General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
The income CRA uses to calculate how much RRSP room you get. It mainly includes employment income and self-employment income, but not investment income.
Technical definition
Earned income is the mathematical basis for computing the RRSP deduction limit. It primarily includes employment income (T4 Box 14), net self-employment income, rental income, and certain other amounts, less specific deductions. It is established by the Notice of Assessment and is used in the formula: RRSP room = 18% of prior-year earned income, up to the annual dollar limit.
Examples
- • You earned $90,000 in employment income in 2025. Your 2026 RRSP deduction limit from this is 18% × $90,000 = $16,200.
- • $50,000 in dividends doesn't count as earned income — it generates zero RRSP room.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.