RRSP contributions and other personal deductions
Other deductions
Section 60 allows individuals to deduct RRSP contributions, spousal support payments, moving expenses (via s.62 reference), and certain repayments from their income.
Plain-language explanation
Section 60 provides the deductions that sit between your gross income (s.3) and taxable income. Key provisions:
s.60(i) — RRSP contributions: You can deduct contributions to your own RRSP or a spousal RRSP up to your RRSP deduction limit (18% of prior year earned income, up to the annual dollar limit of $32,490 for 2026, plus any unused room carried forward). The deduction reduces your taxable income dollar for dollar.
s.60(b) — Spousal support: Periodic spousal support payments (under a court order or written agreement) paid to a former spouse are deductible. Lump-sum support payments are generally not deductible.
s.60(j) — Repayments: Certain social benefit repayments (EI clawback, OAS clawback) can be deducted.
The RRSP deduction strategy: The power of an RRSP contribution is not just tax deferral — it's rate arbitrage. If you contribute at a 43% marginal rate and withdraw at a 25% marginal rate in retirement, the government paid 43 cents per dollar in; you pay back 25 cents per dollar out. The difference is pure tax savings.
Example
Mei earns $110,000 in 2026 (marginal rate: 43%). She contributes $15,000 to her RRSP. Under s.60(i), she deducts $15,000, saving $6,450 in tax ($15,000 × 43%). Her net cost of saving $15,000 is only $8,550.
Amendment history
Significant changes to this provision. Older versions help you understand rules that applied in prior tax years.
2024 budget raised the RRSP Home Buyers' Plan (HBP) withdrawal limit from $35,000 to $60,000 per person for withdrawals made after April 16, 2024. The repayment period was also extended from 2 to 5 years for first-time homebuyers who made an HBP withdrawal between January 1, 2022 and December 31, 2025.
Before
$35,000 maximum HBP withdrawal per person; repayment begins 2 years after withdrawal year
After
$60,000 maximum HBP withdrawal per person; extended repayment period for qualifying 2022–2025 withdrawals
Common questions
How much can I contribute to my RRSP in 2026? +
Your RRSP deduction limit is 18% of your 2025 earned income (employment, self-employment, rental), up to $32,490, plus any unused room from prior years. The exact limit is on your 2025 Notice of Assessment or in CRA My Account.
What is the RRSP contribution deadline? +
March 1, 2027 for 2026 RRSP contributions. This 60-day window after year-end lets you contribute to the prior year's limit. Contributions after March 1 apply to the current year.
Can I deduct lump-sum spousal support? +
Generally no. Only periodic support payments (weekly, monthly, etc.) are deductible under s.60(b). Lump-sum settlements are capital payments and not deductible.
Key terms
Related sections
Related calculators
Related guides
Source: Income Tax Act, RSC 1985, c. 1 (5th Supp.), section 60. — Read the official text on Justice Canada
These summaries are for educational purposes only and do not constitute legal or tax advice. Speak with a CPA for advice on your specific situation.