What is the deadline for RRSP contributions to reduce 2026 taxes?

You have until March 3, 2027 (60 days after year end) to make RRSP contributions that count for your 2026 tax return. However, some strategies like tax-loss harvesting, charitable donations, and TFSA contributions must be completed by December 31, 2026.

What is tax-loss harvesting and should I do it before year end?

Tax-loss harvesting is selling investments at a loss to offset capital gains. If you have investments that have lost value, selling them before December 31 lets you use the loss to offset capital gains from the same year, reducing your tax bill. Be aware of the superficial loss rule — you cannot rebuy the same investment within 30 days.

Should I make charitable donations before or after year end?

Donations must be made by December 31 to count for that tax year. You get a 15% federal credit on the first $200 and 29-33% on amounts over $200. Consider bunching multiple years of donations into one year to maximize the benefit of the higher-rate bracket. Donating appreciated securities avoids capital gains tax entirely.

What moves should I make in December for TFSA?

Withdraw any needed amounts before December 31 — the withdrawn room is restored on January 1. Then re-contribute in January with new room. Do NOT withdraw and re-contribute in the same year, or you will over-contribute and face a 1% monthly penalty.

Year-End Tax Planning Checklist Canada 2026 | Save on Taxes

Year-End Tax Planning Timeline

Deadline	Action
November	Review capital gains/losses; plan tax-loss harvesting
November-December	Make charitable donations
December 15	Final tax instalment payment due
December 31	Tax-loss harvesting trades must settle
December 31	Charitable donations must be received by charity
December 31	TFSA withdrawals (room restored Jan 1)
December 31	Medical expenses (12-month period)
December 31	RESP contributions (for current-year CESG)
December 31	Child turns 71: final RRSP contribution year
January 1	New TFSA contribution room available
March 3, 2027	RRSP contribution deadline for 2026 tax year

RRSP Strategies

Strategy	Details	Tax Savings
Maximize RRSP contribution	Contribute up to your limit (check on CRA My Account)	20-53% refund depending on bracket
Catch-up contributions	Use unused room from prior years	Same
Spousal RRSP	Contribute to spouse’s RRSP using your room	Income splitting in retirement
RRSP loan	Borrow to maximize contribution; repay with refund	Net benefit if refund covers loan
Employer RRSP matching	Ensure you’ve maximized employer match	100% instant return

RRSP Contribution Impact

Income	Marginal Rate (Ontario)	Contribute $10,000	Tax Refund
$55,000	29.65%	$10,000	$2,965
$80,000	31.48%	$10,000	$3,148
$110,000	33.89%	$10,000	$3,389
$160,000	43.41%	$10,000	$4,341
$220,000	48.35%	$10,000	$4,835

Tax-Loss Harvesting

Step	Details
1. Review portfolio	Identify investments with unrealized losses
2. Calculate gains	Add up capital gains realized in 2026
3. Sell losing investments	Before December 31 (allowing trade settlement)
4. Offset gains	Losses reduce taxable capital gains
5. Carry forward unused losses	Can carry back 3 years or forward indefinitely
6. Superficial loss rule	Cannot rebuy same or identical investment within 30 days

Example

Transaction	Amount
Capital gain from selling stock A	$15,000
Capital loss from selling stock B	-$10,000
Net capital gain	$5,000
Taxable capital gain (50% inclusion)	$2,500
Tax at 30% marginal rate	$750
Savings vs no harvesting	$2,250 less tax

Charitable Donation Strategies

Strategy	How It Works	Benefit
Donate appreciated securities	Transfer stocks/ETFs directly to charity	No capital gains tax + full donation receipt
Bunch donations	Combine 2-3 years of donations into 1 year	More of donation at 29-33% rate (over $200)
Corporate donations	Donate through corporation	Deduction against business income
Donor-advised fund	Large contribution now, distribute over time	Immediate tax receipt, ongoing giving

Donation Tax Credit Rates

Donation Amount	Federal Credit	Provincial Credit (Ontario)	Combined
First $200	15%	5.05%	20.05%
Over $200 (income under $235K)	29%	11.16%	40.16%
Over $200 (income over $235K)	33%	11.16%	44.16%

TFSA Year-End Moves

Action	Details
Withdraw before Dec 31	Room restored on January 1
Do NOT withdraw and re-contribute same year	Causes over-contribution (1%/month penalty)
Contribute new $7,000 room on January 1	Sets up tax-free growth for the full year
Max out TFSA if possible	Room is cumulative ($95,000+ if eligible since 2009)
Review TFSA investments	Rebalance if needed

Income Splitting Strategies

Strategy	Who Can Use It	Details
Spousal RRSP	Higher-earning spouse	Contribute to spouse’s RRSP; deduct from your income
Pension income splitting	65+ with eligible pension	Split up to 50% with spouse
CPP sharing	Both 60+	Equalize CPP payments
TFSA gifts	Any couple	Give spouse money to contribute to their TFSA
Family RESP	Parents	Both parents can contribute; income taxed in child’s hands
Prescribed rate loans	High/low income couples	Lend at CRA prescribed rate for investment

Medical Expenses

Rule	Details
Claim period	Any 12-month period ending in the tax year
Threshold	Lesser of 3% of net income or ~$2,759 (2025)
Lower-income spouse should claim	Lower threshold = more deductible
Common expenses	Dental, prescriptions, glasses, physiotherapy, fertility, travel for medical care
Private health premiums	Eligible (if not employer-paid)

RESP Contributions

Action	Details
Annual contribution for CESG	Contribute $2,500/child to receive $500 CESG (20% match)
Catch-up room	Government matches up to $1,000 CESG/year (on $5,000 contribution)
Deadline	December 31 for current-year CESG
Lifetime CESG	Up to $7,200 per child

Business/Self-Employed Year-End

Action	Details
Defer revenue	If possible, delay invoicing until January
Accelerate expenses	Buy business equipment/supplies before Dec 31
Immediate expensing	Up to $1.5M in eligible property (CCA)
Home office deduction	Calculate square footage percentage
Vehicle log	Complete your mileage log for the year
Pay salary to family members	If incorporated, reasonable salary to spouse/children

Complete Year-End Checklist

☐	Action	Deadline
☐	Review RRSP contribution room (CRA My Account)	Before March 3
☐	Maximize RRSP contributions	March 3, 2027
☐	Review portfolio for tax-loss harvesting	December 31
☐	Make charitable donations	December 31
☐	TFSA withdrawal planning	December 31
☐	RESP contribution ($2,500/child)	December 31
☐	Gather medical expense receipts	December 31
☐	Review employment expenses (T2200)	December 31
☐	Pay tax instalments	December 15
☐	Review insurance beneficiaries	Year-end
☐	Update estate plan if needed	Year-end
☐	Business: defer revenue, accelerate expenses	December 31
☐	Organize all receipts and documents	Before filing
☐	Book appointment with accountant	January-February