Canadian Tax and
Financial Information
Tax on RRSP and RRIF Withdrawals does not research or endorse any product   or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with!      Internet Explorer - Use compatibility view for calculators to work properly!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources

RRSPs RRIFs and TFSAs -> Withholding tax on RRIF and RRSP withdrawals

What tax is deducted from RRIF or RRSP withdrawals?

When a single lump sum amount is withdrawn from an RRSP, the amount of tax that will be withheld is:

Withdrawal Amount % Tax Withheld
From $0 to $5,000   10%  (5% in Quebec)
From $5,001 to $15,000    20% (10% in Quebec)
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 16% provincial 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 the tax.

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No tax is withheld when the minimum amount is withdrawn from a RRIF.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.

There may be fees charged when a withdrawal is made from an RRSP or RRIF.  These fees are not tax deductible.  This applies if they are paid by the RRSP or RRIF or from a non-registered account.

Also on

bulletCRA warnings regarding schemes which promise tax-free RRSP or RRIF withdrawals.
bulletGet your money out of RRSPs tax-free (sort of) - to see how you can shelter your RRSP withdrawals to save tax

CRA Resources:

bulletTax Rates on Withdrawals
bulletTax Treaties

Tax Tip:  Get INDEPENDENT advice from a tax professional before investing in tax-saving "schemes"  that promise to get your money out of your RRSP without paying tax.


Revised: December 19, 2014




Copyright © 2002 - 2015 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.