Mar. 6, 2026 "Boost portfolio returns by keeping tax dollars invested beyond this tax season": Today I found this article by Dale Jackson on BNN Bloomberg:
There is a risk-free way for investors to boost returns from their retirement portfolios;
keep more tax dollars invested
and compounding over time.
If you’re sitting down with a tax professional ahead of the April 30 tax filing deadline, it could be worthwhile to discuss your tax strategy beyond the current fiscal year.
A recent study conducted by IG Wealth Management found 36 per cent of Canadian tax filers felt they were not doing their taxes efficiently and were leaving money on the table.
There are four basic tax perks available to average investors that can be
utilized
and coordinated
for maximum savings.
Reinvest your RRSP refund
Another recent survey from TD Bank found 57 per cent of Canadians, expecting a tax refund from a Registered Retirement Savings Plan (RRSP) contribution, planned to invest it.
About 76 per cent of Gen Z (born between 1997 and 2012) respondents also planned to invest their refunds,
which allows more time for that extra cash to compound in investments.
The RRSP is a great retirement savings tool because
contributions can be deducted from your income to lower the previous year’s tax bill,
and grow tax-free in investments for decades.
The biggest savings come to those with
big incomes who would normally be taxed at a high marginal rate.
As an example;
if your top rate is 40 per cent,
your refund will be about 40 per cent of your contribution.
Reinvesting your refund in your RRSP will not only
add to the total amount compounding in investments over time,
but will also generate further refunds.
Balance RRSP contributions with a TFSA
There are limits to how much you can contribute to your RRSP but even they can be too much.
Unfortunately,
contributions and all the returns they generate over the years are fully taxed
according to the going marginal tax rates when they are withdrawn.
You could be the victim of your own success
- and even have some of your Old Age Security (OAS) benefits clawed back
- if your annual RRSP withdrawals are taxed at a higher rate than the original contribution.
That’s when you need to plan into the future
and determine how much of your savings and RRSP refunds
should be channeled into your Tax Free Savings Account (TFSA).
Unlike RRSP contributions,
TFSA contributions can not be deducted from income but they
- along with any investment returns they generate
- are not taxed when they are withdrawn.
The only exception are dividends from U.S. equities.
You can adjust that balance according to each year’s income
and over time as your retirement goals become clearer,
but the ideal tax situation would allow you to draw income from your RRSP at a low marginal rate
and top up any additional income from your TFSA.
Capital gains exemption in non-registered accounts
There are also contribution limits on TFSAs,
but there are ways to incorporate investments in non-registered accounts into your tax strategy.
The biggest tax advantage outside of a TFSA or RRSP is
the 50 per cent capital gains exemption,
which only taxes half of the gains on stocks
or other equity investment when they are sold.
The annual threshold is limited to $250,000.
While a 50 per cent capital gains exemption is not as good as a 100 per cent exemption in a TFSA,
investors in non-registered accounts can also benefit from market losses.
Tax-loss selling permits the use of equity losses
to recoup capital gains taxes already paid in the past three years
or apply them against future capital gains.
The capital gains exemption also applies to the sale of company shares from employer share plans
and most other equities purchased
or obtained outside a registered account.
Dividend tax credit
If you’re looking for a tax perk with a ‘buy Canadian’ theme,
credits can also be applied to dividend income from
eligible Canadian corporations
held in non-registered trading accounts.
Dividend tax credits are Canada’s way of reducing what is known as
“double taxation” by offsetting dividend payouts already taxed to the corporation.
Mar. 13, 2026 "Canada tax brackets 2026: What’s changed and how to pay less": Today I found this article by Christopher Liew on BNN Bloomberg:
Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.
If you’ve noticed your paycheque looking slightly different in 2026, you’re not imagining things.
This year marks the first time the federal government’s
reduced 14 per cent tax rate on the lowest bracket applies for a full calendar year.
Combined with inflation adjustments across all five brackets,
most Canadians will keep a little more of their income this year.
Below, I’ll break down the 2026 federal tax brackets,
explain how marginal tax rates actually work,
and share some strategies you can use to lower your tax bill.
