Most Canadians think about taxes in April. The problem with that approach is that by April, the tax year is already closed — you’re simply reporting what happened, not changing it. The window to actually reduce your tax bill is the period between now and December 31.

As a CPA, I’ll tell you that the clients who come to us in September and October consistently achieve better outcomes than those who call in March. The strategies below are not complicated, but they are time-sensitive. Here are ten moves worth reviewing before the year closes.

1. Review Your RRSP Room — Even If You Plan to Contribute in March

The RRSP contribution deadline for the 2026 tax year extends to March 2, 2027, so you technically have time. But year-end is the right moment to review your available room and plan the amount. Your contribution limit for 2026 is 18% of your 2025 earned income, up to a maximum of $33,810 — and any unused room from prior years carries forward and stacks on top of that.

The reason to think about this now: if you’re expecting a bonus, a large investment gain, or any income spike before December 31, the value of an RRSP deduction increases at higher income levels. Knowing your room in advance lets you size the contribution strategically rather than reactively.

2. Top Up Your TFSA Before Year-End

The 2026 TFSA annual contribution limit is $7,000 — unchanged for the third consecutive year. If you haven’t maximized your 2026 contribution room, any unused amount from 2026 carries forward to 2027 permanently, so there’s no urgency on that front.

However, if you made TFSA withdrawals earlier in 2026, those amounts are only restored to your contribution room on January 1, 2027. Topping up now — before triggering unnecessary over-contribution exposure — is a cleaner approach. For anyone who has been TFSA-eligible since 2009 and has never contributed, your cumulative room in 2026 reaches $109,000.

The TFSA is especially powerful in this environment: growth, dividends, and capital gains inside the account are completely sheltered from tax, now and on withdrawal.

3. Harvest Capital Losses Before December 30

If you hold non-registered investments that are sitting at a loss, you have until December 30, 2026 to sell them and realize a capital loss that applies to this tax year. (With Canada’s T+1 settlement standard, trades executed on December 31 will settle in 2027 and miss the 2026 deadline.)

Capital losses can be used to:

• Offset capital gains realized earlier in 2026
• Be carried back up to three prior tax years to recover taxes paid on past gains (using CRA Form T1A)
• Be carried forward indefinitely to offset future gains

The inclusion rate for capital gains in 2026 remains at 50% for individuals — meaning only half of your net capital gain is taxable. A harvested loss reduces that taxable amount dollar-for-dollar.

One important caution: the superficial loss rule. If you — or your spouse, or a corporation you control — repurchases the same or an identical security within 30 calendar days before or after the sale, the CRA will deny the loss. That’s a 61-day window to avoid during which you cannot hold that position. You can purchase a similar but not identical security in the interim to maintain market exposure.

Tax-loss harvesting does not apply inside registered accounts. Losses inside a TFSA or RRSP are not recognized by the CRA and cannot be applied against anything.

4. Contribute to Your Child’s RESP Before December 31

If you have children under 18 with a Registered Education Savings Plan, contributing at least $2,500 per child before December 31 triggers the Canada Education Savings Grant (CESG) — a federal grant of 20% on the first $2,500 contributed annually, worth up to $500 per child per year.

If you have unused CESG room from a prior year, you can contribute up to $5,000 and capture a $1,000 grant. However, only one year of catch-up room can be used per calendar year.

Miss the December 31 deadline and you cannot retroactively claim the grant for the current year. It is genuinely a “use it or lose it” deadline — one of the few in the tax system that is entirely unforgiving.

5. Open an FHSA Before December 31 (Even If You Don’t Contribute)

The First Home Savings Account (FHSA) allows first-time homebuyers to deduct contributions, grow savings tax-free, and withdraw tax-free for a qualifying home purchase. The annual contribution limit is $8,000, with a lifetime maximum of $40,000.

