Year-end tax planning: Key strategies and important dates

Important dates and reminders in 2026

January 30: Prescribed interest payments due on prescribed rate loans.

March 2: RRSP contribution deadline for the 2025 tax year is the first 60 days of 2026. March 1 is a Sunday, so the deadline is March 2.

April 30: Tax return deadline for individuals without self-employment income.

June 15: Tax return deadline for individuals (and their spouses) with self-employment income. Taxes owing are still due by April 30. Second quarterly income tax instalment is also due on this date.

Note that there are alternate filing deadlines for trusts, corporations, and deceased individuals.

September 15: Third quarterly income tax instalment is due.

December 15: Fourth quarterly income tax instalment is due

2026 contribution limits

• RRSP limit: Lesser of $33,810 or 18% of earned income for the previous year
• TFSA annual limit: $7,000
• FHSA annual limit: $8,000

Important note for tax-loss selling

If you sell investments at a loss to reduce your taxable gains, you have until December 30, 2025 to do so.

Common tax credits and deductions

Credits

Charitable donations: A non-refundable credit on the eligible amount of donations up to 75% of net income for the current tax year. There are additional tax benefits associated with donating securities in-kind.

Disability tax credit: A non-refundable credit to help individuals with a disability or their supporting family member reduce their taxes.

Medical expenses: Eligible medical expenses exceeding 3% of net income or $2,834 (whichever is higher) can be claimed as a non-refundable credit for the taxpayer, their spouse, or children under 18.

Pension income amount: A non-refundable credit for up to $2,000 of eligible pension income. You can also split eligible pension income with a spouse or common-law partner.

Age amount: A non-refundable credit for individuals aged 65 or older at the end of the tax year.

Deductions

Home office expenses: Eligible home office expenses can be deducted from total income. They include rent, utilities (electricity, heat, water), condo fees (utility portion), internet, and minor repairs.

RRSP contributions: Contributions to an RRSP in 2025 or within the first 60 days of 2026 can be deducted from total income, up to the RRSP deduction limit. Unused contributions can be carried forward. Individuals who turn age 71 in 2025 must make their contribution before the end of the calendar year.

FHSA contributions: Up to $16,000 of contributions to a First Home Saving Account can be deducted from total income (if you didn’t contribute anything the prior year and had opened the FHSA). Note: FHSA contributions are based on the calendar year and the first 60-days rule for RRSP contributions does not apply.

Interest deductibility: Interest paid on funds borrowed to earn income from a business or property can be deducted from total income provided certain conditions are met.

Childcare expenses: Eligible childcare expenses can be deducted from total income. There are rules with respect to who can claim the deduction if both the individual and their spouse or common-law partner are eligible.

For personalized advice and a more in-depth discussion on year-end tax planning, please speak with your Manulife Wealth advisor.