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What can I legally do to pay less tax this year?
Most of the tax people overpay comes from a handful of choices: which account a contribution goes into, which year a deduction is claimed, which spouse claims a credit, and whether a loss is realized before December 31. Each is a documented CRA rule. The tax-saving strategy guides walk through each one with 2026 figures.
Worth knowing before you start
- An RRSP deduction saves tax at your marginal rate, and you choose the year you claim it. Contribute now, deduct in the higher-income year. The 2026 RRSP dollar limit is $33,810. The TFSA limit is $7,000 and the FHSA allows $8,000 a year.
- Half of a capital loss offsets capital gains this year, in the three previous years, or in any future year. Buy the same investment back within 30 days and the loss is denied.
- Medical expenses count only above 3% of net income, so the lower-income spouse usually claims the family total. Pension income can be split up to 50% between spouses, but the best split is often less.
- A small business pays 9% federal tax on its first $500,000 of active income. The saving is deferral on profit left inside the company. Dividends to family members are taxed at the top rate unless an exclusion applies.
- OAS is clawed back at 15 cents per dollar of income above $95,323 (2026). Moving income between spouses or years can keep you under it.
The steps, in order
- 1 What does an RRSP contribution save me?The tax saved by any contribution, and the amount that drops you a bracket.Open the RRSP refund calculator →
- 2 Which account should the money go in?The one rate that decides RRSP versus TFSA, and when the FHSA wins.Open the RRSP vs TFSA vs FHSA calculator →
- 3 What will my gain cost, and what does a loss remove?Tax on a sale at your marginal rate, and the loss that cancels it.Open the Capital gains tax calculator →
- 4 Work from home? What can I deduct?The share of rent, utilities and internet you can claim as an employee or self-employed, and the tax it saves.Open the Home-office deduction calculator →
- 5 Incorporated? Salary, dividends or a mix?What each way of paying yourself leaves in your pocket, and what stays in the company.Open the Salary vs dividends calculator →
- 6 Can my mortgage interest become deductible?What re-borrowing each principal payment to invest does to your net worth, and the return you need to come out ahead.Open the Smith Manoeuvre calculator →
- 7 Retired? How much pension should we split?The split from 0% to 50% that saves your household the most, with the OAS clawback scored on both sides.Open the Pension income splitting calculator →
- 8 Will my OAS be clawed back?How far over the threshold you are and how much income to move to stay under it.Open the OAS clawback calculator →