Rules update
2026 Canadian retirement rules & numbers
Reviewed by The Retirement Beast editorial team · figures verified against CRA / Service Canada · Updated
Every figure our calculators use for 2026, in one reference (constants verified 2026-07-12). Government amounts change annually — and OAS/GIS quarterly — so re-confirm with CRA and Service Canada before relying on them for a decision.
Start planning with 2026 rulesRegistered accounts
| Account | 2026 limit |
|---|---|
| TFSA annual | $7,000 |
| TFSA cumulative (since 2009) | $109,000 |
| RRSP dollar limit | $33,810 (or 18% of prior earned income − PA) |
| FHSA | $8,000/yr · $40,000 lifetime |
| Home Buyers' Plan | $60,000 / person |
CPP (Canada Pension Plan)
- First earnings ceiling (YMPE): $74,600
- Second earnings ceiling (YAMPE, for CPP2): $85,000
- Maximum retirement pension at 65: $1507.65/month (about $18,091.80/year)
- Timing adjustment: −0.6%/month before 65 (max −36% at 60), +0.7%/month after 65 (max +42% at 70)
- Base contribution rate 5.95% each (employer and employee); CPP2 adds 4% on the YMPE–YAMPE band
- One-time death benefit: $2,500
The average new pension at 65 is far below the maximum (roughly $800–$900/month), because few people contribute at the ceiling for a full career. Use your My Service Canada Account estimate. See when to take CPP.
OAS & GIS (quarterly-indexed)
| Benefit | Amount |
|---|---|
| OAS max, ages 65–74 | $751.97/mo |
| OAS max, ages 75+ | $827.17/mo |
| OAS clawback threshold (2026 tax year) | $95,323 |
| GIS max, single | $1123.17/mo |
| GIS single income cut-off (approx) | $22,800 |
- OAS deferral: +0.6%/month past 65, max +36% at 70
- Clawback rate: 15% of net income above the threshold
- Full OAS residency: 40 years in Canada after 18 (minimum 10 to receive)
OAS and GIS are reviewed every quarter and rise with the Consumer Price Index. See the OAS clawback guide and the CPP/OAS calculator.
Federal income tax (2026)
| Taxable income up to | Rate |
|---|---|
| $58,523 | 14.0% |
| $117,045 | 20.5% |
| $181,440 | 26.0% |
| $258,482 | 29.0% |
| Above previous band | 33.0% |
- 14% on the first $58,523
- 20.5% from $58,523 to $117,045
- 26% from $117,045 to $181,440
- 29% from $181,440 to $258,482
- 33% above $258,482
The lowest rate is 14% for 2026 (the full-year rate after the mid-2025 change from 15%). Provincial tax stacks on top; our tools model ON, AB, and BC in full, with Quebec approximated.
Key credits & retirement figures (2026)
- Basic personal amount: up to $16,452 (reduced to $14,829 for the highest earners)
- Age amount (65+): up to about $9,208, phased out from about $46,432 of net income
- Pension income amount: first $2,000 of eligible pension income
- Pension income splitting: up to 50% of eligible pension income (Form T1032)
- Capital gains inclusion rate: 50%
- Eligible dividend gross-up: 38%
RRIF minimum withdrawals
An RRSP must convert to a RRIF (or annuity) by the end of the year you turn 71. Minimum withdrawal factors rise with age — for example about 4.0% at 65, 5.28% at 71, 5.82% at 75, 6.82% at 80, and reaching 20% at 95 and older. Before 71 the minimum can be based on the formula 1 ÷ (90 − age). You may elect to use a younger spouse's age to lower the minimum. See the full factor table in the code at lib/retirement-data/2026.ts.
How we maintain these numbers
Constants live in versioned modules and are re-verified against CRA and Service Canada. See docs/CONSTANTS_UPDATE.md and run npm run constants:check when a new year's figures are published.
Frequently asked questions
What is the TFSA limit for 2026?
The 2026 TFSA annual limit is $7,000. Someone eligible since the TFSA began in 2009 has about $109,000 of cumulative room in 2026.
What is the OAS clawback threshold for 2026?
About $95,323 of net income for the 2026 tax year. Above that, OAS is reduced by 15% of the excess.
What are the CPP earnings ceilings for 2026?
The first ceiling (YMPE) is $74,600 and the second ceiling (YAMPE, used for CPP2 contributions) is $85,000 for 2026.
Educational only — not financial or tax advice. Figures verified against CRA and Service Canada in July 2026. OAS and GIS change quarterly; most other figures are indexed annually. Confirm current values before relying on them.