You do not need complicated strategies to pay less tax. Most savings come from using the accounts and credits already available to you and making sure nothing is missed. Here are seven practical ways Canadians can keep more of what they earn.

1. Contribute to your RRSP

RRSP contributions are deducted from your income, which lowers the tax you pay. The higher your tax bracket, the bigger the saving. Contributions made in the first 60 days of the year can be deducted on the previous year’s return; for the 2025 tax year, the deadline was March 2, 2026.

2. Open a First Home Savings Account (FHSA)

If you are saving for your first home, the FHSA gives you a deduction like an RRSP, up to $8,000 a year and $40,000 in total, and qualifying withdrawals to buy your first home are tax-free.

3. Use your TFSA

TFSA contributions are not deductible, but investment growth and withdrawals are tax-free. Room for 2026 is $7,000, and unused room carries forward.

4. Claim every credit you are entitled to

Many people miss credits they qualify for. Common ones include:

• medical expenses for you, your spouse and dependants
• charitable donations (they can be combined with your spouse’s donations)
• tuition amounts
• the disability tax credit and the Canada caregiver amount

5. Deduct eligible expenses

Child care expenses can be deducted, usually by the lower-income spouse. If you moved at least 40 km closer to a new job or to school, some moving expenses may be deductible. If you are self-employed, keep records of your business expenses, including a share of home office costs where eligible.

6. Split income with your spouse where the rules allow

Seniors can split eligible pension income with a spouse or common-law partner, and spousal RRSPs can help balance retirement income. Both can lower your household’s total tax bill.

7. File on time, every year

If you owe tax and file late, the CRA charges a penalty of 5% of the balance owing plus 1% for each full month the return is late, up to 12 months, on top of interest. Filing on time, even if you have no income, also keeps benefits such as the GST/HST credit and the Canada Child Benefit coming.

Keep your receipts organized

The best tax savings start with good records. Keep your slips and receipts in one place throughout the year, so claims are easy to support if the CRA asks.

Need a hand?

LMZ Accounting helps individuals and small businesses across Canada with bookkeeping, payroll, tax preparation and GST filing. Call us at (306) 450-0434, email leonardceo@lmzaccounting.com, or send us a message.

This article is general information, not tax or legal advice. Tax rules change and every situation is different, so talk to us about yours before you act.