Here’s the critical planning note: unused FHSA contribution room only carries forward if the account is already open. If you open your FHSA before December 31, 2026, you preserve your $8,000 of 2026 room — even without making an immediate contribution. If you wait until 2027 to open the account, that 2026 room is gone permanently.

If you or your adult children are prospective first-time buyers, opening the account before year-end is a low-effort, high-value move.

6. Make Charitable Donations Before December 31

Charitable donations must be made by December 31 to generate a federal tax credit for the current tax year. The federal credit structure is tiered: 15% on the first $200 of annual donations, and 29% (or 33% for the highest income earners) on amounts above $200. Provincial credits are added on top.

Donations can be carried forward up to five years, so if this isn’t your highest-income year, it may be worth deferring a large donation to a future year when the credit is worth more to you.

One strategy that is increasingly popular and frequently underutilized: donating appreciated publicly-listed securities directly to a registered charity. When you donate securities in-kind, the capital gain is eliminated entirely, and you receive a donation receipt for the full fair market value. This is significantly more tax-efficient than selling the security, paying capital gains tax, and then donating the after-tax proceeds.

7. Review Income-Splitting Arrangements and Prescribed-Rate Loan Interest

If you have a prescribed-rate loan in place for income-splitting purposes — where you lend funds to a lower-income family member who invests them — the borrower must pay the annual interest to you by January 30, 2027 for the 2026 tax year. If this interest payment is missed even once, the income attribution rules collapse, and the investment income is attributed back to you and taxed at your higher rate. This applies going forward, not just for the missed year.

If you’ve been using this strategy, review the loan documentation and confirm the interest payment is scheduled before the January 30 deadline.

8. Time Business Income and Expenses Strategically

For self-employed individuals and business owners, December 31 is the last day to influence your 2026 taxable income. Two common approaches:

Deferring income: If you expect to be in a lower tax bracket in 2027 — or if this has been an unusually high-income year — consider delaying invoicing for work completed in late December until January. Income is generally recognized when it is earned, but professionals with flexibility in billing timing can use this to shift income across tax years legitimately.

Accelerating deductions: Purchase equipment, supplies, or prepay eligible business expenses before December 31 to claim the deduction in 2026 rather than 2027. Capital Cost Allowance (CCA) on depreciable assets is generally calculated based on property owned at year-end, so timing acquisitions before the close of the year can bring forward the tax benefit.

For incorporated business owners, bonuses declared before corporate year-end are deductible when paid within 180 days. The optimal split between salary and dividends requires tax integration modeling specific to your situation — this is worth a conversation with your accountant now, not in March.

9. Review Your Instalment Obligations

If you pay tax by instalments, your final instalment for the 2026 tax year is due December 15, 2026. Missing or underpaying instalments triggers CRA interest charges — and unlike many provisions, this interest is not deductible.

If you’ve had a lower-income year than expected, you may be able to reduce your December instalment based on your actual 2026 earnings rather than the prior-year estimate. Conversely, if 2026 has been higher-income than expected, review whether you’ve been underpaying all year — a large catch-up may be warranted before December 15 to minimize interest.

10. Talk to Your Accountant Now — Not in April

This one isn’t a strategy. It’s the prerequisite for all the others.

Every item on this list requires action before December 31. Reviewing your situation in April means reviewing a locked year. The planning questions that matter most — How much have you earned? What gains have you realized? Are there losses to harvest? What’s your expected income in 2027? — have answers right now that allow you to optimize. In April, they’re historical facts.

If you haven’t had a year-end tax planning conversation yet, September is an ideal time to start. The strategies that are most impactful take some lead time to implement, and the December 31 deadline has a way of arriving faster than expected.

Key December 31 Deadlines at a Glance

The strategies outlined in this article are general in nature and do not constitute professional tax advice for your specific circumstances. Tax laws are subject to change. Please consult a qualified CPA before implementing any of the above. Our team is available now for year-end tax planning consultations — contact us to book an appointment.

Photo by Marissa Grootes on Unsplash