RRSP and TFSA Limits for 2026: What GTA Owners Should Do Before Year-End
If you live or run a company in the GTA, two CRA numbers matter before year-end: the 2026 RRSP dollar limit of $33,810 and the 2026 TFSA dollar limit of $7,000. Used in the right order, they cut tax this year and protect cash you may need next year.
This is general information for Ontario owners, not a filing instruction. Confirm your own room in CRA My Account and with a licensed advisor before you contribute.
2026 RRSP room, in plain language
New RRSP room for 2026 is the lesser of $33,810 and 18% of your 2025 earned income, plus unused room you carried forward, minus any pension adjustment from an employer plan. Contributions after the early-March deadline apply to the 2026 return, not 2025.
An RRSP deduction lowers taxable income now. That is useful if this year's personal rate is high — for example after a large bonus, a profitable sole proprietorship year, or a dividend-heavy draw. It is less useful if you expect a higher rate later and need the cash sooner.
2026 TFSA room, in plain language
The 2026 TFSA dollar limit is $7,000. That amount is added on January 1, plus unused room from prior years. Withdrawals made in 2026 do not restore room until January 1, 2027. Growth and withdrawals are not taxable, and they do not create an RRSP-style deduction.
TFSAs are usually the better parking spot for an emergency reserve, a near-term equipment purchase, or money you may pull back into the company. Over-contributing still attracts CRA penalty tax. Check issuer records as well as My Account.
A simple order of operations for incorporated owners
1. Know the cash. Do not fund an RRSP if it starves payroll, GST/HST, or supplier payments.
2. Confirm room. Use CRA My Account for RRSP deduction limit and TFSA room before you write the cheque.
3. Decide the personal rate question. High personal income this year often favours an RRSP. Lower income or a short cash horizon often favours a TFSA.
4. Watch owner draws. Salary creates earned income and RRSP room. Dividends do not. Mixing the two without a plan is how owners over-contribute personally and under-fund the corporation.
5. File the receipts. Keep contribution slips with the books. Your T4/T5 and corporate statements should tell the same story.
What this is not
This post is not investment advice and not a substitute for a T2, T1, or payroll review. Limits change. Your room is personal. Jason Rich & Associates will map RRSP, TFSA, and owner-draw choices against your actual statements in a discovery session.
Book a discovery session: richassociates.ca/book-online or call +1 289-384-9881.
Sources for the 2026 dollar limits: Canada Revenue Agency registered-plan limit tables (RRSP $33,810; TFSA $7,000).
