When I use the RRSP Wizard, it shows roughly a constant refund no matter how large a contribution I select. I am setup to do my tax return and my wife's as well. The default refund value was around 4000. If I select to contribute an additional 25,000 it shows around 4000 as well.
The amounts contributed to your RRSP reduces your net income. Once the amount of RRSP deducted fills this need to reduce the net income, the difference made in the refund will be less as some of the RRSP contributions are not used. The rest of the contributions which have no effect on your taxes can be carried forward to reduce the next year's net income amount in order to pay fewer taxes.
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