--- title: "RRSP limit 2027: $35,390 and how to reach it | EverStone CPA" url: https://www.everstonecpa.com/tax-update/rrsp-limit-2027 description: "The RRSP limit 2027 is $35,390, up from $33,810 for 2026. Find the 2026 salary it takes to reach it and why dividends add no room. See the figures." type: tax-update updated: 2026-10-24 summary: "The RRSP limit for 2027 is $35,390, up from $33,810 for 2026. Your own 2027 room is 18% of your 2026 earned income up to that cap, so reaching the maximum takes about $196,612 of salary in 2026 — and for an incorporated owner, dividends create no RRSP room at all." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Tax updates](https://www.everstonecpa.com/tax-updates) RRSP limit 2027 Personal tax # RRSP limit 2027 — $35,390, and the 2026 salary it takes to earn it By EverStone CPA · Updated 24 October 2026 The registered plan figures behind the 2027 limit, in one view. **Quick answer:** The RRSP limit for 2027 is $35,390, up from $33,810 for 2026. Your own 2027 room is 18% of your 2026 earned income up to that cap, so reaching the maximum takes about $196,612 of salary in 2026 — and for an incorporated owner, dividends create no RRSP room at all. **In force** · 2027 contribution year This figure is published by the CRA and applies to 2027 RRSP room. ## The RRSP limit for 2027 and 2026 The RRSP limit for 2027 and 2026 | Figure | Amount | | **RRSP dollar limit, 2027** | **$35,390** — already published | | RRSP dollar limit, 2026 | $33,810 | | Money purchase (MP) limit, 2026 | $35,390 | | Increase in the RRSP dollar limit, 2026 to 2027 | $1,580 | | Money purchase (MP) limit, 2027 | Not yet published by the CRA | The RRSP contribution limit for 2027 is **$35,390**. That is the ceiling on new room anyone can earn for 2027, whatever their income. The 2026 figure, for comparison, is **$33,810**. The CRA has not published the 2027 money purchase limit, which sets the 2028 RRSP limit; it usually appears in November. The 2026 MP limit of $35,390 is the latest and fixes the 2027 RRSP limit. ## Why the 2027 figure is already known Most annual tax figures are announced late in the year before they apply. The 2027 RRSP limit is different, and the reason is structural rather than a matter of timing. Each year’s RRSP dollar limit equals the **previous year’s money purchase limit**, the cap on defined contribution pension contributions. So the 2027 limit is **$35,390**. The same thing happened a year earlier. The 2026 RRSP limit of $33,810 is the 2025 money purchase limit. Because the RRSP figure runs a year behind by design, you can plan next year’s RRSP around a number that is already known. ## How your own 2027 RRSP room is worked out RRSP room is not a flat allowance. For any year it is **18% of the previous year’s earned income**, capped at that year’s RRSP dollar limit, then adjusted for any pension adjustment and carried-forward room. Applied to 2027, that means: - Take **18% of your 2026 earned income**. - Cap the result at the 2027 RRSP dollar limit of **$35,390**. - Adjust for any **pension adjustment** if you belong to a registered pension plan. - Add any **unused room** carried forward from earlier years. The phrase doing the work is **earned income**. Salary and wages count. Net [rental income](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html) and some other sources count. **Dividends do not.** Neither do capital gains. Your own limit is on your notice of assessment. The $35,390 figure is the cap that applies to everyone; your notice shows where you personally stand against it once your 2026 return has been assessed. **Want a CPA to do your return?** Personal returns are quoted as a fixed fee before we start. See [our personal tax service](https://www.everstonecpa.com/personal-taxes), or [get a personal tax quote](https://www.everstonecpa.com/book-online?service=personal#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=personal#enquiry-form) ## The 2026 earned income it takes to reach the 2027 maximum Because 2027 room is built from 2026 income, the year that decides your 2027 RRSP is the one now ending. Calculation steps | Step | Detail | | The 2027 RRSP dollar limit | $35,390 | | Room accrues at | 18% of the previous year’s earned income | | So the 2026 earned income needed | $35,390 18% = $196,611.11, rounded up to **$196,612** | | Earned income of $100,000 instead | $18,000 of room | | Paid entirely in dividends | $0 of room | About **$196,612** of 2026 earned income fully funds the 2027 limit, versus about $187,833 of 2025 income for 2026. Below that, room is 18% of earnings, using only CRA figures. ## Who this matters to Anyone with RRSP room can use the figure, but the decision only becomes live for owner-managers, who choose how they are paid. Dividends-only in 2026 adds no 2027 room. Salary adds 18% of salary up to $35,390. A very profitable corporation paying only dividends creates zero room. It is one input: salary brings CPP on both sides, so RRSP room argues for considering salary, not choosing it outright. Our [guide to RRSPs and dividends for business owners](https://www.everstonecpa.com/blog/rrsp-vs-dividends-business-owner-canada) and the [salary vs dividends calculator](https://www.everstonecpa.com/salary-vs-dividends-calculator) run