Year-End Tax Planning Checklist for Canadians

December is your last chance to take actions that affect your current tax year. Once January 1 hits, many opportunities disappear. Here’s a practical checklist to review before year-end.

Contributions and Withdrawals

☐ Top up your TFSA. Annual limit: $7,000 for 2026. Contributions must be made by December 31.
☐ RRSP contributions. You have until early March of the following year for RRSP, but contributing before December 31 means the investment starts growing tax-sheltered sooner.
☐ FHSA contributions. $8,000 annual limit. Must be made by December 31.
☐ RESP contributions. $2,500 per child to max the CESG grant for the year.
☐ RDSP contributions. If eligible, contribute to trigger government matching bonds and grants.

Income and Deductions

☐ Defer income if possible. If you expect lower income next year, delay invoicing (self-employed) or defer bonus payments to January.
☐ Accelerate deductions. Prepay professional dues, make charitable donations, or pay deductible expenses before December 31.
☐ Charitable donations. Pool donations on one spouse’s return to maximize the credit. Donations of appreciated securities eliminate the capital gain.
☐ Medical expenses. Gather receipts for the 12-month claim period. Consider timing large expenses before year-end.

Investment Portfolio

☐ Tax-loss harvesting. Sell losing positions to offset capital gains. Mind the 30-day superficial loss rule.
☐ Capital gains planning. If you have large unrealized gains, consider whether to realize them this year or next based on your expected income.
☐ Rebalance inside registered accounts. Selling and buying inside TFSA/RRSP has no tax impact, so do your rebalancing there.

Family and Household

☐ Review CCB eligibility. RRSP contributions reduce net income, which can increase CCB payments.
☐ Spousal RRSP timing. Remember the 3-year attribution rule before making new contributions.
☐ Tuition transfers. If your child has unused tuition credits, decide whether to carry forward or transfer to a parent.
☐ Pension splitting election. For retirees, plan the optimal split percentage with your spouse.

Business Owners

☐ Salary vs dividend mix. Review the optimal combination for your corporate year-end.
☐ Prepay expenses. Business expenses paid before year-end are deductible in the current year.
☐ Capital asset purchases. Buying equipment or vehicles before year-end starts CCA deductions sooner.
☐ GST/HST review. File any outstanding returns and ensure ITCs are claimed.

Administrative

☐ Update CRA My Account. Ensure address and direct deposit details are current.
☐ Review instalment payments. If you pay quarterly instalments, confirm you’ve paid enough to avoid interest.
☐ Organize receipts. Digital or paper, get them in one place now. It makes filing in the spring painless.

Want a personalized year-end tax review? Book a free consultation with FinGems.