Maximize your tax refund. That’s the goal, particularly if you’re contributing to RRSPs before the fast-approaching March 1 deadline. But you have to strike the optimal balance between your planned contribution and your tax rate.
(Ugh. Math. That’s complicated!)
Here’s something to make it easier: the Canadian Tax Calculator!
With the RRSP contribution deadline being March 1st, we thought you might find this tool useful. It shows you how much you’ll be paying both in federal and provincial taxes.
- Select your province
- Type in your annual income (before taxes)
- Plug in your yearly RRSP contributions in the tax deductions section
- All done! Now you can instantly see how much tax you could be paying.
Hit the sweet spot? Maybe you still want to contribute even more to your RRSP
Providing you haven’t gone over your contribution limit, you’ll still get money back! And it’s still a great way to save for retirement.