Most employees don't really know why they get a tax refund when they add to an RRSP.

They understand that they do get one, and that it's "good" but really they don't understand the mechanics.

It's actually so simple.

🧵 Your employer is estimating how much tax you'll owe based on how much they're paying you.

If you add to a personal RRSP, your employer doesn't account for that in their estimate.

When you put money into an RRSP, the CRA won’t charge you income tax on the amount you put in.