Year-End Tax Planning 2026: What to Do Before December 31

Reviewed by HJ Wu & Company Inc. (CPA) on November 2, 2026. Editorial policy. General information, not advice.

Which dates matter most?

• December 15: last quarterly instalment of the year, if the CRA has asked you to pay that way.
• December 30 or 31: last day for most year-end moves. For selling investments, ask your broker for the last trade date that settles in 2026 (likely December 30).
• March 1, 2027: last day to put money in an RRSP and still count it for 2026.
• April 30, 2027: file and pay.

What should everyone look at?

• RRSP: the 2026 limit is $33,810 (it rises to $35,390 for 2027). If you turn 71 in 2026, the plan has to be wound up or converted by December 31. If your income is low this year and will be higher later, it can make sense to contribute now and claim the deduction in a later year. Try the TFSA vs RRSP calculator.
• TFSA: the limit is $7,000 for 2026. If you plan to take money out, do it before December 31: room only comes back on January 1 of the following year. Check your room with the TFSA contribution room calculator.
• FHSA: $8,000 a year, $40,000 for life, and contributions are deductible. Unused room carries forward, up to $8,000.
• RESP: contribute by December 31 to collect the government grant for the year.
• Donations: a gift must be made by December 31. The credit is larger above $200, and in the top federal bracket it is 33%. Gifts can be carried forward up to five years and pooled with a spouse.
• Medical expenses: you can use any 12-month period that ends in 2026. Add up what you paid and see if it’s worth claiming this year or next.
• Benefits and credits: the income tax calculator now shows the Canada Workers Benefit, the Canada Groceries and Essentials Benefit and the Canada Child Benefit as estimates.

What about couples and people 65 and older?

• Pension income splitting: from 65 you can allocate up to half of eligible pension, RRIF or annuity income to your spouse. It can lower your combined tax and your OAS clawback. The tax calculator finds the best split.
• The $2,000 pension credit: if you are 65 or older, make sure you have at least $2,000 of eligible pension income to claim the full amount.
• OAS clawback: if your income is near the $95,323 threshold, see what lowering net income could save with the OAS clawback calculator.
• RRIF: if the investments in your RRIF have fallen in value, you can take your minimum payment in kind rather than selling. The tax is still on the value at the time.

What about investments?

• Losses: selling a loser can offset gains from this year, last three years or future years. Don’t buy it back within 30 days, or the loss can be denied.
• Big gains: since 2024 the alternative minimum tax counts all of a capital gain and allows only part of your credits. A large sale can trigger it, so talk to us before you sell, not after. The tax calculator flags it.
• Where to hold what: interest is taxed most heavily, so it often fits better in a TFSA or RRSP; growth and eligible dividends are taxed more lightly outside them.

What about business owners and the self-employed?

• Salary and dividend mix: decide the mix for 2026 and for family members who really work in the business. Dividends to adult family members can fall under the tax on split income rules.
• Retaining profit in the company: it can defer tax, but passive investment income over $50,000 a year in the corporate group reduces the small business deduction.
• Equipment: new rules allow faster write-offs for some assets. Check the timing before you buy, and keep a vehicle logbook.
• Self-employed: you can contribute to an RRSP, and you may be able to deduct private health plan premiums. Remember the December 15 instalment.

How we can help

Year-end planning is quick when you do it in November and painful in April. We can run your numbers, check your room and deadlines, and look at your corporation too if you own one. See our tax services, use the free calculators, or get in touch at 604-636-1862 or inquiry@hjwucpa.com.

Key takeaway: A few moves made before December 31 (and a few made by March 1) can lower your 2026 tax, and most of them are free.

Official sources

• CRA: important dates for individuals
• CRA: taxes for individuals
• PwC Canada: Year-end tax planner (October 27, 2026)

Reviewed November 2, 2026. This is general information, not legal or tax advice. Rules and rates change, so confirm current requirements with the official sources above and speak to us about your situation.