Pension income splitting calculator
Estimate household tax effects from eligible pension income splitting.
Estimate household tax effects from eligible pension income splitting.
Estimate household tax effects from eligible pension income splitting.
Estimate annual tax savings from splitting eligible pension income. Pair with our OAS clawback calculator, RRIF minimum calculator, and CPP estimator.
See how much tax you and your spouse can save in 2026 by splitting eligible pension income. Up to 50% of qualifying pension income can be reported on the lower-income spouse's return — typically saving Canadian retirees $2,000–$8,000 per year.
Q
How does pension income splitting work in Canada?
A
If you receive eligible pension income (workplace pension, RRIF withdrawals after 65, life annuities), you can elect to report up to 50% of it on your spouse's return — shifting income to the lower marginal tax bracket. Both of you sign Form T1032 with your tax filings each year. Most retired couples save $2,000–$8,000.
Last reviewed 2026-04-21