5 Smart Tax Moves to Make Before the End of the Year

1. Contribute to your registered accounts

Registered accounts offer a variety of benefits, including tax deductions and government grants. And while each works a little differently, most run on the calendar year, meaning December is the ideal time to make sure you're getting the most out of these tax-planning tools. (For all registered accounts, remember to track your contributions to avoid overcontribution penalties.) Here's what to watch for.

Registered Education Savings Plan (RESP)

Post-secondary education is already expensive enough—you don't want to pass up free money. If you want to qualify for the Canada Education Savings Grant (CESG) this year, then you'll need to make your RESP contributions by December 31. Under the CESG, the government will match 20% of what you put in, up to a maximum of $500 per year, or up to $1,000 if you have unused amounts from previous years—and income-qualified contributors can receive top-ups above these amounts as well. The lifetime CESG limit is $7,200, and you'll need to plan contributions carefully to maximize it.

Registered Disability Savings Plan (RDSP)

RDSP contributions must be in by December 31 to receive this year's Canada Disability Savings Grant (CDSG). Depending on your family income and the size of your contribution, you'll receive a match of between $1 and $3 for each dollar you put in, up to a maximum of $3,500 per year.

First Home Savings Account (FHSA)

If you're planning to claim your FHSA tax deduction on your 2025 tax filing, then you need to make sure your contributions are in by December 31. Investment growth in the account is tax-free, and so are withdrawals.

Registered Retirement Savings Plan (RRSP)

While most Canadians have until March 2, 2026, to make RRSP contributions (up to your RRSP limit) for the 2025 tax year, those who turned 71 in 2025 must make any final contributions by December 31—which is also the deadline for them to convert their RRSPs into a Registered Retirement Income Fund (RRIF), cash them out, or buy an annuity.

Tax-Free Savings Account (TFSA)

Although there's no TFSA contribution deadline, investing early means more time for tax-free growth. You can also plan ahead for next year's contributions, as anyone 18 or older in 2026 will gain $7,000 of new TFSA room on January 1. If you made a TFSA withdrawal in 2025, you'll also get that contribution room back on Jan. 1.

2. Check your investments and consider tax-loss selling

Year-end tax planning includes checking in on your investments, too, and deciding whether to make any changes before the new year. You might also want to finalize tax-deductible investment-related expenses, such as some investment fees, as these must be paid by year-end in order to claim a 2025 tax deduction.

If you have investments in non-registered accounts, you might want to consider tax-loss harvesting—selling certain investments at a loss in order to offset any capital gains you've earned outside of registered accounts like an RRSP or a TFSA. Capital losses can be carried back three years and carried forward indefinitely, making them a versatile tool to reduce how much capital gains tax you have to pay. (Just remember the superficial loss rule: to claim a capital loss for tax-loss harvesting, you have to wait at least 30 days before buying back that same asset.) Keep in mind that it takes one business day for trades to settle, so they must take place by December 30.

3. Make charitable donations

December 31 is also the deadline to make any charitable donations you'd like to claim as a tax deduction in 2025. “Consider it a win-win,” says [NAME]. “You get to support a great cause and boost your tax savings, too.”

There are two ways to make a donation now and get a tax receipt:

• Make a cash gift by December 31. Tip: only registered charities and other “qualified donees” are eligible to issue tax receipts, so it pays to check an organization out first. (Find out more about the charitable donation tax credit.)
• Donate securities such as stocks or mutual funds to a registered charity or foundation. You'll get a tax receipt for the fair market value and, bonus, likely won't pay tax on any capital gains. Start at least a few weeks early to get the process done by December 31.

Plus, note that if you have a donor-advised fund, you can contribute to it by December 31 to claim a tax receipt.

If you have unused donation tax credits from past years, consider whether this is the year to claim them. You can carry them forward for up to 5 years.

4. Get ready to claim tax credits and deductions

Round up all those receipts and tax slips! You may be able to claim:

• Child care expenses, such as daycare fees
• The cost of kids' programs including arts, sports, and wellness (depending on where you live)
• Education expenses
• Charitable donations
• Medical expenses, such as physiotherapy and some fertility treatments
• Eligible costs for making your home accessible or for renovating to create a suite for an adult family member who qualifies for the Disability Tax Credit
• Moving expenses (if you moved for work or school)

If you're supporting a family member with a physical or mental impairment, you may also be eligible for the caregiver tax credit. Qualifying may require a signed letter from a medical professional.

As for self-employed Canadians, there are plenty of year-end tasks to complete. For example, you can:

• Find (legit) ways to increase your business expenses for this year, such as by renewing or prepaying for next year's products and services in advance so you can claim them on your 2025 return.
• Catch up on invoicing, organizing expenses, and reconciling GST/HST.
• Ensure you're caught up on income tax and GST/HST instalment payments
• Set aside money for upcoming taxes.
• Plan for holiday or year-end gifts for clients or employees.
• Consider ways to improve expense-tracking and bookkeeping for next year

5. Choose the right tax software

From charitable donations and tax deductions to small-business expenses and more, TurboTax Online is here to help you maximize your tax savings—so you can focus on celebrating the holidays in style.

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