Seniors and students

Whether you get the tax withheld returned to you on your tax return, depends on the tax bracket you are in. If your net income, including the RRSP withdrawal is below $11,635, you should be refunded the tax withheld. The T4RSP slip you have been issued by the bank will show the amount of taxable income you need to report and the tax withheld. 

Your bank is mandated to withhold tax on RRSP withdrawals by CRA, and the withholding rates vary according to the amount of the withdrawal. The tax that was withheld may not always be enough to account for the tax you owe at your tax bracket. You may have to pay more tax on the withdrawal when you include the withdrawal on your income tax and benefit return for that year.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-w...

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