Both the federal and Québec tax systems allow deductions for contributions to a Registered Retirement Savings Plan (RRSP), Pooled Registered Pension Plan (PRPP), and Voluntary Retirement Savings Plan (VRSP), with each province applying specific forms and rules. Maximum contribution limits are set federally and are the same for Québec, but the personal deduction limit depends on earned income, pension adjustments, and any unused contribution room.
RRSP deductions
Federal: The RRSP deduction limit is the lesser of 18% of the previous year's earned income or the annual maximum ($32,490 for 2025), plus any unused contribution room from prior years. Contributions reduce taxable income dollar-for-dollar and are claimed on line 20800 of the T1 return. Contributions to a spouse's or common-law partner's RRSP also reduce the contributor’s RRSP limit.
Québec: RRSP contributions are reported on line 214 of the provincial return, with the deduction claimed on the appropriate line based on contribution type.
PRPP and VRSP deductions
Federal: Personal contributions to a PRPP are deductible but reduce the overall RRSP deduction limit. Employer contributions are not deductible and do not affect the personal RRSP limit. Personal PRPP contributions are claimed on line 20800 of the T1 return.
Québec: The VRSP is Québec’s equivalent of a PRPP. Personal VRSP contributions are deductible and reported using the provincial form to claim the appropriate deduction on the Québec return.
Calculating the RRSP deduction limit
Start with the previous year’s earned income, including salary, commissions, business income, and certain rental income. RRSP Limit = Lessor of:
- (18% × Earned Income, Annual Maximum)
- + Unused Room from Prior Years − Pension Adjustments (PAs)
The RRSP deduction limit is reported at the bottom of the CRA Notice of Assessment each year, and contribution limits are also available online through My Account and Represent a Client.
RRSP / PRPP / VRSP Transfers and HBP/LLP Repayments
- Transfers to RRSP or PRPP/VRSP: Amounts included on line 20800 of the federal return as transfers should not be included on Québec line 214. Instead, report them on line 250.
- Repayment under Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) – line 212: Contributions made to an RRSP or PRPP/VRSP in the year (or within the first 60 days of the following year) can be designated as repayment for amounts previously withdrawn under the HBP or LLP.
- Minimum repayment: The required repayment for the current year is shown on the most recent Notice of Assessment, Notice of Reassessment, or Statement of Account from the federal government. If not repaying the minimum, report the required amount on line 154.
- Important: Amounts designated for repayment must not have been deducted on line 214 or 250 of the return.
Example :
Julie Tremblay earned $60,000 in 2024. She contributed:- RRSP: $5,000
- PRPP: $1,500
Her available contribution room is $4,000. What amount can she deduct on Federal T1 and Quebec TP-1 returns, and what is her net income for tax purposes?
Answer:
- Total contributions eligible: $5,000 + $1,500 = $6,500
- Deduction limited to available contribution room: $4,000
- Net income after deduction: $60,000 − $4,000 = $56,000
- Excess contributions ($2,500) can also be carried forward
Deduction rules and limits are the same for Federal and Quebec; only the line numbers differ (20800 Federal, 214 Quebec).
Posted on 8 January, 2026