Year-End 2026: 7 Tax Moves to Make Before December 31
December 31 is approaching fast: you have less than three months left to take the steps that will lower your tax bill for 2026. Canada's tax system runs on the calendar year, and many credits, deductions and grants hinge on very specific deadlines. Here are seven of them, with the real numbers verified today.
The 30-second recap
| # | Move | Deadline | Key 2026 figure |
|---|---|---|---|
| 1 | Contribute to your RRSP (for 2026) | March 2, 2027 | $33,810 limit, i.e. 18% of your 2025 earned income |
| 2 | Contribute to your FHSA | Dec. 31, 2026 | $8,000/year, $40,000 lifetime |
| 3 | Don't get caught by a TFSA withdrawal | Dec. 31, 2026 | Contribution room only returns on January 1, 2027 |
| 4 | Make your charitable donations | Dec. 31, 2026 | Combined credits of nearly 50% above $200 |
| 5 | Contribute to your children's RESP | Dec. 31, 2026 | CESG of 20%: up to $500/year per child |
| 6 | Bunch your medical expenses | Dec. 31, 2026 | The credit only covers the amount above a threshold |
| 7 | Convert your RRSP to a RRIF at age 71 | Dec. 31, 2026 | Mandatory in the year you turn 71 |
1. Contribute to your RRSP (you have until March 2, 2027)
This is the one deadline that spills into the next year: contributions made during the first 60 days of 2027 can be deducted against your 2026 income. Your personal limit is 18% of your 2025 earned income, up to $33,810 for 2026, plus any unused room from previous years — which carries forward indefinitely. The exact amount is on your CRA Notice of Assessment: check it before contributing.
Two safeguards to know: a $2,000 over-contribution buffer is allowed without penalty, but beyond that it's 1% per month on the excess. And every dollar contributed lowers that year's taxable income: with [our Quebec income tax calculator](/en/quebec-income-tax-calculator), you can estimate the actual tax saving of a $5,000 or $10,000 contribution at your income level.
2. Contribute to your FHSA before December 31
The FHSA combines the best of both worlds: deductible contributions like an RRSP, and tax-free withdrawals for a first home purchase. The limit is $8,000 per year, for a lifetime maximum of $40,000. Unused room from one year carries forward to the next, within those caps.
In practice: if you haven't contributed anything in 2026 and plan to buy in the coming years, every $8,000 contributed before December 31 saves you tax this year. Our [FHSA calculator](/en/fhsa-calculator) shows how much room you still have, and our [RRSP and FHSA guide](/en/blog/rrsp-fhsa) compares the two plans in detail.
3. The year-end TFSA withdrawal trap
The TFSA has a subtle rule many people discover the hard way: a withdrawal made in 2026 only restores your contribution room on January 1, 2027. If you withdraw $4,000 from your TFSA in October to cover holiday spending, then put it back in December without available room, the excess is penalized at 1% per month until you get new room.
The habit to adopt: if you expect to need cash late in the year, make the withdrawal and wait until January to re-contribute. And before any withdrawal, check your available room in CRA My Account (institution data there is complete after mid-February).
4. Make your charitable donations before December 31
Only donations made by December 31 qualify for the 2026 credit. Receipts must come from registered charities, and any unused portion of the credit can be carried forward for five years.
The rates are worth a look, because federal and provincial credits stack:
| Donation | Federal credit | Quebec credit | Total |
|---|---|---|---|
| First $200 | 15% → $30 | 20% → $40 | $70 |
| Next $800 (total $1,000 donation) | 29% → $232 | 24% → $192 | $424 |
| Total for a $1,000 donation | $262 | $232 | $494 |
A $1,000 donation therefore really costs you only $506 after credits. Another tip: pool both spouses' donations on a single return to clear the $200 threshold at the higher rate sooner.
5. Contribute to the RESP: $2,500 per child before December 31
The Canada Education Savings Grant (CESG) adds 20% on the first $2,500 contributed each year to a child's RESP — that's up to $500 per year, for a lifetime maximum of $7,200. The year's grant is only paid if the contribution is made before December 31 — and Quebec residents also qualify for the Quebec Education Savings Incentive (QESI).
Missed some years? Good news: unused CESG room carries forward, and you can catch up one missed year by contributing more the following year. Just make sure total contributions stay under the $50,000 lifetime cap per beneficiary.
6. Bunch your medical expenses
The medical expense credit only applies to the portion of expenses that exceeds a threshold tied to your net income. Practical consequence: if you have dental work, orthodontics or new glasses coming up, concentrate them in the same calendar year rather than spreading them out — and pay before December 31 to include them in 2026. For couples, it's often better for the lower-income spouse to claim the family's total medical expenses, since the threshold is income-based.
7. Age 71: convert your RRSP to a RRIF before December 31
If you turn 71 in 2026, your RRSP must be converted to a RRIF (or an annuity) no later than December 31, 2026 — after that date, the plan is deemed cashed out and fully taxed at once. It's also the time to check your Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments: the required annual minimum must be repaid within the first 60 days of 2027, otherwise the shortfall is added to your 2026 taxable income.
The December 31 checklist
In short: check your RRSP and TFSA room in CRA My Account, contribute to your FHSA, don't re-contribute a TFSA withdrawal before January, make your donations, put $2,500 in each child's RESP, bunch your medical expenses, and if you're 71, convert your RRSP. Set yourself a reminder for mid-December: that's when financial institutions are busiest, and a contribution landing on January 2 won't count for 2026.
Frequently asked questions
I'm short on cash in December: what should I prioritize?
Prioritize the irreversible December 31 items: the FHSA contribution (deductible for 2026) and charitable donations (credits lost if postponed). The RRSP contribution can wait until the first 60 days of 2027, and the RESP's CESG can be caught up the following year.
Can I contribute to my RRSP in January or February 2027 and deduct it for 2026?
Yes. Contributions made during the first 60 days of the calendar year can be deducted, at your choice, for the previous year (2026) or the current year (2027). This is the only exception to the calendar-year rule.
I withdrew money from my TFSA in November: can I put it back in December?
Only if you still have 2026 contribution room available. Otherwise, the room tied to your withdrawal only returns on January 1, 2027, and any re-contribution before then would be an excess penalized at 1% per month.
Do donations in kind (furniture, clothing) qualify for the credit?
Yes, provided you get an official receipt from a registered charity, issued at the fair market value of the donated goods. Keep all your receipts: Revenu Québec and the CRA can ask for them.
I didn't contribute to my FHSA in 2024 or 2025: is that room lost?
No. Your unused FHSA contribution room carries forward to the following year, within the limit of $8,000 of additional room per year and a $40,000 lifetime cap.
Where can I see my exact contribution room before contributing?
On your federal Notice of Assessment for the RRSP and FHSA, and in CRA My Account for the TFSA (data complete after mid-February). Always check before making a large contribution.