Plan your 2026 Canadian taxes

Frequently asked questions

• What changed for 2026 Canadian taxes?

  The most significant federal change is that the bottom marginal rate dropped from 15% to 14%, saving up to $580 for most taxpayers. The RRSP dollar limit rises to $33,810 (up from $32,490). CPP contributions continue under the two-tier system, with the second ceiling at $85,000. The TFSA annual limit remains $7,000 for the third consecutive year. BC paused inflation indexation on its brackets from 2027–2030.
• Should I prioritize TFSA or RRSP in 2026?

  If your marginal rate is 26% or higher, the RRSP deduction is typically worth more — you get a refund now and the money grows tax-deferred. If your rate is low (under 26%), or you expect to be in a higher bracket in retirement, the TFSA often wins because withdrawals never count as income. Many Canadians benefit from contributing to both: RRSP for the immediate refund, TFSA for tax-free flexibility. The FHSA stacks with RRSP for first-time buyers.
• What's the RRSP contribution deadline for the 2026 tax year?

  Contributions made in the first 60 days of 2027 — on or before March 2, 2027 — can be applied to your 2026 tax return. Contributions made after that date count toward 2027. You can still contribute after the deadline; your room carries forward indefinitely, but the deduction applies to the year you claim it.
• Can I use both the FHSA and the RRSP Home Buyers Plan?

  Yes. The FHSA ($8,000/year, $40,000 lifetime) and the RRSP Home Buyers' Plan ($60,000 withdrawal limit) can be stacked for the same qualifying home purchase. Combined, a single buyer can access up to $100,000 of registered savings tax-advantaged — $40,000 from an FHSA plus $60,000 via the HBP. Couples can double that to $200,000.
• What year-end moves should I make before December 31?

  Before December 31: make TFSA contributions to use this year's room (there is no 60-day grace period for TFSA); review tax-loss selling opportunities in non-registered accounts; make charitable donations if you want to claim them on 2026 return; top up FHSA if room remains. After January 1, 2027: the 60-day RRSP window opens — contributions made by March 2, 2027 apply to 2026 taxes.
• How does CPP2 affect my 2026 tax return?

  CPP2 second-tier contributions (on earnings between $74,600 and $85,000) are deductible from income, not just a tax credit like CPP1 contributions. This means CPP2 reduces your taxable income dollar-for-dollar. Employees who earn above $74,600 can deduct the full CPP2 contribution on line 22215 of their T1 return.