December 31 is your last chance to lock in big tax savings — yet most Canadians will miss at least one of these easy wins. Let’s start with…
TFSA
If you plan to take money out of your TFSA, the timing of the withdrawal matters a lot.
When you pull money from a TFSA, you don’t get that contribution room back until January 1 of the next calendar year. If you withdraw in January instead of December, you lose the ability to recontribute for an entire extra year. So if you need cash from your TFSA, make sure you do it before Dec 31.
Example:
Will has a fully maxed TFSA worth $100,000, and he needs $15,000 for a home renovation.
Option A – Withdraw on December 30, 2025
- Withdraws $15,000
- On January 1, 2026, Will gets $15,000 of contribution room back
- He can recontribute anytime in 2026 if he has extra cash, or say a tax refund, or a bonus
Option B – Withdraw on January 3, 2026
- Withdraws $15,000
- He will not get that room back until January 1, 2027
- For all of 2026, his TFSA stays permanently $15,000 smaller
✅ FHSA
If you don’t have an FHSA yet, open one before December 31. Even if you’re not ready to put money in, just opening it locks in this year’s $8,000 of room.
Most people don’t realize this:
FHSA contribution room doesn’t pile up forever like RRSP room does. You only get $8,000 a year, and you can only carry forward $8,000. That’s it. So the most room you can ever have available at once is $16,000.
Here’s why year-end matters:
Let’s say Will wants to buy a home in a few years:
- Will opens his FHSA in December 2025
- Instantly gets $8,000 of room for 2025
- On January 1, 2026, he gets another $8,000
Will now has $16,000 available, even if he didn’t put a dollar into it yet.
If he waited until 2026 to open it, he’d only get $8,000. The 2025 room would be gone forever.
✅ If you already have an FHSA
Try to contribute as close to the $8,000 annual max as you can by December 31. You get a tax deduction like an RRSP, and the growth is tax-free like a TFSA when you buy your first home.
Example:
Will puts $8,000 into his FHSA in December. When he files his taxes, he gets a deduction that lowers his taxable income for 2025. Meanwhile, that $8,000 can start growing tax-free inside the account, and when he eventually buys a home, he can withdraw both the money and the growth without paying any tax.
Even one year of FHSA contributions can create real tax savings and free growth.
✅ And if you never end up buying a home?
Nothing is wasted. You can roll your FHSA into your RRSP — tax-free — and keep growing it for retirement. No tax slip, no penalty, no income limit required.
✅ RRSP
The deadline for 2025 contributions is March 1, 2026, so you don’t have to rush before year-end. But contributing earlier still has benefits:
- You might get your tax deduction & refund sooner
- Your money starts investing and compounding earlier
- And if you’re planning to use the Home Buyers’ Plan, those funds are already inside the RRSP when you need them
Example:
Will plans to contribute $6,000. If he does it in December instead of waiting until February, he gains extra time invested in the market. He’s also been looking at buying a house, and if he ends up using the Home Buyers’ Plan, the money is already sitting in his RRSP.
So while December 31 isn’t a hard deadline, contributing early gives you more flexibility and more time in the market, which can make a difference over the long term.
By the way, if you’re watching this and thinking, ‘I don’t want to miss any of these deadlines,’ that’s exactly what we do at Blueprint Financial. We build tax-efficient plans for Canadians so your money stays in your pocket, not the CRA’s. Book a discovery call and build the life you want, with the right Blueprint.
✅ RESP
The RESP gives you free money from the government: they match 20 percent of what you contribute, up to $500 each year per child.
If you don’t contribute in a year, you’re missing out on that $500. You can catch up later, but only one year at a time, since the government only pays a maximum of $1,000 per year in grants.
Example:
Will puts $2,500 into his daughter Mia’s RESP before December 31, and gets the full $500 grant for 2025. If he waits until next year, he’s now behind — and catching up gets slower.
So even a small contribution before year-end keeps you from losing free grant money.
✅ Income Splitting
If one partner earns a lot more, income splitting can lower your taxes in retirement and help you avoid the OAS clawback. Two common year-end moves:
1. Spousal RRSP
The higher-income partner contributes to the lower-income partner’s RRSP.
Later, the withdrawals are taxed in the lower-income partner’s name.
- Deadline: Usually March 1, but if your spouse turns 71 this year, the deadline is December 31
- Attribution rule: If the lower-income spouse withdraws within 3 years of the contribution, the tax goes back to the higher earner — so this is a long-term play
Example:
Will makes $120K, and his partner Emma makes $45K. Will puts $5,000 into a spousal RRSP for Emma before the deadline.
Fast forward to retirement: Emma withdraws that money in a much lower tax bracket. That keeps their combined income lower and helps them stay below the OAS clawback threshold. One move, thousands saved later.
