RRIF Minimum Withdrawal 2026: Rates by Age, Withholding Tax and Using a RRIF to Pay for Care

The RRIF minimum withdrawal is a set percentage of the fund's value on January 1, by age: 5.28% at 71, 5.82% at 75, 6.82% at 80, 8.51% at 85, 11.92% at 90 and 20% from 95 (Canada Revenue Agency); under 71 it's 1 divided by (90 minus your age). An RRSP must be converted to a RRIF or an annuity, or cashed out, by December 31 of the year you turn 71, and no tax is withheld on the minimum itself.

Maybe your parent's RRIF is now their biggest pot of money, and care is starting to cost more than their pensions bring in. Or you're helping with their finances and the bank just asked how much to withdraw. The rules are simple once you see them in one place, and a few choices can lower the tax noticeably.

What are the RRIF minimum withdrawal rates for 2026?

The minimum is the fund's value on January 1 times the factor for your age at the start of the year. You can elect to use your spouse's or common-law partner's age instead, which lowers the minimum if they're younger (this choice is made when the RRIF is set up). No minimum is due in the year the RRIF is opened.

Example (illustrative): a parent aged 80 with $400,000 in a RRIF on January 1 must take at least $27,280 that year.

How much tax is withheld on a RRIF withdrawal?

None on the minimum. On the part you take above the minimum, the financial institution withholds tax (outside Quebec): 10% on up to $5,000, 20% on $5,000 to $15,000, and 30% above $15,000. Quebec has its own rates.

Withholding isn't the final tax. Every dollar out of a RRIF is taxable income for the year, so your parent may owe more (or get some back) at tax time. Many retirees ask the bank to withhold extra on the minimum to avoid a bill in April.

Our take: If a parent is paying for care, plan RRIF withdrawals together with the medical expense tax credit. Large care costs can offset much of the tax on a bigger withdrawal in the same year, so the timing of a large withdrawal matters.

When do you have to convert an RRSP to a RRIF?

By December 31 of the year you turn 71. The three choices are: transfer it to a RRIF, buy an annuity, or withdraw it as cash (fully taxable that year, so rarely the best choice). The last day to contribute to your own RRSP is the same December 31.

Should you take more than the minimum to pay for care?

Often, yes, but plan it. Things to weigh:

• Tax bracket: spreading withdrawals across years usually costs less tax than one big one.
• The OAS clawback: a large withdrawal can push income over the OAS clawback threshold.
• Care costs: private home care or a retirement home can bring large medical expense claims that offset the tax.
• Pension splitting: from 65, RRIF income counts as eligible pension income for splitting with a spouse and for the pension income amount.

What happens to a RRIF when someone dies?

It depends on who is named. A spouse or common-law partner can usually take it over as successor annuitant or roll it into their own plan. Otherwise the value is generally taxed as income on the final return. Check the beneficiary on file, especially after a move to care, and see our estate planning guide. Our inheritance tax guide explains how the final return works.

How do you help a parent manage their RRIF?

With a power of attorney for property in place, you can talk to the bank on their behalf. Set the withdrawal schedule once a year, match it to the care bills, and keep receipts for the tax return.