New Year, Smart Money Moves: What Ontarians Should Know in 2026
Happy New Year! I always say the way you start your financial year sets the tone for the next 12 months. Whether you’re focused on retirement, buying your first home, tax efficiency, or maximizing government benefits — 2026 brings opportunities (and responsibilities) worth planning around.
In this blog, I’ll walk you through the key programs, tax changes, and planning strategies that matter most for Ontarians this year. I’ve framed these through a lens of practicality — what you need to take advantage of, what’s new, and how it fits into your broader financial plan.
1. Understand Your Registered Accounts: RRSPs, TFSAs, FHSA
RRSP contribution limit increases are officially coming for 2026 — up to $33,810 (the maximum you can deduct) based on your earned income. This is an important planning number as you evaluate tax deductions for the upcoming year. Blueprint Financial
For those who prefer flexibility, the TFSA annual contribution limit remains at $7,000 for 2026. Even if it hasn’t changed, early-year contributions maximize potential tax-free growth throughout the year. Blueprint Financial
And don’t forget the First Home Savings Account (FHSA) if you are saving for your first home. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home are tax-free like a TFSA — a powerful combo if used strategically. Canada+1
Planning tip: If you’re eligible, consider coordinating RRSP, TFSA, and FHSA contributions according to your income forecasts and tax bracket. Making thoughtful decisions early in the year — rather than scrambling in March — typically yields better outcomes.
2. Credits and Benefits You Might Be Missing
Ontario Sales Tax Credit (OSTC)
If you qualify based on income, this credit can put up to $371 per adult and per child back in your pocket over the year to help offset sales tax — especially helpful for low- and middle-income families. Canada
Multigenerational Home Renovation Tax Credit
A new federal refundable credit lets you claim 15% of eligible expenses (up to $50,000) when you create a separate living unit for a senior or adult with a disability — up to $7,500 in credit. taxdepot.ca
Ontario Fertility Treatment Tax Credit (proposed)
The province has outlined plans for a refundable tax credit for fertility treatments (including IVF and related expenses), potentially worth up to $5,000 per year. While this credit is new and subject to review, it’s worth tracking for 2025 filing. budget.ontario.ca
3. Federal Benefits and Safety Nets
Canada Disability Benefit (CDB)
This new federal program, rolling out through 2025–2026, provides up to $2,400 per year for eligible low-income adults with disabilities. It’s transformative for those it serves — and worth reviewing if you, a family member, or a client qualifies. Canada
CPP Enhancements Continue
Canada Pension Plan contributions are increasing, and more people will see incremental boosts to their CPP payments over time — helping retirement income sustainability. Canada
4. Practical Planning Moves for 2026
✔ Make retirement account strategy deliberate
Don’t just contribute blindly. Think tax brackets at contribution time and at withdrawal time. Example: contributing early in the year maximizes tax-deferral benefits and growth potential in both RRSP and FHSA.
✔ Confirm your contribution room early
Know your TFSA, RRSP, and FHSA limits as soon as possible — that avoids costly mistakes and helps you plan your cash flow effectively. Blueprint Financial
✔ Use tax credits wisely
Small credits like the OSTC and new renovation incentives can add up significantly when applied correctly.
✔ Align education savings with grants
If you’re saving for children’s education, maximizing contributions early in the year to RESPs can capture grants sooner and increase compounded growth. Johnston Morrison Hunter & Co.
Final Thoughts
2026 is shaping up to be a year of both continuity and opportunity. Some programs — like TFSA limits — remain stable, while others — like the FHSA and multigenerational renovation credit — offer new strategic planning avenues.
Whether you’re focused on retirement, home ownership, tax optimization, or accessing government support, the smart move is to plan early, align your goals with the tools available, and get professional help where complexity rises.
If you’d like help turning these tax changes and government programs into a clear action plan for your financial goals, contact us — let’s make this year your best yet.