A retractable canopy assembly includes a recoiling member that has a first end, a second end and a perimeter wall extending between the first and second ends. A mount is attached to the recoiling member and is configured to engage a dwelling surface. A canopy has an attached end, a free end, a top surface, a bottom surface, a first lateral edge and a second lateral edge. The attached end extends through the canopy aperture and is attached to the spindle of the recoiling member. The recoiling member retracts the canopy into the recoiling member when the spindle rotates in the first direction. A pair of legs each is pivotally attached to the canopy adjacent to the free end. A pair of side panels each has a fixable end and a hanging end. Each of the first and second lateral edges has one of the fixable ends removably coupled thereto.