Income Splitting

Retirement planning & income strategies

Retirement Income Splitting

Compare your household tax with and without pension splitting, then see how much of an additional RRSP or RRIF withdrawal you would keep.

2026 tax year · Ontario only. For couples resident in Canada throughout the year and Ontario at year-end, married or common-law throughout 2026, without separation, bankruptcy, or special tax situations. Employment is ordinary insurable employee income, not self-employment.

Enter annual amounts before tax, including only payments actually received or expected in 2026. Enter $0 for deferred CPP or OAS. Both can be deferred to age 70; this page does not choose a benefit start date or estimate your entitlement.

The prefilled amounts are examples. Replace them with your own estimates.

Looking beyond one year? Try the experimental Retirement Resilience Explorer to compare spending, survivor and estate outcomes across different futures.

You
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Other income and payroll assumptions
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Deductible cash outflows must be paid in 2026 and deductible from net income, such as allowable RRSP/RPP contributions or union dues. They reduce both income for tax and household cash. Do not enter CPP/EI again, non-cash deductions, or expenses already subtracted from your income. Contribution room is not checked.

The estimate assumes full-year CPP eligibility and standard EI. For a valid election after 65, part-year contribution eligibility, or someone turning 70, choose the appropriate setting. EI still applies when CPP contributions stop.

Your spouse
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Other income and payroll assumptions
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Deductible cash outflows must be paid in 2026 and deductible from net income, such as allowable RRSP/RPP contributions or union dues. They reduce both income for tax and household cash. Do not enter CPP/EI again, non-cash deductions, or expenses already subtracted from your income. Contribution room is not checked.

The estimate assumes full-year CPP eligibility and standard EI. For a valid election after 65, part-year contribution eligibility, or someone turning 70, choose the appropriate setting. EI still applies when CPP contributions stop.

Try an additional withdrawal

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Enter $0 to compare your existing income only. This assumes the funds are available and, for RRIF payments, you have an appropriate RRIF. RRIF minimums and account balances are not checked. CPP and OAS stay unchanged in this comparison.

Which income can be split?

Qualifying workplace lifetime pensions generally qualify at any age. Ordinary RRIF/LIF payments and RRSP annuities generally qualify if their owner is 65+ at year-end; the receiving spouse can be younger. Regular RRSP withdrawals, CPP, and OAS cannot be split through T1032. A recipient's pension tax credit is checked separately.

Budget proposal, not modeled: Budget 2026 proposes an “RRSP for life” merging RRSP/RRIF features, with minimum withdrawals still required after 71. This calculator retains the applicable RRSP/RRIF distinction; it does not assume that the proposal has changed pension-splitting eligibility.

CRA pension income splitting · CPP start ages · OAS start ages · Budget 2026 proposals

Estimates are rounded to cents, not a completed return. Verify decisions with current tax software or a qualified professional. All calculations stay in your browser.