Does an RRSP contribution increase your Canada Child Benefit?
Yes. An RRSP contribution lowers your net income, and the Canada Child Benefit is based on net income. A family with two kids aged 6 to 17 and $85,000 of income gets about $507 more a year from a $5,000 RRSP contribution, on top of the tax refund.
How much more you could get
| Family | Family net income | RRSP contribution | Extra CCB a year |
|---|---|---|---|
| One child under 6 | $60,000 | $5,000 | $350 |
| One child under 6, one aged 6 to 17 | $70,000 | $5,000 | $675 |
| Two children aged 6 to 17 | $85,000 | $5,000 | $507 |
| Two children aged 6 to 17 | $85,000 | $10,000 | $1,182 |
| Two children under 6 | $95,000 | $5,000 | $285 |
Calculated with the July 2026 to June 2027 CCB rates. The effect is largest when your income sits between $38,237 and $82,847, where each dollar of income cuts the benefit the most.
When it shows up
The CCB uses the previous year's income. RRSP contributions deducted on your 2026 tax return, including ones made in the first 60 days of 2027, raise the payments from July 2027 to June 2028.
Either parent's RRSP counts
The benefit is based on adjusted family net income, which combines both parents' net incomes. A deduction on either return lowers it by the same amount.
Other deductions work the same way
Anything that lowers net income can raise the CCB, including the child care expenses deduction, union or professional dues, and moving expenses for work or school.
Try it with your numbers. Change your family income in the calculator and watch the monthly payment move.
Open the CCB calculatorSources
- Canada.ca: Canada child benefit overview
- CPP Investments: How families can get more out of the Canada Child Benefit (2018 figures; the approach still applies)