With the end of the year nearing, Canadians are now full steam ahead into the holiday season. But aside from shopping for gifts and gathering with loved ones, the end of the year also delivers some crucial financial deadlines.
Many tax credits, deductions and incentive programs are structured around the calendar year, which means missing these deadlines could leave you with a higher tax bill or less money saved. With this in mind, here are the top four financial moves you should make before we officially ring in 2026.
Tax-loss harvesting remains one of the most underused strategies available to investors — especially those holding non-registered accounts. If you sell an investment for less than its adjusted cost base, you trigger a capital loss, and you can use this to reduce your capital gains tax (1).
Under the Income Tax Act, capital losses can be used to offset capital gains in the same tax year, reducing the amount of capital gains you must report. And you can carry net capital losses back up to three years, and forward indefinitely to offset gains in future years.
For example, let’s say you sell one stock from your non-registered account, incurring a $13,000 capital loss. You realize a $10,000 in capital gains elsewhere in your portfolio for the same year, so you apply your net capital loss of $3,000 against capital gains in prior or future years, effectively reducing your tax bill.
Since tax-loss harvesting depends on realizing losses before December 31 of any year, investors who want to apply losses for the 2025 tax year will need to complete all trades before year-end. But stay mindful of Canada’s superficial loss rule, which prevents your from claiming a capital loss if you (or your spouse, or a corporation you control) buy back the same or identical capital property within 30 days before or after the sale.
If you invest in a non-registered account, reviewing your portfolio before year-end can save you money. The Canadian tax rules that allow you to carry capital losses back for three years or forward indefinitely give you flexibility to smooth out your tax burden over time. Even one strategic sale can significantly reduce the tax you owe, as long as you act before December 31.
A Tax-Free Savings Account (TFSA) is one of the most flexible and powerful investment tools available to Canadians. TFSA contributions are made with after-tax dollars but your investment grows tax-free, and you can make withdrawals at any time without penalty for any reason. This combination of flexibility and tax-free growth give the TFSA a unique edge over other investment accounts.
Despite these advantages, many Canadians aren’t using their TFSAs to their full potential. According to a TD Bank survey, 39% of TFSA holders say their money isn’t actively invested, but is sitting in cash rather than higher-growth investments like ETFs or mutual funds, potentially limiting the accounts growth opportunities (3).
If you only use your TFSA as a cash-holding account, you’re likely leaving long-term growth behind. You’d most benefit from using your TFSA as an investment vehicle rather than strictly a savings account — regular contributions combined with thoughtful investing can dramatically boost your tax-free wealth over time.
The deadline to add funds to your TFSA is December 31.
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
Most Canadians don’t track their net worth, even though it is one of the simplest ways to understand your financial wellness. While there are no national surveys measuring how many Canadians know their net worth, an FP Canada report found that only 43% of Canadians felt knowledgeable about their personal finances (4), suggesting that many weren’t keeping close tabs on key metrics like net worth.
Calculating your net worth isn’t complicated — it’s simply the difference between all of your assets (home equity, RRSPs, TSFAs, investments, savings, etc.) and liabilities (car loans, credit card balances, mortgages, student loans, and other debts). The end of the year is the ideal time to run these numbers, since account balances, investment values and spending patterns are simpler to view all at once alongside the debt you may have accumulated over the course of the year.
Knowing your net worth gives you a clear baseline for the year ahead. It helps you see your progress, identify problem areas and make more informed decisions about saving, investing or paying down debt — especially in a high-cost environment where every dollar counts.
Generally, the deadline for contributions to your Registered Retirement Savings Plan (RRSP) for the 2025 tax year is March 2, 2026. This date gives Canadians a bit of a buffer to make final contributions that count toward their 2025 taxes.
Your annual RRSP contribution room is 18% of your earned income from the previous year, up to the annual limit set by the Canada Revenue Agency (CRA). For 2025, this maximum is $33,810 (5).
Regardless of the limit, you may have some unused contribution room to carry over from previous years. This is a great catch-up opportunity to maximize your contributions, especially for Canadians nearing retirement. You can find your personal contribution limit on your most recent notice of assessment under the RRSP Deduction Limit Statement (6).
Kudos to you if you also have access to an employer match program, which matches between 3% and 6% of an employee’s salary. For example, if an employee’s annual salary is $120,000 and they contribute 10% ($12,000) to a group RRSP, their employer could match 3% ($3,600), 5% ($6,000) or even 6% ($7,200). Failing to contribute means leaving “free money” on the table — something that can significantly impact your long-term retirement growth.
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Canada (1, 2, 5, 6), TD Stories (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