the numbers. Pension plan members get less than 18% because of the pension adjustment. Past under-contributors may have more than $35,390 for 2027 through carry-forward. ## What to do before the end of 2026 Decide it at compensation time. RRSP room for 2027 is fixed by what you earn in 2026 — nothing done at the contribution deadline changes the limit itself. If you are paid in dividends and want 2027 RRSP room, that is a reason to revisit the salary-versus-dividend split before the 2026 year end, not after. Our [salary vs dividends guide for 2026](https://www.everstonecpa.com/blog/salary-vs-dividends-2026) sets out the other factors that belong in that decision. Unused room carries forward indefinitely, so a low-salary year is not lost. It is deferred. **The practical point.** Set 2026 pay with 2027 RRSP room in mind; the RRSP deadline is too late. Dividends create no room, however profitable the year. For this year’s figure and the 2025 income it was built from, see [the 2026 RRSP dollar limit](https://www.everstonecpa.com/tax-update/rrsp-dollar-limit-2026). Using your limit well is part of [personal tax planning each spring](https://www.everstonecpa.com/personal-taxes). ## The terms used on this page RRSP dollar limit The maximum RRSP room that can accrue for a year, whatever the income. Set to the previous year’s money purchase limit, which is why the 2027 figure is already known. Earned income The income RRSP room is calculated from — salary and wages count, dividends and capital gains do not. Money purchase (MP) limit The annual cap on contributions to a defined contribution pension plan. The RRSP dollar limit follows it a year later. Pension adjustment A reduction to RRSP room reflecting benefits already earned in a registered pension plan. Carry-forward room Unused RRSP room from earlier years, which accumulates indefinitely. ## Common questions about the RRSP limit 2027 **What is the RRSP limit for 2027?** The RRSP dollar limit for 2027 is $35,390. Your own 2027 limit is 18% of your 2026 earned income up to that cap, adjusted for any pension adjustment and increased by unused room carried forward. **Is the RRSP contribution limit for 2027 the same as my limit?** Not necessarily. $35,390 is the most new room for 2027. Yours is 18% of 2026 earned income up to that cap, less any pension adjustment, plus unused room — lower or higher. **Why is the 2027 RRSP limit already published?** Because the RRSP dollar limit is set to the previous year’s money purchase limit. The 2026 money purchase limit is $35,390, so the 2027 RRSP dollar limit is $35,390 and is known a year ahead. **How much do I need to earn in 2026 to max out my 2027 RRSP?** About $196,612 of earned income in 2026 — $35,390 divided by 18%, rounded up to the dollar. Below that, your new 2027 room is simply 18% of what you earned. **Do dividends create RRSP room for 2027?** No. Dividends are not earned income for this purpose, so an owner paid entirely in dividends in 2026 generates no new RRSP room for 2027, regardless of how profitable the corporation was. Salary does create room. **How much higher is the 2027 limit than 2026?** The 2026 RRSP dollar limit is $33,810 and the 2027 limit is $35,390, an increase of $1,580. **What happens to room I do not use?** It carries forward indefinitely. A year with little or no salary defers the room rather than losing it. ## Where this comes from Every figure on this page is taken from the source below, or calculated from it as shown: - [CRA — MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE](https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html) **General information, not tax advice.** This page explains a published figure in general terms. It cannot account for your circumstances and does not create a professional relationship. Confirm anything that affects a decision — [send an enquiry](https://www.everstonecpa.com/book-online?service=personal#enquiry-form). [RRSP dollar limit 2026 — $33,810](https://www.everstonecpa.com/tax-update/rrsp-dollar-limit-2026) [RRSPs and dividends for business owners](https://www.everstonecpa.com/blog/rrsp-vs-dividends-business-owner-canada) [Salary vs dividends calculator Compare the two ways of paying yourself.](https://www.everstonecpa.com/salary-vs-dividends-calculator) [The 2026 TFSA contribution limit is $7,000](https://www.everstonecpa.com/tax-update/tfsa-limit-2026) [All tax updates](https://www.everstonecpa.com/tax-updates) [Tax brackets 2026: the federal and BC bands](https://www.everstonecpa.com/tax-update/tax-brackets-2026) [Send an enquiry](https://www.everstonecpa.com/book-online?service=personal#enquiry-form) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. A 45-minute **Advice Call** with a CPA is $225 plus GST, paid by secure link and credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=personal#enquiry-form). The limit is only useful next to the rest of the picture, which is [personal tax planning for the year](https://www.everstonecpa.com/personal-tax-accountant-abbotsford). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.” Heather Powers · Google review --- Source: https://www.everstonecpa.com/tax-update/rrsp-limit-2027 Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online