||% Tax Withheld
|From $0 to $5,000
|| 10% (5% in
|From $5,001 to $15,000
|| 20% (10% in
|Greater than $15,000
|| 30% (15% in Quebec)
Note that for non-residents of Canada, the withholding tax rate is 25%, but
can be reduced by a tax treaty.
For a single withdrawal from RRSP funds held in the province of Québec, there will also be
income tax withheld. See Revenue Quebec's Payments
from an RRSP or a RRIF.
The above withholding tax rates also apply to in
kind withdrawals, so sufficient cash must be available in the RRSP to pay
Note that the above withholding tax amounts are only estimates, which you will
show on your tax return as taxes already remitted. The withdrawal amount
will be included in your taxable
income. Your total taxable income
will determine the total taxes payable.
No tax is withheld when the minimum
amount is withdrawn from a RRIF. When
withdrawals in excess of the minimum amount are made, the
above RRSP lump sum withholding tax rates apply. For
further information on this topic, see the Canada Revenue Agency (CRA) document Withholding
tax on payments from a RRIF.
The withdrawal from the RRIF is included in the taxpayer's
taxable income, so depending on the individual's circumstances, tax may be
payable when the tax return is filed.
The minimum withdrawal amount was waived in 2007 for
RRIF owners who turned 70 or 71 in 2007, and in 2008 for RRIF owners who
turned 71 in 2008. However, withdrawals up to the normal minimum
withdrawal amount were still not subject to withholding tax.