Smart Tax Planning Strategies for 2026
RRSP • TFSA • FHSA • RESP • Investment Accounts Presented by: Rokon
Presented by: Rokon Alam, CPA, MBA
Why Tax Planning Matters
Taxes are your biggest lifetime expense
Small decisions compound over decades
2026 tax changes create new opportunities
Using the right accounts = more money in your pocket
Example:
Two people earning the same income can retire with a $300,000+ difference depending on how they use RRSP/TFSA.
The Big Three Tools
RRSP — Reduce taxable income today
TFSA — Grow money tax‑free forever
FHSA — Save for your first home with double tax benefits
Simple takeaway:
Each account has a different job. The magic is using them together.
Contributions reduce your taxable income
Investments grow tax‑deferred
Withdrawals taxed later (ideally at a lower rate)
Example:
If you earn $80,000 and contribute $5,000 to your RRSP, you may save $1,200–$1,500 in taxes.
RRSP is ideal if:
You’re in a middle or high tax bracket
You expect to retire in a lower bracket
You want to build retirement income
You’re an incorporated professional using salary to create RRSP room
2026 Tip:
The lower 14% tax rate slightly changes the math for low‑income earners — RRSP may be less beneficial for them.
No tax deduction when you contribute
Investments grow tax‑free
Withdraw anytime, tax‑free
Withdrawals create a new room the next year
Example:
If your TFSA grows from $50,000 to $80,000, the $30,000 gain is 100% tax‑free.
TFSA is ideal if:
You’re in a low or middle tax bracket
You want flexibility
You’re saving for a car, home, or emergency fund
You want tax‑free retirement income
2026 Tip:
With higher CPP and OAS thresholds, TFSA withdrawals help retirees avoid clawbacks.
Designed for first‑time homebuyers
Contributions reduce taxable income (like RRSP)
Withdrawals for a home are tax‑free (like TFSA)
$8,000 annual limit, $40,000 lifetime
Example:
If you contribute $8,000, you may save $1,500+ in taxes AND withdraw it tax‑free for your home.
FHSA is ideal if:
You plan to buy your first home
You want the biggest tax savings available
You want to combine it with the RRSP Home Buyers’ Plan
2026 Tip:
Even if you’re unsure about buying, opening an FHSA early starts the clock on contribution room.
RESP: For Parents & Future Parents
The government adds 20% on the first $2,500 contributed
Tax‑free growth
Withdrawals taxed in the student’s hands (usually very low)
Example:
Contribute $2,500 → Government adds $500. That’s a guaranteed 20% return.
Non‑Registered Investment Accounts
No contribution limits
Taxable annually (interest, dividends, capital gains)
Useful once TFSA/RRSP/FHSA are maxed
2026 Tip:
Capital gains inclusion rate remains favourable — still a powerful long‑term tool.
Which Account Should You Use First?
Simple priority order for most Canadians:
FHSA (if eligible)→ TFSA→RRSP→ RESP (if you have kids)→ Non‑registered investments
Example:
A 28‑year‑old saving for a home should almost always start with FHSA + TFSA.
Strategy: RRSP vs TFSA
You earn $70,000+
You want a tax refund
You expect lower income in retirement
You earn under $60,000
You want flexibility
You want tax‑free retirement income
Example: A 25‑year‑old earning $45,000 is usually better off with TFSA first.
Strategy: Combining Accounts
Smart planning uses multiple accounts together.
Use TFSA for emergency fund
Use RRSP for long‑term retirement
Use FHSA for home purchase
Use RESP for kids
Use non‑registered for extra investing
This creates tax‑efficient income streams for life.
Real‑Life Example
Income: $120,000 household
Goal: Save for retirement + kids’ education
Strategy:
RESP: $2,500 per child
TFSA: Build an emergency fund
RRSP: Use tax refund to top up RESP or TFSA
Income: $70,000
Goal: Buy a home in 5 years
Strategy:
Max FHSA ($8,000)
Max TFSA ($7,000+)
RRSP only if extra cash
Income: $80,000 Goal: Reduce OAS clawback
Strategy:
Use TFSA withdrawals instead of RRSP
Delay RRIF withdrawals
Use non‑registered capital gains (tax‑efficient)
Key Takeaways
Use the right account for the right goal
FHSA = best for homebuyers
TFSA = best all‑purpose tool
RRSP = best for high earners
RESP = free money for parents
Combining accounts creates long‑term tax efficiency