Your Bracket Is Not Your Rate

<p>Most of us decide RRSP or TFSA, or how much to draw from a RRIF, off our tax bracket. This episode is about the number that should decide it: what your next dollar costs once the clawbacks are counted.</p><p>1. An Ontario family on $60,000 with 2 kids and a bracket of about 30 percent pays 77 cents on the next dollar, once the Child Benefit and 3 other income-tested credits are counted. Counting CPP and EI, no province or territory is under 50 cents for them.<br>2. The same rules pay back. A $5,000 RRSP contribution returns about $3,200.<br>3. A single retiree on GIS taking $9,000 from a RRIF pays no income tax and still loses 75 cents of the next RRIF dollar. A TFSA dollar costs her nothing for GIS.</p><p>Every figure comes from my Marginal Rate Map, which is in my paid community with the guides, the calculator library and live sessions. Free guides are on my email list at calmmoneycoach.com</p><p>Education, not advice. 2026 figures, one modelled household each.</p>