Before December 15
Do you make quarterly tax installments?

Make your final payment to the Canada Revenue Agency (CRA) on or before December 15 to avoid interest charges and late payment penalties. Missed an earlier payment deadline? Consider making a larger payment before December 15 to reduce interest charges.

Before December 31
Take advantage of tax-loss selling strategies

• If you have capital gains this year (sold an investment for more than you paid for it)—and you’re holding securities with unrealized capital losses (an investment that will sell for less than you paid for it)—consider selling the securities to realize the losses and offset the capital gains. Note that trade settlement must take place on or before December 31 to apply to this year’s tax bill.
• If your capital losses this year are more than your capital gains, the unused capital loss may be carried back three years or carried forward indefinitely.

Defer capital gains

• Consider deferring to sell investments with unrealized capital gains to next year, if you think your tax rate will be lower in 2026.

Before December 31
Take advantage of tax-smart investing

Registered Retirement Savings Plan (RRSP)

• Contribute to your RRSP/spousal RRSP up to your available contribution room now to reduce your 2025 taxable income while maximizing the tax-deferred growth in your plan.

Tax- Free Savings Account (TFSA)

• Contribute to a TFSA to earn tax-free investment income.
• The TFSA contribution limit for 2025 is $7,000. You may also have unused contribution room if you haven’t maximized your contributions in previous years.
• Thinking of making a TFSA withdrawal? Do so before year-end so you can recontribute the amount as early as January 1.
• View your available contribution room for 2025 by using the My Account service on the CRA website.

RESP

• Saving for a child’s post-secondary education? Contribute to an RESP before the end of the year to make the most of tax-deferred growth and government grants.

• Contributions to an RESP are subject to a lifetime contribution limit of $50,000 per child.

Turning 71 in 2025 and have earned income?

• Even if you have no carry-forward room but have earned income that will generate RRSP contribution room in 2026, consider making a final RRSP contribution before the end of 2025 which can be claimed as a deduction on your 2025 tax return.
• Since the contribution is made before the end of 2025, an over-contribution penalty tax of one percent per month will apply on any amount greater than $2,000.

Make a charitable donation

• Donate to a registered charity to claim the tax credit on your 2025 tax return.

Put your year-end bonus to work

• Reduce your withholding taxes by transferring your bonus directly to your RRSP (if your employer allows this and you have unused contribution room).
• Expect to be in a lower tax bracket next year? Consider deferring your bonus to early 2026 (if allowed by your employer).

Moving to a different province or territory? Plan your timing.

Generally, you’re taxed based on where you live on December 31. Consider:

• Moving before year-end if you’re going to a province or territory with a lower tax rate.
• Waiting until 2026 if you are moving to an area with a higher tax rate.

Pay tax-deductible expenses

• Pay all investment management fees, deductible legal and accounting fees, childcare expenses, alimony and medical expenses by December 31 to deduct them on your 2025 tax return.