Short Answer
RRIF withdrawals are mandatory each year, calculated as your January 1 balance times an age-based factor. The minimum itself has no withholding tax but is fully taxable. If you are 65+, you can split up to 50% of RRIF income with your spouse, one of the most effective retirement tax tools available to Canadian couples. For the broader drawdown context, start with our retirement planning hub.
How the Minimum Is Set
The minimum each year is the January 1 balance multiplied by a prescribed factor: 1 ÷ (90 − age) up to age 70, then CRA’s published factors, from 5.28% at 71 to 20% at 95 and older. The rate for every age, with dollar examples, is in the RRIF minimum withdrawal table.
Withholding Tax on RRIF Withdrawals
| Withdrawal above minimum | Federal withholding rate | Quebec withholding (combined) |
|---|---|---|
| $0–$5,000 | 10% | 19% |
| $5,001–$15,000 | 20% | 24% |
| Over $15,000 | 30% | 29% |
| Mandatory minimum amount | 0% (no withholding) | 0% |
Withholding is a prepayment, not a final tax. Where the effective tax rate exceeds withholding (common for withdrawal of the minimum only), a balance will be owing at filing time; asking the carrier to withhold more is one way to avoid this.
Pension Income Splitting: RRIF at Age 65+
You can allocate up to 50% of your eligible pension income to your spouse or common-law partner with a joint election on Form T1032 filed with both returns, if you were both Canadian residents on December 31 and were not living apart because of a relationship breakdown for 90 days or more including December 31; RRIF (including LIF) and RRSP annuity payments count only if you are 65 or older at the end of the year (or received them because your spouse died), and OAS and CPP/QPP never count.| Scenario (all income is RRIF or pension income) | Without splitting | Split so both spouses report the same income | Annual tax saving |
|---|---|---|---|
| Spouse A: $50,000, spouse B: $30,000 (both end at $40,000) | $10,222 | $10,222 | $0/year |
| Spouse A: $90,000, spouse B: $30,000 (both end at $60,000) | $21,518 | $18,834 | $2,684/year |
| Spouse A: $120,000, spouse B: $40,000 (both end at $80,000) | $33,714 | $30,994 | $2,719/year |
Combined federal and Ontario income tax for 2026, computed from the tax bracket data with the basic personal amounts, the Ontario surtax and the Ontario Health Premium. The age amount and the pension income credit are left out; both lower the tax in every column, so the savings are approximate. Totals are rounded to the dollar, so a saving can differ by $1 from the difference between the rounded totals. Each split stays within the 50% limit. The saving is largest when splitting moves income out of one spouse’s higher bracket into the other’s lower bracket; in the first row both spouses stay in the lowest brackets, so splitting saves little or nothing. The model covers incomes of $30,000 and up, where low-income provincial reductions do not apply.
Pension income splitting can include RRIF income (as well as annuity payments); regular RRSP withdrawals do not qualify. This is one reason early conversion to a RRIF at age 65 can be beneficial for income-splitting purposes.
RRIF Income Eligible for Pension Income Credit
If you are 65 or older, RRIF income qualifies for the $2,000 federal pension income credit (14% × $2,000 = $280 federal tax reduction, using the 2026 federal lowest-bracket rate). Provincial tax may also include a pension income credit, with its own amount. RRSP withdrawals, CPP, and OAS do not qualify for this credit; only pension income or RRIF income from age 65+.
| Age | RRIF income eligible for pension credit? |
|---|---|
| Under 65 | ❌ Only if from a deceased spouse’s RRIF |
| 65 or older | ✅ Yes, up to $2,000 credit-eligible |
Spousal RRIF Strategy
A withdrawal from a spousal RRSP is taxed to the contributing spouse, up to what they contributed to any spousal RRSP in the year of the withdrawal or the two years before, unless the couple had separated because the relationship broke down, either was a non-resident, the contributor died that year, or the money moved directly to another registered plan or an eligible annuity; RRIF withdrawals above the minimum, and transfers to the annuitant's FHSA that count as taxable withdrawals, are caught the same way.| Strategy | How it works | Income attribution? |
|---|---|---|
| Spousal RRSP → convert to spousal RRIF | Lower-income spouse holds and withdraws | Only withdrawals above the minimum can be attributed to the contributor, and only within the 3-year window |
| Pension income splitting of own RRIF | 65+: allocate up to 50% to spouse at tax time | Administrative split, no attribution |
| Elect younger spouse’s age for minimums | Reduces mandatory withdrawal each year | No attribution — only affects calculation |
RRIF on Death: Beneficiary Options
| Beneficiary | Tax treatment |
|---|---|
| Spouse or common-law partner (successor annuitant) | RRIF simply continues in their name as the new annuitant — no immediate tax |
| Spouse or common-law partner (beneficiary) | RRIF collapses, but proceeds roll over tax-deferred to their own RRIF or an annuity (or their own RRSP if 71 or younger at the end of that year); no immediate tax |
| Financially dependent child/grandchild (under 18) | Balance can be converted to a term annuity to age 18, deferred tax |
| Financially dependent child with a disability | Can roll into their RRSP or RDSP — deferred tax |
| Adult child, estate, or other beneficiary | Full RRIF value at death included in deceased’s final return |
Naming a spouse as RRIF beneficiary directly, rather than leaving it to the estate, generally avoids probate on that balance and the Form T1090 joint designation a spouse needs when the payment goes to the estate.
Strategies to Reduce RRIF Tax Burden
| Strategy | Tax effect |
|---|---|
| Use younger spouse’s age factor | Smaller mandatory minimums — more stays tax-deferred |
| Convert at 65 for pension splitting | RRIF income can be split from 65, instead of only after converting at the age-71 deadline |
| Top up TFSA with RRIF withdrawals | RRIF income is taxable but subsequent TFSA growth and withdrawals are tax-free |
| Charitable donations | Donation tax credit reduces the tax payable on RRIF income |
| Elect pension income splitting (T1032) | Shift up to 50% of RRIF income to lower-income spouse each year |
| Gift to TFSA (spouse’s TFSA) | Money you give your spouse to contribute to their TFSA, and the income it earns, is not attributed back to you |
If you are deciding when to start this process, see best time to convert RRSP to RRIF.
Bottom Line
RRIF withdrawals increase each year as the mandatory percentage grows with age: at age 90, the minimum is 11.92% of your balance. Tax can often be reduced by using the younger spouse’s age factor, splitting pension income at 65, naming a spouse as direct beneficiary, and redirecting withdrawals into TFSAs for tax-free growth.
Related Reading
- What happens to an RRSP when you die
- FHSA Withdrawal Rules 2026 | How to Use Your FHSA
- LIF Withdrawal Rules in Canada: Minimums, Maximums & Strategies (2026)
- RRSP Withdrawal Rules Canada | Taxes, Withholding & Penalties
→ Back to: Complete RRSP Guide
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: Pension income splitting
- Canada Revenue Agency: Chart – Prescribed factors
- Canada Revenue Agency: RRSP: Tax rates on withdrawals
- Canada Revenue Agency: Payroll Deductions Formulas - 123rd Edition Effective July 1, 2026
- Canada Revenue Agency: Pension income amount - Personal income tax
- Canada Revenue Agency: Current year tax rates and income brackets (2026) - Personal income tax
- Canada Revenue Agency: RRSPs and Other Registered Plans for Retirement
- Canada Revenue Agency: Death of an RRSP Annuitant
- Canada Revenue Agency: Withdrawing from spousal or common-law partner RRSPs
- Justice Laws (Canada): Income Tax Act