Impact of RRSP contribution on your income tax refund

Views: 442 RRSP (Registered Retirement Savings Plan) is a tax-advantaged investment vehicle that can help Canadians save for retirement. It allows you to contribute pre-tax income, which reduces your taxable income for the year and can result in a lower tax bill. The funds within the RRSP grow tax-free until withdrawal, at which point they are taxed as income. In this table, we will explore how contributing $10,000 to an RRSP can impact a family earning $100,000 in each province in 2024. ProvinceCombined Tax RateTax Savings from $10,000 RRSP ContributionAlberta30.5%$3,050British Columbia31.0%$3,100Manitoba33.25%$3,325New Brunswick34.3%$3,430Newfoundland and Labrador34.6%$3,460Northwest Territories32.7%$3,270Nova Scotia33.0%$3,300Nunavut31.0%$3,100Ontario31.48%$3,148Prince Edward Island36.0%$3,600Quebec33.12%$3,312 As you …

Impact of RRSP contribution on your income tax refundRead More »