How tax season “regrets” are a great reminder of how to manage your tax exposure throughout the year – and help avoid filing pain next year

Every spring, the same regrets surface. You file your taxes, realize what you owe, and think: "If only I'd planned ahead." The difference between a stressful tax season and a smooth one often comes down to decisions made months earlier – decisions that can reduce your tax bill, maximize your savings, and give you peace of mind when the tax filing deadline arrives.

The good news? You have time to act. Whether you're preparing for your tax filing right now or are ready to position yourself for future years, the strategies below can help you avoid common mistakes, and reduce tax-related stress. Let's explore five (plus a bonus) key strategies successful investors use to take control of their tax outcomes.

1. Maximize your RRSP contributions – and know the deadline

One of the most common regrets among Canadian taxpayers is missing the RRSP contribution deadline. While most registered accounts require contributions by December 31, RRSPs offer a 60-day grace period¹, allowing you to contribute in the first 60 days of the following year, and still claim the deduction for the previous tax year.

The contribution deadline for the 2025 tax year has already passed (March 2, 2026). Looking ahead, your deadline to contribute for the 2026 tax year is expected to be March 1, 2027. The prescribed annual maximum RRSP contribution limit you can earn for 2026 is $33,810, or 18% of your previous year's earned income, whichever is lower.²

Many taxpayers wait until the last minute to contribute, only to discover they don't have the cash available or they've miscalculated their contribution room. Review your Notice of Assessment early, confirm your available room, and make your contribution well ahead of the deadline. Or, even better, set-up a regular investment plan, and reduce your stress by crossing off another item on your tax “To Do” list.

2. Consider the First Home Savings Account

For future homebuyers, the First Home Savings Account (FHSA) offers an exceptional advantage: similar to the upfront tax deduction of an RRSP with the tax-free growth and withdrawal of a TFSA. The annual contribution limit is $16,000 (if you have an $8,000 carry-forward from the year before), with a lifetime maximum of $40,000.³

You must contribute by December 31 to claim the deduction for that year. Many first-time buyers delay opening an account, not realizing that contribution room only begins accumulating once the account is opened, not from the year you turn 18.³

3. Harvest tax losses to offset capital gains

A turbulent market can create strategic opportunities. One of the most effective is tax-loss harvesting, where you sell an investment at a loss to strategically offset taxable capital gains elsewhere in your portfolio. Capital losses can be carried back three years or forward indefinitely to reduce taxable gains.⁴

However, you must be mindful of the superficial loss rule. If you, or a person affiliated with you owns the identical property on the 30th day after the settlement date of the disposition, the loss will be denied for tax purposes.⁴ This rule also applies to purchases made by your spouse, a corporation you control, etc., so careful coordination is essential.

With Canada's move to T+1 settlement in May 2024, your final trade of the year must occur at least one business day before December 31 to ensure the transaction settles within the calendar year. For 2026, your last trade should be completed by December 30.⁵

4. Manage your capital gains strategically

While harvesting losses is a defensive strategy, proactive management of your capital gains is equally important. Capital gains for individuals and corporations are taxed at an inclusion rate of 50%. If you are considering selling an investment with a significant gain, timing can matter. This is a complex area where personalized advice from your Investment Advisor can make a meaningful difference.

5. Make your charitable donations before December 31

Charitable donations made by December 31 can significantly reduce your tax bill. The federal charitable tax credit is 15% on the first $200, and 29% on amounts above $200 for most taxpayers.⁶ If your taxable income exceeds approximately $258,482 in 2026, you may qualify for a 33% federal tax credit on amounts over $200.⁷

Donating appreciated securities is often more tax-efficient than donating cash, as you eliminate the capital gains tax on the appreciation. However, be aware of the Alternative Minimum Tax rules introduced in 2024, which may reduce the effectiveness of very large donation strategies. Your Investment Advisor can help you navigate these changes.

6. (Bonus!) Don't forget political contributions (also before December 31)

Political contributions are often overlooked, yet they offer some of the most generous tax credits available. The federal political contribution tax credit provides 75% back on the first $400 you contribute, with a maximum credit of $650.⁸ Provincial credits vary but can be equally valuable.

Get some filing relief – take control of your tax outcomes

The difference between taxpayers who face unpleasant surprises in April and those who file with confidence often comes down to planning. The strategies outlined above are not complicated, but they do require action before key deadlines pass.

Whether you need help optimizing your registered account contributions, managing capital gains, or coordinating year-end tax strategies, expert advice helps ensure you're making the most of every opportunity.

Don't let tax season be a source of regret. Contact your Investment Advisor to build a personalized year-end plan that minimizes your tax obligations and maximizes your financial well-being.

Sources 

1.RBC Royal Bank of Canada. "RRSP rules and contribution limits." RBC Royal Bank . https://www.rbcroyalbank.com/investments/rrsp-rules-contribution-limits.html?msockid=31bda4d2e08664f822c0b135e17e6554.

2.RBC Royal Bank of Canada. "TFSA rules and contribution limits." RBC Royal Bank. https://www.rbcroyalbank.com/investments/tfsa-rules-contribution-limits.html?msockid=31bda4d2e08664f822c0b135e17e6554.

3.RBC Royal Bank of Canada. "First Home Savings Account (FHSA)." RBC Royal Bank. https://www.rbcroyalbank.com/investments/fhsa.html?msockid=31bda4d2e08664f822c0b135e17e655

4.RBC Global Asset Management. "Turning losses into tax advantages." RBC Global Asset Management. https://www.rbcgam.com/en/ca/learn-plan/investment-basics/turning-losses-into-tax-advantages/detail.

5.Shajani CPA. "Superficial loss rule: why your capital loss was denied." Shajani LLP. https://shajani.ca/superficial-loss-rule-2026-why-your-capital-loss-was-denied/.

6.KPMG Canada. "Tax facts 2025-2026." KPMG in Canada. https://assets.kpmg.com/content/dam/kpmgsites/ca/pdf/services/tax/tax-facts-2025-2026-en.pdf.coredownload.inline.pdf.

7.Fazzari + Partners LLP. "Tax alert: key 2026 CRA indexation adjustments." Fazzari + Partners. https://fazzaripartners.com/tax-alert-key-2026-cra-indexation-adjustments/.

8.TaxTips.ca. "Political contribution tax credit." TaxTips.ca. https://www.taxtips.ca/filing/political-contribution-tax-credit.htm.