Eight Financial Strategies for the New Year

Tips to set up your finances for success in 2026 

In recent years, Canadians have seen major updates to tax credits, savings programs, and contribution limits – many of which work in your favour as an investor. With the new year approaching, here are some strategies to help you maximize savings and minimize taxes in 2026.

There’s good news: the federal government introduced a middle-class tax cut, lowering the lowest marginal personal income tax rate from 15% to 14% starting July 2025. This means more money in your pocket in 2026. Combined with updated savings tools, you now have more opportunities than ever to strengthen your financial plan.

The government also held off on its original plan to increase capital gains taxes and is offering GST incentives to some new home buyers. More on those below.

As always, your best move is to meet with a professional advisor to get a complete picture of all the opportunities available. Investments, tax laws and the economy can change quickly, and professional guidance is invaluable.

So with that, here are eight things to consider for your finances as 2026 begins: 

1. Open a First Home Savings Account (FHSA) 

The FHSA remains a powerful tool for first-time buyers. You can contribute up to $8000 annually, with a lifetime limit of $40,000. Contributions are tax-deductible, and withdrawals for a first home are tax-free. If you haven’t opened one yet, do so before year-end to start building contribution room.

There’s also some tax relief available to first-time buyers looking at new construction. The federal government has eliminated the GST for first-time buyers on new homes up to $1 million, with a reduction available for first-time buyers of new homes between $1 million and $1.5 million. 

2. Use home-reno tax credits

The multigenerational home renovation tax credit (MHRTC) and the home accessibility tax credit (HATC) continue to provide relief. The MHRTC offers 15% of eligible costs up to $50,000, while the HATC provides 15% of costs up to $20,000. Both remain valuable for families supporting seniors or people with disabilities. 

3. Plan ahead if you expect capital gains 

Last year, the federal government had plans to increase the capital gains inclusion rate, but those have since been scrapped. But still, the 50% inclusion rate remains in effect, with exemptions available for certain qualified properties under the Lifetime Capital Gains Exemption. This rule makes capital gains more tax-efficient compared to regular income. Consult with an advisor before you make a move.

4. Avoid the superficial loss rule

Selling investments at a loss before the end of the year to offset gains is smart, but remember you can’t repurchase the same asset within 30 days. Consider similar but not identical investments to stay compliant.

5. Donate investments “in kind”

Charitable donations of appreciated securities remain more tax-efficient than cash. You avoid capital gains tax and still claim the full donation value. Donations can be carried forward for up to five years, making timing important, yet somewhat flexible.

6. Maximize TFSA and RRSP contributions 

The TFSA annual limit for 2026 is holding steady at $7000 with the cumulative total from 2009 rising to $109,000. RRSP contribution limits are indexed to income, with the maximum set at $33,810 for 2026. Both remain cornerstone tools for tax-efficient saving.

7. Plan for RRSP conversion at 71

If you’re turning 71 in 2026, remember RRSPs must be converted to RRIFs. Consider using the $2,000 lifetime over-contribution limit or contributing to a spousal RRSP if eligible. Converting to a RRIF as early as age 65 can also open some pension tax credits and benefits. Discuss your options with an advisor.

8. Contribute to RESPs

The Canada Education Savings Grant (CESG) continues to match 20% of contributions up to $500 annually, with a lifetime maximum of $7,200 per child. Provincial grants, such as B.C.’s $1,200 one-time payment, remain available. 

If you’re behind or late-to-start, you should know that there is a catch-up year available – up to $1,000 each year. Ask an advisor how that works.

Key 2026 updates to note

• Middle-class tax cut: Lowest federal rate now 14%, saving couples up to $840 annually
• GST on new homes: Eliminated or reduced for some first-time new-build home buyers
• TFSA limit: $7,000 in 2026; cumulative $109,000
• RRSP limit: $33,810 maximum contribution for 2026
• Capital gains: Last year’s proposed increase is scrapped 

Your financial journey starts with a plan 

A new year starts a new journey. Now is the time to refresh your financial plan with a professional advisor. Or if you don’t have a plan, it’s the right time to get started. Every year brings new challenges and opportunities, and 2026 will be no exception. By leveraging updated tax credits, contribution limits, and savings strategies – and getting the right advice – you can set yourself up for success in 2026 and beyond. 

BlueShore Financial, GFCU Savings, Gulf & Fraser, Interior Savings and North Peace Savings are trade names of Beem Credit Union.