What changed for 2026
The headline change is the lowest federal income tax rate dropping to 14 per cent, down from 15 per cent. This cut took effect partway through 2025, which meant the blended rate for that year was 14.5 per cent. In 2026, the full reduction kicks in from Jan. 1.
The Canada Revenue Agency has also adjusted all five federal tax brackets upward by a two per cent indexation factor to account for inflation.
The updated 2026 federal brackets are as follows:
- 14 per cent on the first $58,523 of taxable income (previously $57,375 at 15 per cent)
- 20.5 per cent on income from $58,523 to $117,045 (previously $57,375 to $114,750)
- 26 per cent on income from $117,045 to $181,440 (previously $114,750 to $177,882)
- 29 per cent on income from $181,440 to $258,482 (previously $177,882 to $253,414)
- 33 per cent on income over $258,482 (previously $253,414)
According to the Department of Finance Canada,
the rate reduction is expected to deliver over $27 billion in tax savings to Canadians over five years.
For individual households,
the savings are modest but meaningful,
particularly for those in the lowest income bracket.
How marginal tax rates work
One of the most common misunderstandings in personal finance is the belief
that earning a raise into a higher bracket means all your income gets taxed at a higher rate.
That’s not how it works.
Canada uses a progressive tax system.
Only the portion of your income that falls within each bracket is taxed at that bracket’s rate.
If you earn $70,000 in 2026,
you pay 14 per cent on the first $58,523
and 20.5 per cent only on the remaining $11,477.
Your overall effective tax rate ends up well below 20.5 per cent.
This is why you should never turn down a raise out of fear of a higher bracket.
More gross income always means more take-home pay after taxes,
though some income-tested benefits may be reduced at higher income levels.
Strategies to reduce your tax bill
1. Increase your RRSP contributions
A Registered Retirement Savings Plan contribution is one of the most powerful tools for reducing taxable income.
Every dollar you contribute lowers your taxable income by the same amount,
and the investments grow tax-deferred until withdrawal.
For 2026, the RRSP dollar limit is $33,810, up from $32,490 in 2025.
Your personal limit is the lesser of 18 per cent of your previous year’s earned income
or the annual cap,
plus any unused room carried forward.
You can check your available room through CRA My Account.
With tax season now underway, the RRSP deadline for the 2025 tax year was March 2, 2026.
That being said, planning your 2026 contributions early can still make a meaningful difference at the end of the year.
2. Claim every deduction and credit you’re entitled to
Many Canadians leave money on the table by overlooking deductions and credits they qualify for.
As CTV News recently reported, there are new credits and key deadline changes filers should watch for this season.
Common deductions include
childcare expenses,
moving expenses for work,
the home office deduction,
medical expenses above a certain threshold,
and tuition credits.
3. Split income with your spouse where possible
Income splitting can help reduce your combined household tax burden,
especially if one spouse earns significantly more than the other.
A spousal RRSP is one of the simplest tools:
the higher-income spouse contributes
and claims the deduction,
while the lower-income spouse eventually withdraws the funds at their lower marginal rate.
Pension income splitting is another option for retirees.
If you receive eligible pension income,
you can allocate up to 50 per cent to your spouse or common-law partner on your tax returns.
This can pull income out of a higher bracket and into a lower one.
Final thoughts
The 2026 tax year isn’t bringing dramatic changes,
but the combination of a lower bottom rate,
inflation-indexed brackets adds up to modest savings for most Canadians.
The real opportunity is in how you respond:
increasing your RRSP contributions,
claiming every credit you’re owed,
and thinking strategically about income splitting.
A little planning today can keep more of your hard-earned money where it belongs.
My opinion: This part stood out to me the most:
One of the most common misunderstandings in personal finance is the belief
that earning a raise into a higher bracket means all your income gets taxed at a higher rate.
That’s not how it works.
Canada uses a progressive tax system.
Only the portion of your income that falls within each bracket is taxed at that bracket’s rate.
If you earn $70,000 in 2026,
you pay 14 per cent on the first $58,523
and 20.5 per cent only on the remaining $11,477.
Your overall effective tax rate ends up well below 20.5 per cent.
This is why you should never turn down a raise out of fear of a higher bracket.
More gross income always means more take-home pay after taxes,
though some income-tested benefits may be reduced at higher income levels.
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