Withholding Tax on RRSP and RRIF Withdrawals
Retenue d'impôt sur les retraits de REER et de FERR in French
Quick definition
Withholding tax on RRSP and RRIF withdrawals is income tax your financial institution deducts at source and sends to the CRA when you take money out. One rate, set by the size of the withdrawal, applies to the whole amount. It is a prepayment, not your final tax, and RRIF minimum payments are exempt.
The withholding rates
When you withdraw from an RRSP, or take more than the minimum from a RRIF, your financial institution withholds tax before paying you. Outside Québec, the rate is 10% on amounts up to $5,000, 20% on amounts over $5,000 up to $15,000, and 30% on amounts over $15,000 (as of October 2026).
In Québec, federal withholding is lower, 5%, 10% and 15% on the same tiers, because Québec collects its own provincial tax: Québec adds 14% provincial withholding on top, for a combined 19%, 24% or 29%.
| Amount withdrawn | Outside Québec | Québec (federal plus Québec) |
|---|---|---|
| Up to $5,000 | 10% | 5% + 14% = 19% |
| Over $5,000 up to $15,000 | 20% | 10% + 14% = 24% |
| Over $15,000 | 30% | 15% + 14% = 29% |
One rate for the whole amount, not tax brackets
These tiers do not work like tax brackets. The size of the whole withdrawal picks one rate, and that rate applies to all of it. A withdrawal of $8,000 has 20% withheld on the full $8,000, not 10% on the first $5,000 and 20% on the rest.
- $4,000 withdrawn: 10%, so $400 withheld.
- $8,000 withdrawn: 20%, so $1,600 withheld.
- $20,000 withdrawn: 30%, so $6,000 withheld.
- $20,000 withdrawn in Québec: 15% federal plus 14% Québec, so $3,000 plus $2,800, or $5,800 withheld.
Splitting a request does not lower the rate
Asking for $20,000 as four payments of $5,000 does not turn a 30% rate into 10%. When several payments are part of one request, the CRA looks at the total requested, and the rate is set by that total. And even when smaller withdrawals do get a lower rate, the final tax does not change: it is settled when you file.
RRSP versus RRIF
From an RRSP, the whole withdrawal is subject to withholding. The exceptions are the special programs, such as Home Buyers' Plan and Lifelong Learning Plan withdrawals, which are not taxed when made.
From a RRIF, nothing is withheld up to the year's RRIF minimum withdrawal. Only the excess above the minimum is withheld, at the rate for the size of that excess. For example, with a minimum of $12,500 and a $20,000 withdrawal, the excess is $7,500, which falls in the over $5,000 up to $15,000 tier: 20% of $7,500, or $1,500, is withheld outside Québec.
Withholding is not your final tax
Every dollar you withdraw is added to your income for the year and taxed at your marginal tax rate. Withholding is only a prepayment toward that tax. When you file, the amount withheld is credited against your bill: if your real rate is lower than the withholding, you get a refund; if it is higher, you have a balance owing.
RRIF minimum payments are the usual source of surprises: nothing is withheld, but they are fully taxable. You can ask your financial institution to withhold more than the required amount, on the minimum or on any withdrawal, so you are not caught with a large balance at filing time. Large balances owing can also lead the CRA to ask for quarterly instalments.
In Canada
Withdrawals are reported on a T4RSP slip for an RRSP and a T4RIF slip for a RRIF, with the tax withheld shown on the slip, and Québec residents also receive an RL-2 slip. The rates above apply to residents of Canada. Non-residents face a different regime: a flat 25% non-resident tax (as of October 2026), which a tax treaty may reduce for periodic pension payments.
Worked example
Gilles, 72, lives in Ontario. His RRIF minimum for 2026 is $12,500, and in June he withdraws $20,000 for a new car, the first money he takes out that year. The first $12,500 covers his minimum and has nothing withheld. The $7,500 excess faces 20% withholding, so $1,500 goes to the CRA and he receives $18,500.
At tax time, suppose his marginal rate is about 30% (illustrative). The $20,000 adds about $6,000 to his tax. With $1,500 already withheld, roughly $4,500 is still due when he files, unless withholding on his other income covers it. His sister Hélène, 64, in Québec, withdraws $20,000 from her RRSP instead: 15% federal plus 14% Québec, so $5,800 is withheld and she receives $14,200.
Related terms
Reviewed by Alexandre Bernier, CFP®, CIM®, PFP®·Updated October 2026