Once your RRSP converts to a Registered Retirement Income Fund (RRIF), the CRA requires you to withdraw a minimum amount every year — whether you need the cash or not. Missing this isn’t optional, and the percentage you’re required to take out climbs as you age. Here’s how the 2026 minimum is calculated, the current age-based rates, and what it means for your taxes.
What Is the RRIF Minimum Withdrawal
A RRIF is what an RRSP becomes once you decide to start drawing income from it, and the CRA requires a minimum annual withdrawal starting the year after the RRIF is opened. No minimum withdrawal is required in the calendar year the RRIF is first set up — the requirement kicks in the following year.
How the Minimum Is Calculated
The carrier of your RRIF calculates your required minimum by multiplying the fair market value (FMV) of the RRIF’s holdings as of January 1 of that year by a CRA-prescribed percentage factor. That factor is based on your age (or, if you elected it when the RRIF was set up, your spouse or common-law partner’s age).
2026 Minimum Withdrawal Rates by Age
The prescribed factor increases with age. Approximate 2026 minimum withdrawal percentages include:
- Age 71: 5.28%
- Age 72: 5.40%
- Age 75: 5.82%
- Age 80: 6.82%
- Age 85: 8.51%
- Age 90: 11.92%
- Age 95 and older: 20.00%
For example, at age 72 with a $500,000 RRIF balance on January 1, the required minimum withdrawal for the year would be about $27,000.
Tax Withholding Rules
No withholding tax is deducted at source on the minimum amount itself — but it still counts as taxable income when you file. If you withdraw more than the required minimum, the excess portion is subject to withholding tax:
- 10% on the excess up to $5,000
- 20% on the excess from $5,001 to $15,000
- 30% on the excess above $15,000
Can You Reduce or Delay It
If your spouse or common-law partner is younger, you can elect to base the prescribed factor on their age instead of your own when the RRIF is set up, which lowers the required minimum percentage for every year going forward. This election has to be made when the RRIF is opened and generally can’t be changed later.
FAQ
Do I have to withdraw the minimum even if I don’t need the money?
Yes. The minimum withdrawal is mandatory once it applies, regardless of your personal cash-flow needs — you can always reinvest the after-tax amount elsewhere if you don’t need to spend it.
What happens if I withdraw less than the minimum?
The RRIF carrier is required to pay out at least the minimum amount for the year, so in practice you can’t simply choose to withdraw less than what’s required.
This article is for general informational purposes and is not tax or financial advice. Prescribed factors and tax rules can change — always confirm current amounts on Canada.ca or with a qualified tax professional before making withdrawal decisions.