CRA Announces 2027 and 2028 RRSP and Pension Limits: What It Means for Your Savings
On October 28, 2026, the Canada Revenue Agency published the new registered plan and pension earnings limits for 2027 and 2028 on its Savings and pension plan administration page. These figures look technical, but they set the ceiling on how much you can shelter from tax in an RRSP or a workplace pension, and how much of your salary counts for the Canada Pension Plan. If you save in an RRSP, pay into a pension, or run payroll, the announcement changes your planning numbers.
The confirmed figures
According to the official Canada.ca announcement dated October 28, 2026:
- 2028 RRSP limit: $36,390. This is the maximum new RRSP room anyone can earn for the 2028 tax year.
- 2027 money purchase (MP) limit: $36,390. The cap on annual defined-contribution pension and deferred profit sharing contributions. The 2027 DPSP limit is $18,195.
- 2027 defined benefit (DB) limit: $4,043.33. The annual pension benefit a defined benefit plan can provide for a member.
- 2027 YMPE: $76,700. The maximum pensionable earnings on which you contribute to the base CPP in 2027.
- 2027 YAMPE: $87,400. The additional maximum pensionable earnings on which the enhanced CPP2 contributions apply.
For context, the same page confirms the 2027 RRSP limit, announced in October 2025, at $35,390. The 2028 RRSP limit rising to $36,390 follows the same pattern: each year's RRSP limit is tied to the money purchase limit from the year before, indexed to wage growth.
Why the RRSP limit matters before March 2027
The RRSP limit is a ceiling, not a gift. Your actual RRSP room for a tax year is 18 percent of your earned income from the previous year, capped at the dollar limit, plus any unused room you carried forward. The figures in this announcement mostly matter for high earners who max out the cap, and for employers designing pension plans.
Two dates deserve attention:
- March 1, 2027 is the last day to contribute to your RRSP and deduct it on your 2026 return, because contributions are allowed in the first 60 days of the following year. That is a filing deadline for the deduction, not a hearing or in-force date.
- Your 2027 notice of assessment tells you your actual RRSP room for the 2027 tax year. Checking My Account is more reliable than estimating from the headline limit.
If you contribute more than your room, the CRA may assess a 1 percent per month tax on the excess. The announced limit does not create room by itself.
What the YMPE change means on your paycheque
The YMPE for 2027 is $76,700. If you earn less than that, the change does not affect your base CPP contributions. If you earn more, a larger share of your salary is pensionable in 2027 than in 2026, when the YMPE is $74,600.
Between $76,700 and the 2027 YAMPE of $87,400, you also contribute to CPP2 on the enhanced portion. Employees and employers each pay on those earnings up to the YAMPE. Self-employed people pay both shares. If you run a small business, these are payroll numbers to plan for in 2027.
What the announcement does not cover
The October 28 announcement deals with registered plan and CPP earnings limits. It does not set the TFSA dollar limit for 2027, which the CRA confirms separately. As of early November 2026, the Canada.ca TFSA pages still listed the 2026 limit of $7,000. Anyone quoting a firm 2027 TFSA figure before the CRA publishes it is guessing.
Practical takeaways
- High earners: the 2028 RRSP cap of $36,390 gives you three planning years of certainty. Contributions you make now use existing room; the new cap applies to room earned for 2028.
- Pension members: the DB limit of $4,043.33 for 2027 caps the annual benefit a defined benefit pension can accrue for you, which matters in executive and professional plans.
- Employers: the 2027 YMPE and YAMPE feed directly into CPP and CPP2 payroll deductions. A payroll setup that still uses 2026 figures in January 2027 may under-withhold.
- Everyone else: your RRSP room depends on your own earned income and carryforward, not on the headline number. Check your notice of assessment before contributing.
Registered plan and payroll issues can intersect with legal problems: a workplace dispute over pension entitlements, an employment termination that raises questions about final contributions, or a Small Claims dispute over an unpaid amount. Those are the points where getting advice pays.
JSR Immigration and Legals assists Ontario clients with employment matters, Small Claims Court, Landlord and Tenant Board issues, WSIB claims and notarial services. See our services page or contact us at (647) 286-4266 or info@jsrlegals.ca.
This is general information, not legal advice, as of November 3, 2026. Limits and program rules can change; confirm current details on Canada.ca before relying on them.
Sources
- Canada Revenue Agency, What's new, Savings and pension plan administration (updated October 28, 2026): https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/whats-new.html
JSR Legals / JSR Immigration Ltd. 9300 Goreway Drive, Suite 205, Brampton, ON L6P 4N1 (647) 286-4266 info@jsrlegals.ca
Immigration & paralegal practitioner at JSR Immigration & Legals, helping newcomers and Ontario residents with their cases.
This post is general information about Canadian immigration and Ontario paralegal matters and is not legal advice. Rules change and every case is different — confirm current requirements for your own situation.