Registered Retirement Savings Plans (RRSPs) are among the most flexible savings tools available to Canadians. Contributions are tax-deductible, investment growth inside the plan is tax-deferred, and you have control over when to claim your deductions. But that flexibility can also create confusion — particularly around what happens with contributions you haven't yet deducted from your taxes.
This guide breaks down what unused RRSP contributions are, how they differ from unused contribution room, and how carrying forward deductions works. It also covers contribution limits, where to find your contribution information, and when deferring a deduction might make sense.
What are unused RRSP contributions?
Unused RRSP contributions are amounts you've contributed to your Registered Retirement Savings Plan (RRSP) and reported on your tax return, but haven't yet claimed as a tax deduction. You're required to report each contribution to the Canada Revenue Agency (CRA) in the year it's made, but you can choose to defer the deduction to a future tax year.
These contributions sit in your RRSP and continue to grow on a tax-deferred basis. The deduction itself can be carried forward indefinitely and claimed in a future tax year. This gives you the option to time your deduction for a year when it may have a greater impact on your tax bill.
Unused contributions vs. unused contribution room
While the terms sound similar, there's an important distinction. Unused RRSP contributions are amounts you've already deposited into your RRSP and reported on a tax return, but haven't yet claimed as a deduction. Unused contribution room, on the other hand, is the amount you're still allowed to contribute but haven't yet.
Think of it this way: contribution room is space you haven't filled, while unused contributions are money you've put in but haven't used to reduce your taxable income. Both carry forward from year to year, but they serve different purposes in your tax planning.
Unused RRSP contribution room
One particularly valuable feature of RRSPs is that if you can't (or don't) contribute in a given year, you don't lose the potential tax savings on that money — any unused space is added to your deduction limit for future years. Your contribution room will continue to accumulate.
Here's an example of how this works. In 2025, your contribution limit was $12,000, but you contributed $5,000. Your unused contribution room would be $7,000. In 2026, if your new base contribution limit was $13,000, you could contribute a total of $20,000 — this year's $13,000 plus last year's unused $7,000.
Be mindful not to over-contribute to your RRSP. While the Canada Revenue Agency (CRA) permits a lifetime over-contribution allowance of $2,000, any contributions that exceed that amount are subject to a 1% tax per month until the excess is withdrawn or new contribution room becomes available.
RRSP contribution limits
There are limits to how much you can contribute to your RRSP each year, known as your annual contribution limit. For 2026, that limit was 18% of your earned income, up to $33,810. For 2027, the limit is $35,390. The number changes annually, so check with the CRA each year.
If you're a member of a pension plan or deferred profit sharing plan, your RRSP deduction limit for the coming year is reduced by your pension adjustment. This adjustment reflects the value of pension benefits you earned in the previous year.
You can find your RRSP contribution limit in a few ways, including checking your most recent Notice of Assessment or by logging into your CRA My Account online.
How to find your unused RRSP contributions
Your unused RRSP contributions from previous years are identified on your Notice of Assessment (NOA), which the CRA sends after processing your tax return each year. The NOA shows the total amount of RRSP contributions you've reported but not yet deducted.
You can also view this information by logging into your CRA My Account online. Under the RRSP section, you'll find both your available contribution room and any contributions carried forward from prior years. Keeping track of these figures helps you plan when to claim deductions.
What to do with unused RRSP contributions
If you have unused RRSP contributions from previous years, you have a few options:
Claim the deduction now — deduct the unused contributions on your current tax return to reduce your taxable income and receive a refund
Carry them forward — leave the deduction unclaimed and use it in a future year when your income (and tax bracket) may be higher
Withdraw the contributions — take the money out of your RRSP, though you'll need to include the withdrawn amount as income on your tax return
For most people, claiming the deduction sooner rather than later is the more straightforward approach. By waiting, you could miss out on immediate tax refunds that could be reinvested, along with potential investment growth on that money.
When to defer your RRSP deduction
There are situations where deferring an RRSP deduction can work in your favour:
You expect a significant income increase — if a promotion, career change, or other factors will push you into a higher tax bracket, deferring the deduction to that year could result in a larger tax reduction
You had a low-income year — if your marginal tax rate is already relatively low, the deduction may not save you as much compared to a year when you're in a higher bracket
That said, deferring isn't always straightforward. The potential benefit of a larger future deduction needs to be weighed against the opportunity cost of not receiving a tax refund now. Individual circumstances vary.
