Once December 31 has passed, most of the choices that lower your 2026 tax are behind you. The good news: there are still a few weeks left to act. Here are 10 practical year-end tax planning moves for Quebec individuals and self-employed people, using the 2026 tax-year figures published by the Canada Revenue Agency (CRA) and Revenu Québec.
1. Check your RRSP room
Your RRSP deduction limit is on your latest federal notice of assessment and in CRA My Account. For 2026, new room is 18% of your 2025 earned income, up to $33,810, plus any unused room from past years. You have until March 1, 2027 (60 days after year-end) to contribute and deduct the amount for 2026, but deciding now gives you time to plan your cash flow. If you turn 71 in 2026, the last day to contribute to your own RRSP is December 31, 2026.
An RRSP pays off most when your tax rate today is higher than the rate you expect in retirement. If your income is low this year, you can still contribute now and carry the deduction forward to a higher-income year.
2. Contribute to your FHSA before December 31
Unlike the RRSP, the first home savings account (FHSA) has no 60-day window: contributions count for the calendar year in which you make them. The annual limit is $8,000, with a $40,000 lifetime limit, and you can carry forward up to $8,000 of unused room to the next year. Room only starts building in the year you open your first FHSA, so if you plan to buy a first home, opening the account before the end of 2026 can give you more room in 2027.
3. Time your TFSA withdrawals and contributions
The TFSA annual limit for 2026 is $7,000. A withdrawal gives you the same amount of room back, but only on January 1 of the following year. Two practical consequences:
- if you plan to take money out of your TFSA early in 2027, withdrawing in December 2026 instead restores that room on January 1, 2027;
- if you already withdrew this year, don't put the money back before January 1 without checking your room: excess contributions are taxed at 1% per month.
4. Make your donations by December 31
A donation counts for the year it's made, and you need an official receipt from a qualified donee. You can also carry donations forward to any of the next five years. It often pays to combine both spouses' donations on one return, or to group them over more than one year, because the credit is higher on the portion above the first $200.
5. Look at your medical expenses
Eligible medical expenses must be paid within a 12-month period that ends in the tax year. That period doesn't have to be the calendar year: you can choose it to capture as many expenses as possible. If planned dental work, glasses or treatments can be paid before December 31, they can count for 2026. Keep every receipt, including the part your insurance didn't reimburse.
6. Make your December 15 instalment
If you live in Quebec, the CRA asks for instalments when your net tax owing is more than $1,800 for 2026 and for either 2025 or 2024. Revenu Québec also uses an $1,800 threshold for Quebec tax. The due dates are March 15, June 15, September 15 and December 15. If you missed a payment, paying by December 15, or sooner, limits the interest. This is the classic situation for a self-employed person whose income went up this year.
7. Self-employed: buy what the business needs
A business expense is deductible in the fiscal period in which it's incurred. If your business genuinely needs supplies, software or training, buying them before December 31 instead of in January can bring the deduction forward a year. Careful: prepaid services that relate to 2027 aren't deductible in 2026.
8. Equipment has to be ready to use before year-end
A computer, equipment or a vehicle is deducted through capital cost allowance (CCA), and only once the property is available for use. Equipment bought on December 28 but delivered in January gives you no CCA for 2026. Buy because the business needs it, not just for the deduction.
9. Sell investments at a loss
If you realized capital gains this year in a non-registered account, selling an investment that has lost value can reduce the tax on those gains. The sale has to settle before year-end, so check the last trading day with your broker. If you or your spouse buy back the same investment within 30 days before or after the sale, the loss is denied (the superficial loss rule).
10. Gather your receipts now
December is the right time to tidy up: a November receipt is much easier to find today than in April. Gather:
- childcare, medical and donation receipts;
- your mileage log and car expenses, if you use your car for work or business;
- home office expenses (rent or mortgage interest, electricity, insurance) and the office's floor area;
- your sales and expense records for the year, if you're self-employed;
- your RRSP and FHSA contribution receipts.
Our guide to tax season in Quebec lists the slips to expect in February. You'll be ready for April 30, 2027, the deadline to pay any balance owing and, for most people, to file. Self-employed people have until June 15, 2027 to file, but the balance is still due on April 30.
Your quick checklist before December 31
- RRSP room checked and amount decided (deadline: March 1, 2027).
- FHSA contribution made, or account opened if a first home is in your plans.
- TFSA withdrawal made in December rather than January, if you need the money.
- Donations made and official receipts kept.
- Planned medical expenses paid.
- December 15 instalment paid, if you've been asked for instalments.
- Needed business purchases made and equipment delivered.
- Capital losses reviewed with your broker.
- This year's receipts filed in one folder.
Incorporated?
A corporation's year-end decisions are different: salary or dividends, bonuses, asset purchases. Our article on corporate tax planning in Quebec has a separate checklist for owners of incorporated businesses.
Want a hand?
These moves don't take long, but the order and the amounts depend on your situation. If you'd like to go over them with someone before December 31, we offer a free 15-minute call or a one-hour tax consultation for $125. In the spring, we prepare your federal and Quebec personal tax return at a fixed price, in English or French, at our Laval office or remotely. Call 438-336-1714 or email info@abzaccounting.ca: we reply within 24 hours.
Looking for an accountant in Laval or an accountant in Montreal who handles everything at a fixed price? Request a free quote.