How much tax is withheld when I receive a pension from a pension account?

Under the Income Tax Act, when contributions for which a tax credit was received and investment returns are received as a pension, tax is withheld at 5% if you are under 70 as of the date of receipt, 4% if you are 70 or older but under 80, and 3% if you are 80 or older.

Life-annuity contracts that pay until death are taxed at 3%, and if both conditions apply, the lower rate is used. When retirement income is received as a pension, 50%-70% of the withholding rate for non-pension withdrawals applies, depending on the actual year of receipt.