Yes, RRSP withdrawals are taxed twice. When you withdraw the RRSP, the taxes on the RRSP withdrawals are withheld by the financial institution. The RRSP withholding tax rates for Canadians (except residents of Quebec) are 10%, 20% and 30% depending on the amount of withdrawal. Later, at the time of filing the tax return, your RRSP income is treated as a part of your taxable income and you pay taxes on it just like your other income. The income from RRSP withdrawals during the year might push you up a tax bracket so you’ll have to pay taxes at a higher marginal tax rate.