2026 year-end tax checklist — actions before December 31
December 31 is the hard deadline for most 2026 tax actions. TFSA and FHSA contributions, charitable donations, tax-loss selling, and business expense timing all require action before midnight. The RRSP deadline is the exception — contributions made in the first 60 days of 2027 (by March 2, 2027) count for the 2026 tax year.
Use the interactive checklist below to track what you've done. Progress is saved in your browser and persists between visits.
On this page
Interactive checklist
Tax-loss selling detail
Tax-loss selling means deliberately realizing capital losses in non-registered accounts before December 31 to offset capital gains you realized earlier in 2026. The net loss reduces the amount subject to the capital gains inclusion rate.
Settlement timing: Canadian equities settle T+1. To ensure a sale settles on or before December 31, you must execute the trade on or before December 30. Check with your broker for the exact last day — some brokers publish year-end cutoffs in December.
Superficial loss rule: if you (or an affiliated person — spouse, corporation you control) buy back the same security within 30 calendar days before or after the sale, the capital loss is deemed a "superficial loss" and is denied. The denied loss is added to the adjusted cost base of the repurchased security.
What you can immediately buy instead: a similar-but-not-identical security. For example, sell one Canadian bank ETF and immediately buy a different Canadian bank ETF — you maintain your sector exposure without triggering the superficial loss rule.
Net capital losses: if your total capital losses in 2026 exceed your capital gains, the net loss cannot be applied against other income in 2026. It can be carried back up to 3 years (to offset prior-year capital gains) or carried forward indefinitely.
For 2026, the inclusion rates are 1/2 on the first $250,000 of annual net capital gains per individual, and 2/3 on net gains above $250,000. Tax-loss selling reduces net gains subject to these rates. Verify the legislative status of the 2/3 rate at canada.ca before relying on it for large transactions.
Registered account deadlines
| Account | 2026 limit | Deadline |
|---|---|---|
| TFSA | $7,000 (plus any unused carry-forward) | December 31, 2026 |
| FHSA | $8,000 (plus unused carry-forward up to $16,000 max) | December 31, 2026 |
| RESP | No annual limit (lifetime $50,000/beneficiary) | December 31 to earn 2026 CESG |
| RRSP | $33,810 (or 18% of 2025 earned income) | March 2, 2027 |
TFSA over-contributions are penalized at 1%/month on the excess. Verify your available room in CRA My Account before contributing — the room shown reflects contributions and withdrawals reported to CRA, which may lag the current year.
Charitable donations
Donations must be made to a registered charity (CRA-registered, with a valid BN ending in RR0001 or similar) by December 31 to qualify for a 2026 tax credit. Unlike RRSP contributions, there is no 60-day grace period for donations.
Federal credit: 15% on the first $200 donated in a year, 29% on amounts above $200. Most provinces add a parallel two-tier structure on top.
Carrying forward donations: unused donations can be carried forward up to 5 years. If your income is unusually high in 2026, it may be worth donating more than you'd planned — the credit value is the same regardless of income level, but your marginal rate affects how valuable the credit is relative to other deductions.
Donating appreciated securities is the highest-leverage version: the capital gain on publicly-listed securities donated directly to a registered charity is fully exempt from tax, and you receive a donation receipt for the fair market value. Cash giving from a non-registered account with embedded gains is the least efficient approach — you pay capital gains tax first, then donate the after-tax cash.
Self-employed year-end moves
Q4 instalment (December 15): the fourth and final quarterly instalment for 2026 is due December 15, not December 31. Paying late triggers daily compound interest from the due date.
Accelerate deductible expenses before December 31: if you have business expenses planned for early 2027, pulling them forward to December can reduce 2026 net self-employment income — particularly valuable if your income is unusually high this year. Common candidates: prepaid software subscriptions, advertising commitments, professional development, equipment purchases.
