Hypothetically,
http://www.taxtips.ca/tax_rates.htm#FAQRRSPSavings
$40,000 = 4453 federal.... 2340 provincial = $6793
An 18k RRSP contribution would leave your taxable income for the year at 22k
$22,000 = approx. 1400 federal.... 630 provincial = $2030
A savings of $4760
Taking into account CPP and EI premiums.
About $4000 is savings.
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