The income tax changes for 2025 weren't earth-shattering. But there's one notable change that took effect on July 1.
The federal tax rate on the portion of taxable income from $0-$57,375 went down from 15% to 14%.
There are a few tangible things you can do to possibly lower that bill—and it starts with getting organized.
What can I do to possibly lower my tax bill in the future?
Keep your receipts and become a good personal record keeper. You'll want to hold on to receipts for items related to home office expenses (if you work from home), some digital news subscriptions, and if you're in school, tuition fees for educational institutions
I might get a tax refund
this year. What should I do with it?
Let's get one thing straight: a tax refund isn't found money. For whatever reason (be it RRSP contributions or eligible tax credits, for example), it means you overpaid your income taxes throughout the year.
But there's no denying it; a tax refund can still feel pretty good.
If you want to be smart about this not-a-windfall, windfall, think about how to make your refund work best for you—like, chipping away at any high-interest debt you may have or making a lump-sum mortgage payment, which can be especially helpful if you have a renewal coming up soon.
You might also consider investing in yourself. That could mean literal investments within one of your registered accounts (like a TFSA or RRSP).
Or, it can be an investment into your health and wellness—like finally trying that new pilates studio or starting a new hobby and making 2026 the year you master the pottery wheel.
Wait, what's that about registered accounts?
These are federally sponsored accounts that usually offer some sort of tax advantage. Within them, you can hold investments, such as mutual funds, guaranteed investment certificates (GICs), stocks and more.
With a TFSA, your money grows tax-free, and withdrawals aren’t taxed either. RRSPs can help you reduce your taxable income. Both come with annual contribution limits. Here’s our quick guide to these two popular registered accounts.
These are by no means the only registered accounts in Canada. Here are some common ones you may be
aware of :
FHSA: First Home Savings Account is meant to help first-time homebuyers save for their first home
As you go over your documents from the 2025 tax season, take a look at how you used your registered accounts. Did you max out your TFSA and RRSP contributions? If you didn't, do you have capacity in your budget to contribute more in 2026?
To get inspired, read about how one TD employee saved enough for a down payment at 28 by diligently contributing to her TFSA—starting with modest amounts of anywhere from $10-$50.
What are some more ways to help build financial wellness this year?
Financial wellness might sound woo-woo, but it can be more practical than you might think. Especially if you start by setting your financial intentions, AKA, setting some realistic financial goals.
You can set short-, medium- and longer-term goals. One of the best ways to actually set and achieve goals is to use the SMART goal method, meaning your goal should be specific, measurable, achievable, relevant and time-bound.
Let’s say you want to save up for a vacation. You can start by figuring out how much money you’d need, how long it would take you to save that amount, how you’re going to save, and when you’d want to take that vacation.
“I want to take my family on an all-inclusive, tropical vacation next March Break by directing $100 from every paycheque for the next 12 months to a high-interest savings account” is an example of a SMART goal.
“I want designer handbags” is definitely a goal, but it’s not considered a SMART goal since it lacks specificity, measurability, achievability, and timeliness.
TD has resources available to help. You can head to a branch and work with a TD Personal Banker to use TD Goal Builder, which can take your financial goals and develop a modifiable roadmap to help you achieve them.
Maybe your tax refund could become your vacation fund? How’s that for a happy tax season?
Contribute to a Registered Retirement Savings Plans (RRSP) which can help reduce your taxable income
Learn about available tax credits and reductions. Visit the CRA website to see if you're eligible for any
Donate to a qualified charitable organization. The CRA has an explainer on how this works
RESP: Registered Education Savings Plan can help parents save for their kids’ education
RDSP: Registered Disability Savings Plan is available to eligible Canadians 18+ living with a disability and who quality for the federal Disability Tax Credit (DTC)
Note: The government offers matching grants with RESPs and RDSPs. You can learn more about how this works on the CRA website.