Group RRSP

Tax & Income

An RRSP set up through your employer where contributions come directly from your paycheque. Your employer may match contributions (free money). Unlike some pensions, this is your account and you keep it if you change jobs.

Related Terms

Marginal Tax Rate

The tax rate you pay on your last dollar of income. If your marginal rate is 30%, every extra dollar you earn means you keep 70 cents and pay 30 cents in tax. This is different from your average tax rate because Canada uses tax brackets where you pay different rates on different portions of your income.

Take-Home Pay

The actual money that lands in your bank account after all deductions (taxes, CPP, EI) are taken from your gross salary. Also called net pay. This is what you actually have to spend.

Gross Income

Your total income before any taxes or deductions are taken off. It's the number on your job offer or T4 slip.