Defer December invoices to January if your income is unusually high and you expect lower income in 2027. The tax on deferred income is deferred one year — a real but time-limited benefit. Do not defer income to a year when you expect higher income.
For the instalment calculator and full deductible expense breakdown, see the Self-Employed guide.
Common mistakes
Mistake
Assuming the RRSP deadline is December 31
RRSP contributions made in the first 60 days of 2027 (by March 2, 2027) can be deducted on your 2026 return. There is no RRSP emergency on December 31 — TFSA and FHSA are the December 31 deadlines for registered accounts.
Mistake
Selling a losing position after the settlement cutoff
Canadian equities settle T+1. A sale on December 30 settles December 31 — the last valid day. A sale on December 31 settles in 2027 and does not offset 2026 capital gains. Verify your brokerage's specific cutoff.
Mistake
Violating the superficial loss rule by repurchasing within 30 days
If you sell a security at a loss and repurchase the same security (or an affiliated person does) within 30 days before or after the sale, the capital loss is denied. Wait 30+ days, or immediately buy a similar-but-not-identical security to maintain exposure.
Quick wins
Quick win
Schedule your year-end review in early December, not late December
Decisions made December 1 give you a month of flexibility. Decisions made December 29 run into brokerage cutoffs, slow banking, and year-end processing delays. Start early.
Quick win
Donate appreciated securities instead of cash
Donating publicly-listed securities with unrealized gains directly to a registered charity eliminates the capital gains tax entirely — and you still receive a receipt for the full fair market value. This is consistently one of the highest-leverage tax moves available.
Quick win
Confirm your province of residence on December 31
Your province of residence on December 31 determines which provincial tax rates apply to your entire 2026 income. If you moved provinces in 2026, confirm you know which province to use — and that your address in CRA My Account reflects the correct province.
FAQ's
What is the last day to make 2026 charitable donations?
Charitable donations must be made by December 31, 2026 to be claimed on your 2026 T1 return. There is no grace period — unlike RRSP contributions, there is no 60-day window into the new year. Online donations made by 11:59 PM on December 31 typically qualify; verify with the charity. Cheques must be dated and mailed by December 31 — a postmark alone may not be sufficient for donations made very close to year-end. Donations made between January 1 and March 1, 2027 can be claimed on either the 2026 or 2027 return only if they were physically made in 2026 with the receipt dated in 2026.Can I do tax-loss selling and immediately rebuy the same stock?
No — the superficial loss rule denies the capital loss if you (or an affiliated person) buys the same or identical security within 30 days before or after the sale. The denied loss is added to the ACB of the repurchased security instead of being usable in the current year. "Identical security" means shares of the same class of the same company — AAPL is identical to AAPL. However, you can immediately buy a *similar but not identical* security to maintain exposure: for example, sell one Canadian equity ETF and immediately buy a different ETF tracking a different index or from a different provider. The two ETFs must differ enough that CRA would not treat them as identical — two ETFs tracking the exact same index from different providers may still be considered identical.Is the RRSP contribution deadline really in 2027?
Yes. RRSP contributions made in the first 60 days of 2027 — on or before March 2, 2027 — can be claimed on your 2026 T1 return. This is a long-standing feature of the RRSP rules. You can make the contribution in January or February 2027 and deduct it on your 2026 tax return filed in April 2027. However, TFSA, FHSA, and RESP contributions must be made by December 31, 2026 to count for 2026 — those accounts have no 60-day grace period. The RRSP exception is unique.What happens to my TFSA if I don't use the full $7,000 in 2026?
Unused TFSA contribution room carries forward indefinitely. If you don't contribute the full $7,000 in 2026, that unused room adds to your cumulative room and is available in 2027 and beyond. There is no penalty for not contributing and no deadline pressure from a room perspective. However, the tax-free compounding opportunity is permanently lost for 2026 — money that could have grown tax-free inside the TFSA grew tax-exposed outside instead. The carry-forward preserves your room but does not recover the tax-free growth years you didn't use.