdrawn from RRSP (maximum value $100,000)
10,000


If you withdraw $10,000, you will only actually receive $8,000 because $2,000 in taxes will be withheld.

Net Withdrawal Amount
Total amount withdrawn from RRSP$10,000
Less tax withheld at 20%$2,000
Equals net withdrawal$8,000

Since you must report this withdrawal as income when you file your income tax return, you will

Additional Taxes Owing
Tax on of income (including the withdrawal)A$18,282
Tax on of income without the withdrawalB$15,204
Tax on withdrawalA-B$3,078
Less taxes already withheld$2,000
Equals tax owing$1,078


RRSP Withholding Tax Rates
The withholding tax varies depending on the amount withdrawn and your province of residence.
Outside
Withdrawal AmountQuebecQuebec
Up to $5,00010.00%20.00%
$5,001 to $15,00020.00%25.00%
$15,001 & over30.00%30.00%

 
PDF

Assumptions
Calculations use marginal tax rates as of January 2019. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.

Disclaimer