2. CPP Pension Sharing
If you want CPP income taxed more evenly next year, apply before December 31. CPP sharing only starts once Service Canada approves it — you can’t backdate it.
Example:
Will’s CPP will be $1,100 a month. Emma’s will be $450. They apply this year, and next year Service Canada starts splitting the payments — part of Will’s CPP is taxed in Emma’s name. Their combined tax bill goes down, just by filing a form.
This is the stuff accountants geek out over… and now you’re in the club.For more, check out our guide on 7 powerful income-splitting strategies to legally reduce your tax bill.
📩 Get your free guide—link is here:
https://blueprintfinancial.ca/income-splitting-strategies-download/
✅ RDSP
If you or a family member qualifies for the Disability Tax Credit, make sure the RDSP is opened and funded before December 31. Even a small contribution can trigger big federal grants and bonds, and the amounts can be surprisingly large.
The lifetime government matching on an RDSP can reach tens of thousands of dollars, but you only receive it if the account is set up and money goes in. Many families lose out simply because they delay a year or two.
If you’re eligible and haven’t contributed yet, doing it before year-end can unlock grant money you won’t get otherwise.
✅ Medical Expenses
If you’ve had medical costs this year, it’s worth checking whether paying a few remaining bills before December 31 could push you over the threshold for the Medical Expense Tax Credit for the 2025 tax year. The credit applies to eligible expenses that exceed the lesser of 3% of your net income or $2,834 in 2025. Hitting that threshold can unlock a tax deduction you’d lose by waiting until next year.
This includes things like dental work, prescription medication, glasses or contact lenses, mobility aids, and certain therapy costs. So if you’re close to the limit, booking a dental appointment, filling prescriptions, or buying needed medical equipment before year-end could increase your claim. Even a small end-of-year expense can make the difference between getting nothing back or claiming thousands
✅ Charitable Donations
If you plan to give to charity, make sure the donation goes through before December 31 so it counts for 2025. The Charitable Donation Tax Credit gives you 15% back federally on the first $200 you donate, and 29% on anything above that. Provinces add their own credit on top. Alberta is especially generous—60% on the first $200—so the savings can be huge.
Example:
Will lives in Alberta and donates $100 to a registered charity before December 31. He gets a 15% federal credit plus a 60% provincial credit, which adds up to a $75 tax credit on his $100 donation.
You can claim donations up to 75% of your net income, carry unused amounts forward for five years, and even pool donations with your partner to maximize the credit.
✅ Maximize Employer Benefits
This one isn’t technically a tax credit, but it can still put real money back in your pocket before year-end. Many workplace health and wellness benefits reset on January 1. If you still have dental, vision, massage, or health spending allowance dollars sitting unused, now is the time to book appointments or submit receipts so the money doesn’t disappear.
A lot of people also forget about unused vacation days. If your company has a “use it or lose it” policy and days don’t roll into the new year, taking those days off now is the same as saving money — otherwise, you’re handing free paid time back to your employer.
✅ Capital Loss Harvesting
If you have investments that dropped in value this year and want to sell them, doing it before December 31 can offset capital gains and reduce your tax bill. The trade has to settle by December 31, so waiting until the last couple of days can be risky.
Watch the superficial loss rule: if you sell a stock or ETF at a loss and buy it back within 30 days, the loss is denied. That rule also applies if your spouse or corporation buys it back for you.
Example:
Will sold an ETF that was down $3,000 and used the loss to offset gains from selling another investment earlier in the year. To stay invested, he bought a different ETF that tracks a similar index instead of repurchasing the same one, avoiding the superficial loss rule.
For anyone with capital gains, harvesting losses before year-end can be an easy tax win.
✅ Business Owner Tax Moves
If your business year-end is December 31, buying equipment or assets before year-end lets you write them off sooner. You can also pay salaries, dividends, and bonuses before year-end.
If your corporation has a different fiscal year-end than Dec 31, the same idea applies — just move these actions before your year-end date so the deductions fall into the current tax year instead of the next one.
Example:
Will owns a small corporation with a December 31 year-end. He buys a new laptop in December, pays out bonuses to his staff, and pays himself a dividend. All three moves reduce taxable income for this year instead of next.
These small year-end moves can add up to thousands in tax savings. Most people never learn this — but now you have an edge. If you want a personalized plan to make sure nothing falls through the cracks, our team can help you build a smart, tax-efficient roadmap.
Stay informed all year long by joining our free financial newsletter, where we share strategies, reminders, and insights to help you keep more of your money.
If you’re ready for one-on-one support, explore our financial planning services to see how we can design a plan tailored to your goals and situation.
