Year-End Personal Tax Planning for Canadians

Separate December deadlines from filing-season work

A tax return records the year that has already happened. Some useful decisions need to happen earlier. Build a short calendar, then allow time for your bank, broker, or charity to process instructions.

Plan your RRSP contribution around income and cash flow

Check the RRSP deduction limit and unused contributions on your latest notice of assessment, then reconcile deposits already made across your accounts. Account for contributions already made before deciding how much more to deposit.

Compare your expected 2026 income with next year's outlook. A bonus or unusually strong year may make a deduction more valuable. You can also contribute within your available room and carry an eligible deduction forward when that better suits your circumstances.

Unused RRSP room generally carries forward. Keep enough cash for living costs and tax payments, and review spousal RRSP contributions where retirement planning calls for them. Contributions to a spousal RRSP use the contributor's room, and attribution rules can affect later withdrawals. See CRA's RRSP guidance and contribution-period rules.

Give each registered savings plan a specific job

Choose contributions around your goals and available room. Each plan has its own tax treatment and timing.

• TFSA: Contributions are not deductible. Unused room carries forward, and an ordinary withdrawal is added back to room the following calendar year. Check your own records across all institutions because CRA information may lag. See how TFSA room is calculated.
• FHSA: If you qualify, contributions can support a first-home purchase and an income tax deduction. A contribution made in early 2027 cannot be deducted for 2026. Participation room starts when you open your first FHSA, and unused room has a limited carryforward. Check your participation room and the deduction rules before contributing.
• RESP and RDSP: Review available grants, beneficiary age, prior contributions, and eligibility. The right contribution depends on the grant available and your family's circumstances. See RESP grant rules and RDSP guidance.

Review investment gains and losses before trading

For non-registered investments, compare realized gains with available capital losses. Ordinary capital losses generally offset taxable capital gains, rather than salary or business income. Unused net capital losses can generally be carried back three years or forward indefinitely.

Check the superficial-loss rules before selling and repurchasing. A loss can be denied when you or an affiliated person buys the same or identical property within 30 days before or after the sale and still owns it, or has a right to buy it, 30 days after the sale. Coordinate activity across your accounts and your spouse's accounts.

Keep purchase costs, commissions, sale proceeds, and foreign-currency details. Review the investment decision alongside the tax result. CRA's capital-loss guidance explains the rules and exceptions.

Gather deductions and credits while records are easy to find

Organize receipts for professional or union dues, eligible child care, tuition, moving costs, and other amounts relevant to your circumstances. For employment expenses, confirm eligibility and obtain a completed T2200 where required. The form supports a claim; it does not make every expense deductible. See CRA's employment-expense guide.

If you intend to make a charitable gift for 2026, complete it by December 31 and retain an official receipt from a qualified donee. Consider the claim alongside any eligible donations carried forward. Review the charitable-gift rules before arranging a gift of investments.

For medical expenses, compare eligible unreimbursed costs over a permitted 12-month period ending in the tax year. Costs already claimed cannot be claimed again. A family review can help identify the appropriate claimant and period under CRA's medical-expense rules.

Review the household result together

Prepare income estimates for both spouses or common-law partners. Review eligible medical claims, donations, tuition transfers, disability-related amounts, and child care under the rules for each claim. These amounts cannot all be allocated freely.

If you receive eligible pension income and meet the conditions, a joint election on Form T1032 can allocate up to 50% to a spouse or common-law partner. The election can affect individual credits and income-tested benefits. CPP, QPP, and Old Age Security payments are not eligible under these pension-splitting rules.

Flag property, crypto, foreign assets, and major changes

A property sale, a business sale, or a change in Canadian tax residency deserves an early review. Even a principal-residence sale must be reported. Keep the purchase, improvement, use, and sale records needed for real estate reporting.

Trading one crypto-asset for another can be a disposition even when no cash reaches your bank. Reconcile transactions and determine whether the result is capital or business income using CRA's crypto guidance.

If the combined cost of specified foreign property exceeded C$100,000 at any time in the year, review Form T1135. The test is based on cost, and exclusions and exemptions matter. CRA's T1135 questions and answers provide a useful starting point.

Finish with repayments, instalments, and a clear document list

Check your CRA statements for required Home Buyers' Plan or Lifelong Learning Plan repayments. Amounts designated as repayments are not deductible RRSP contributions, and a missed required repayment can be included in income.

Compare tax withheld and instalments paid with expected tax owing. Self-employed individuals and others with income that has little withholding should review the December instalment date and keep cash available for the remaining balance.

Update your address, marital status, and direct-deposit information with CRA when needed. Plan to file your return and, where applicable, your spouse's return even with little or no income, so eligible child benefit payments can continue.

Practical example

A Canadian employee receives a larger bonus in 2026, has unused RRSP room, and plans to buy a first home. They also withdrew $5,000 from a TFSA during the year.

The useful next step is to estimate tax, confirm RRSP and FHSA room, and decide how much cash can stay invested. An eligible FHSA contribution intended for a 2026 deduction needs attention before December 31. An eligible RRSP contribution may have the first-60-days window.

The $5,000 TFSA withdrawal generally returns as contribution room on January 1, 2027. Replacing it during 2026 requires enough other available room. A short review now turns several separate account decisions into one workable plan.

Written by

Bobby Molaie, CPA, MAccFounder and lead advisor at Finexa CPA Advisory

Primary sources

• CRA: RRSP retirement guide, RRSP deduction limits and contribution periods
• CRA: FHSA deductions and participation room
• CRA: TFSA contribution room
• CRA: RESP education grants and RDSP rules
• CRA: Capital losses and superficial losses
• CRA: Charitable gifts and medical expenses
• CRA: Employment expenses and pension income splitting
• CRA: Crypto-asset transactions, Form T1135, and real estate reporting
• CRA: Home Buyers' Plan repayments and Lifelong Learning Plan repayments
• CRA: 2026 self-employed tax dates and keeping child benefits up to date

Sources and guidance reviewed November 1, 2026. Confirm current rules and your eligibility before acting.