Notice of Assessment (NOA)

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Notice of Assessment (NOA)

A Notice of Assessment (NOA) is an annual statement issued by the Canada Revenue Agency (CRA) that confirms how your tax return was processed and shows the CRA’s calculation of your tax position for the year.

What an NOA includes

An NOA summarizes key tax information based on the return you filed and any corrections the CRA made. Typical items shown include:
* The amount of income tax owed or the refund due
* Income reported and deductions claimed
* Tax credits and non-refundable federal tax credits
* Income tax already paid (withholdings, instalments)
* Any changes or corrections the CRA applied to your return
* Whether you have been selected for audit or review
* Your RRSP deduction limit and unused contribution room

RRSP information and rules shown on the NOA

The NOA provides your RRSP contribution room for the following year. Key points:
* Contribution limit formula: the lower of (a) 18% of the previous year’s earned income, or (b) the annual RRSP maximum set by CRA, plus any unused contribution room carried forward.
* RRSP contributions reduce taxable income when claimed as deductions; you may choose to defer claiming a contribution to a later year to benefit from a higher future tax rate.
* Excess contributions: if your total contributions (including prior unused amounts) exceed the deduction limit on your latest NOA by more than $2,000, a penalty of 1% per month is charged on the excess.
* Some transfers and lump-sum amounts (e.g., certain pension transfers, eligible pension income from an estate, foreign retirement arrangements) have special rules and may not affect your RRSP deduction limit in the same way.

If you disagree with your NOA or are selected for audit

  • You have 90 days from the NOA date to file a formal objection (by mail or online).
  • When filing an objection, provide supporting documentation that explains the discrepancy.
  • The CRA will investigate the dispute; amounts under objection are not finalized until the CRA completes its review.
  • An NOA may also notify you that your file has been selected for a tax audit or review—follow any CRA instructions and supply requested records.

Examples

  • If your earned income was $50,000 and you contributed $1,000 to an RRSP, you would report taxable income of $49,000 if you claim the deduction that year.
  • If your annual RRSP limit was $15,000 and you made no contributions, you can carry that $15,000 of unused contribution room into future years in addition to that year’s new limit.

What to do when you receive an NOA

  1. Review all amounts and compare them to your filed return and receipts.
  2. Check your RRSP deduction limit and any unused room.
  3. If you disagree, gather supporting documents and file an objection within 90 days.
  4. If selected for audit, respond promptly and retain records requested by the CRA.

Key takeaways

  • The NOA confirms how the CRA assessed your tax return, lists tax owing or refund, and shows adjustments the CRA made.
  • It reports your RRSP deduction limit and unused contribution room—important for tax planning.
  • You have 90 days to object to the NOA if you disagree; the NOA can also indicate selection for audit.