Last updated: 2026 CRA RRSP, FHSA, TFSA limits and federal, provincial, CPP, EI assumptions reviewed. Assumptions & sources
Tools & Resources

Tax Return Optimizer

Most calculators tell you what you owe. This one tells you what to do about it. Enter your income, what was already withheld, your registered-account room, and your giving, and it estimates your refund or balance owing, then shows the moves that lower your tax this year, with a few scenarios side by side. Plain-language guidance for the everyday filer, not complicated tax work. It is an estimate, not advice.

Your Income

Start with the income you expect to report. Salary numbers come off your T4. Leave anything that does not apply at zero.

$
Box 14 on your T4. The salary or wages you earned this year.
$
Net profit from freelancing, a small business, or contract work. No tax is withheld on this.
$
Interest, rental income, or other taxable income not covered above.

Investment Income

Only the kind held outside an RRSP or TFSA is taxed. If everything you own is inside a registered account, leave these at zero.

$
The profit on investments you actually sold. Only half is taxable.
$
Most dividends from large Canadian public companies. Box 24 on a T5.
$
Usually dividends from a small business corporation. Box 10 on a T5.

Tax Already Paid

This is how the tool knows whether you get a refund or owe a balance. It is your income tax withheld, not CPP or EI.

$
Box 22 on your T4, plus any instalments you paid. Leave at zero if none was withheld.

Registered Accounts

RRSP and FHSA contributions lower your taxable income. A TFSA does not, but it matters for the recommendations. Find your room on your CRA Notice of Assessment or in My Account.

$
The most you are allowed to contribute, including room carried forward.
$
The FHSA is for first-home buyers. It gives an RRSP-style deduction now and a tax-free withdrawal later.
$
Not tax-deductible, but the first place lower earners should usually look.

Giving

Gifts to your church and registered charities earn a donation tax credit. Enter the total you gave this year.

$
Only gifts with official receipts count. Your church offering qualifies.

Your Estimated Refund

$0
based on what you entered

An estimate for planning only, not tax, legal, or financial advice. Your actual return will differ.

$0
Total income tax
$0
After-tax income
0%
Marginal rate
0%
Average income tax

What the Numbers Suggest

Tailored to the income and bracket you entered. General guidance, not personal tax advice.

Scenarios Side by Side

The same income, different contribution choices. Tax saved is measured against contributing nothing.

Scenario Contribution Refund / (owing) Tax saved

How the Tax Is Built

LineAmount

Estimates use reviewed 2026 federal and provincial rates, the basic personal amount, CPP/QPP, EI, the dividend gross-up and tax credit, the 50% capital gains inclusion, and the charitable donation credit. It does not model every credit (medical, childcare, tuition, age, spousal, and others), so your real return may differ.

Please read: this is not advice

This tool is for education and planning only. It is not tax, legal, accounting, or financial advice, and using it does not create any advisory relationship. Dan Taylor is a pastor, not a licensed tax professional, and the figures here are estimates, not a substitute for professional advice or for filing a return.

It models the most common income types, deductions, and credits using reviewed 2026 assumptions. It does not capture every credit, deduction, or provincial detail, and it can be wrong for your situation. Income tax is also separate from CPP, QPP, and EI: the refund or balance shown compares income tax against income tax withheld only. If you are self-employed, you also owe CPP or QPP on that income, estimated at the full (double) rate and reported on your return, which is not included in the refund or balance above.

Before you file or make a significant decision, confirm the numbers with a licensed tax professional or CRA-certified software, and check current limits on the assumptions page. You are responsible for your own filing.

Why maxing out is not always right

An RRSP deduction is only worth your marginal rate. In a low-income year, filling it spends valuable room cheaply. The room never expires, so carrying it forward to a higher-earning year often returns more tax for the same dollar.

The RRSP vs TFSA tool walks through which account fits your bracket.

The refund is not a bonus

A refund is your own money coming back, interest-free, after the government held it all year. The faithful move is to give it a job before it arrives: debt, savings, or next year's contribution. Where your treasure goes, your heart follows. More on that here.

Tools Dan uses

Open an RRSP, FHSA, or TFSA

Room is only worth something once you fill it. Wealthsimple opens a registered account in minutes with no minimum, so you can start with whatever this month allows.

Open a Wealthsimple account →

Affiliate link, no cost to you. How this works. See the full list of tools Dan recommends.

Go deeper

Full tax calculator for a line-by-line federal and provincial breakdown.

Tithe calculator to plan your giving and its donation credit.

Frequently Asked Questions

How does this estimate my refund or balance owing?

It estimates the total income tax on everything you entered, then subtracts the tax that was already withheld or paid in instalments. If more was withheld than you owe, the difference is your refund. If less, you have a balance owing. CPP and EI are separate and are not part of that comparison.

Why is contributing the maximum to my RRSP not always best?

An RRSP contribution only saves tax at your marginal rate, so a dollar deducted in a low-income year is worth far less than the same dollar in a high-income year. Because RRSP room carries forward indefinitely, it often pays to contribute less now and save the room for a year when your income, and your marginal rate, are higher. A TFSA or FHSA frequently serves a lower earner better.

How does the charitable donation credit work in Canada?

The federal credit is 15% on your first $200 of donations each year and 29% on the rest (33% for very high incomes), and the province adds its own credit on top. Because the first $200 earns the lower rate, many couples claim all their giving on one return, and some people carry donations forward up to five years and claim several years at once, to clear that low-rate band only once.

Should I use a TFSA, RRSP, or FHSA first?

If you are buying a first home, the FHSA usually comes first: it deducts like an RRSP and withdraws tax-free like a TFSA. After that, higher earners generally favour the RRSP for the larger deduction, while lower earners often favour the TFSA, since the RRSP deduction is worth little in a low bracket and withdrawals will be taxed later.

Is this tax advice?

No. It is an educational estimate built on reviewed 2026 rates and the most common income types, deductions, and credits. It does not model every situation, including many credits and provincial details. For a real return or a significant decision, confirm the numbers with a tax professional.