Monthly Life Moments (MLM) | March: Tax Saving Strategies

by | Mar 18, 2026

4 Tax Saving Strategies to Consider

It’s March, that means it’s tax season. You can find details here, but the deadline was March 2, 2026 to contribute to an RRSP, a PRPP, or an SPP, and  April 30, 2026 to file your personal income taxes, June 15, 2026 to file your taxes if you or your spouse or common-law partner are self-employed, and April 30, 2026 to pay your taxes.

Right now, most of us will be in full swing to get our documents in order ahead of the deadlines. Whether you’ve done this before, or just starting out, it is always useful to get a refresher on tax-saving tips in this tax season. Here are four to consider:

1 | Contribute as much as you can to registered plans

We’ve talked in the past about whether you should contribute to a TFSA (Tax Free Savings Account) or RRSP (Registered Retirement Savings Plan) and the answer is that for most people, it likely is a little bit of both. This is especially true when you have enough income and want the maximum tax-advantage in your savings. RRSP contributions can lower your tax bill in the present, and TFSA contributions ensure your investment grows with no tax liability. Using both accounts, if you have the income to do so, can give you flexibility in saving for both long-term goals such as retirement, and shorter-term goals.

Remember that both RRSPs and TFSA’s have annual contribution limits. In the case of RRSPs, the limit depends on your income. In the case of TFSAs, every eligible person has the same limit. The TFSA limit for 2026 is $7,000 but depending on eligibility, you might have up to $109,000 of contribution room.

But apart from TFSAs and RRSPs, you could also contribute to other accounts, if eligible. If you have children, for example, you can contribute to their Registered Education Savings Plan (RESP.) If you contribute $2,500 to an RESP, you could get the maximum Canada Education Savings Grant from the government of Canada, which is 20% or $500.

For eligible contributors, there also is the Registered Disability Savings Plan (RDSP,) a long-term savings plan to help people with disabilities who are approved for the Disability Tax Credit save for the future. As the Government of Canada website explains, when you open a plan, you may also get grants and bonds from the Government of Canada to help with your long-term savings. The Canada Disability Savings Grant is a matching grant that is paid up until December 31 of the year the beneficiary turns 49. That means that, if you contribute to your plan, the government will also put money into your plan. The maximum yearly grant amount is $3,500, with a limit of $70,000 over your lifetime. The Canada Disability Savings Bond is money the government contributes to the RDSPs of low- and modest-income individuals. You do not need to make any contributions to your plan to receive the bond. The maximum yearly bond amount is $1,000 until you reach the limit of $20,000.

2 | First-time home buyers can save too

If you’re looking to buy your first ever home, you can open a First Home Savings Account (FHSA.) Contributions made to FHSAs are generally deductible on your income tax and benefit return for the year of the contribution or a future year, similar to RRSPs. However, transfers from RRSPs to FHSAs are not deductible. Over your lifetime, the most you can deduct from your income as an FHSA deduction is $40,000.

3 | A stock loss can be a tax win

If you have capital losses in the past year, you can offset some of those losses against capital gains. This is a strategy called tax loss harvesting. It is important to remember that this strategy can only be used in non-registered accounts, not in TFSAs, RRSPs, RESPs, or other tax-advantaged accounts. You can calculate your capital gains or losses here.

The Government of Canada has offered an example to explain way it works:

In 2025, you sold two different securities resulting in a taxable capital gain of $225 (50% x $450) and an allowable capital loss of $375 (50% x $750). After applying your allowable capital loss against your taxable capital gain, you are left with $150 ($375 – $225) of unapplied allowable capital losses for 2025. The inclusion rate for 2025 is 50%. While you cannot deduct the $150 from other sources of income in 2025, it becomes part of the computation of your net capital loss for 2025. You can carry this net capital loss back to apply against taxable capital gains in any of the three previous years or carry it forward to any future year, depending on your situation

Some investors might find this strategy a bit complicated, and so, it would make sense to approach a financial advisor and/or tax professional for advice.

4 | Say ‘I Do’ to income splitting

Couples can use a spousal RRSP or other income splitting means to move income from the partner to the lower-earning one. For example, in the case of a spousal RRSP, the partner that earns more can contribute to a spousal RRSP of the partner that earns less. This means that in the immediate term, the taxable income of the higher-earner reduces, and withdrawals will be taxed in retirement for the lower-earner.

Covered Call ETFs and taxes

As long-time readers know, Harvest Portfolios is a leader in covered call ETFs, which may be a great option for investors looking for income. Investors might have questions about the tax implications of these funds. You can find detailed answers to many tax-related questions here here, but I have responses to frequently asked questions below:

How are withholding taxes accounted for on the dividends earned by the stocks in the portfolio? Is the withholding tax payable by the unit holder?

The withholding tax is a percentage of the underlying dividend paid by the portfolio holdings and is paid at source. For most Canadian individuals there are no incremental withholding taxes payable or reclaims to be filed associated with the underlying dividends received, however for corporations, professional corporations or other special situations that may arise, individuals ought to consult with their tax advisors.

Are Harvest ETF distributions eligible for the Canadian Dividend Tax Credit (CDTC)?

Harvest Equity Income ETFs that primarily hold Canadian companies, like the Harvest Canadian Equity Income Leaders ETF (TSX: HLIF) – which invests in a  portfolio of exclusively Canadian dividend-paying companies, may have a portion of the total net distribution paid to the investor that could be eligible for the Canadian Dividend Tax Credit (CDTC). This is not same for the Harvest Equity Income ETFs line-up which primarily hold US equities – these are not eligible for CDTC.

You can find additional details here.

Disclaimer

This communication is meant to provide general information for educational purposes. It should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional. Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds managed by Harvest Portfolios Group Inc. (the “Funds”). Please read the relevant prospectus before investing. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available Class units of the Fund you own. If a Fund earns less than the amounts distributed, the difference is a return of capital.

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For Information Purposes Only. All comments, opinions and views expressed are of a general nature and should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies.

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds, managed by Harvest Portfolios Group Inc. (the Fund(s)). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into Class A, Class B or Class U units of the Fund. If the Fund earns less than the amounts distributed, the difference is a return of capital. Tax, investment and all other decisions should be made with guidance from a qualified professional.

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