Articles
Plain-language reference articles on Canadian personal finance topics. 52 articles, each verified against an official source and linked to a calculator.
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What Changed in Mortgage Rules for 2026
2026 mortgage policy: insured price cap raised to $1.5M, 30-year amortization now allowed for first-time buyers and new construction (with 0.20% surcharge). Stress test unchanged.
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What Changed in Federal Income Tax for 2026
Federal lowest bracket rate is 14% (was 15% before July 2025). Basic Personal Amount $16,452 (was $16,129). All bracket thresholds indexed +2.7%. Other rates unchanged.
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What Changed in RRSP for 2026
2026 RRSP dollar limit rose from $32,490 to $33,810 (4.1%). Formula and other rules unchanged. HBP $60,000, FHSA $8,000/$40,000 unchanged.
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What Changed in OAS for 2026
OAS Q1 2026 max: $742.31 (65-74), $816.54 (75+). 2026 income-year clawback threshold $95,323. Full clawback ceiling $154,753 (65-74), $160,696 (75+) estimated.
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What Changed in TFSA for 2026
TFSA dollar limit stays at $7,000 for 2026 (third year unchanged) due to rounding rules. Cumulative room reaches $109,000 going into 2026.
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What Changed in CPP for 2026
Three meaningful CPP changes for 2026: YMPE $71,300 to $74,600, YAMPE $81,200 to $85,000, max monthly at 65 $1,433.00 to $1,507.65. Contribution rates unchanged.
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Canada Workers Benefit (CWB) Eligibility and Amount (2026)
Canada Workers Benefit is a refundable federal credit for low-income workers. 2026 max: ~$1,605 single, ~$2,772 family, +$828 disability supplement. Paid quarterly via ACWB.
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Charitable Donation Tax Credit (2026)
Federal donation credit: 15% on first $200, 29% on amount above (33% at top bracket). Combined federal + provincial savings: 36-53% on donations above $200. Carry forward up to 5 years.
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Medical Expense Tax Credit Rules (2026)
Medical Expense Tax Credit applies to medical expenses above the lesser of $2,814 (2026) or 3% of net income. Federal credit is 15% of the excess; provincial credit adds 5-11%.
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Dividend Gross-Up and Tax Credit Explained (2026)
Eligible dividends are grossed up 38% with 15.02% federal tax credit. Non-eligible (small business) dividends are grossed up 15% with 9.03% federal credit. Mechanism integrates corporate + personal tax.
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Federal Tax Brackets and Basic Personal Amount (2026)
2026 federal brackets: 14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $253,414, 33% above. Basic Personal Amount $16,452 (federal credit $2,303 at 14%).
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Marginal vs Effective Tax Rate Explained (2026)
Marginal rate is the tax on the next dollar of income; effective rate is total tax over total income. Only marginal rate matters for decisions about RRSPs, bonuses, capital gains, or income splitting.
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RRSP vs Pension Plan: Trade-offs of Workplace Pension Membership
DB pensions provide guaranteed income with employer contributions and longevity pooling. RRSPs offer control and portability. Most workers benefit from joining a workplace pension when offered.
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Salary vs Dividend for Owner-Managers: Which to Pay Yourself
Salary creates RRSP room and CPP credits but costs both halves of CPP. Dividend has no CPP but no RRSP room either. Most owner-managers benefit from a mix: salary up to YMPE then dividends.
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CPP vs OAS: Differences, Eligibility, and Timing
CPP is contribution-based; OAS is residency-based. CPP can start age 60, OAS only at 65. OAS is income-tested (clawback at $95,323 for 2026); CPP is not. Both can be deferred to 70 for permanent bonus.
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FHSA vs Home Buyers’ Plan (HBP): Which to Use for a First Home
Use FHSA before HBP for first home: tax-deductible contributions + tax-free withdrawals + no repayment. Combined maximum: $100,000 per person ($40K FHSA + $60K HBP) toward down payment.
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TFSA vs RRSP: Which Account to Use
TFSA wins for lower-income earners (~$50K and under) and those facing GIS clawback. RRSP wins for higher earners (35%+ marginal rate now, lower in retirement). Marginal-rate test is the core decision.
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CPP Enhancement Explained: CPP1 and CPP2 Phase-In
CPP enhancement adds CPP1 (1% on YBE-YMPE) and CPP2 (4% on YMPE-YAMPE) on top of base CPP. Phased in 2019-2024. Full benefit boost takes 40 years; 2026 retirees see modest improvement.
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CPP Disability vs CPP Retirement: Differences and Conversion
CPP Disability max 2026 is $1,741.20/month (more than CPP retirement at any age). Includes $610.46 flat rate + earnings portion. Auto-converts to CPP retirement at 65, typically at higher amount.
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GIS Eligibility and Income Cutoffs (2026)
Q1 2026 GIS max is $1,108.74/month single, $667.41 if spouse on OAS. Income cutoff is $22,488 for singles. GIS reduces ~$0.50 per dollar of non-OAS income. TFSA withdrawals don't count.
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OAS Deferral Bonus: Delaying OAS Past 65
OAS deferral bonus is 0.6%/month past 65, up to 36% at age 70. Breakeven age is ~84. Deferring is most valuable for healthy retirees with other income or those facing OAS clawback at 65-69.
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CPP Start-Age Decision: 60 vs 65 vs 70
CPP can start age 60-70. Early reduces by 0.6%/month, late adds 0.7%/month. Breakeven 60 vs 65 is age 73-74; 65 vs 70 is age 81-82. Most healthy 65-year-olds benefit from delaying.
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Fixed vs Variable Mortgage: How to Choose
Fixed mortgage locks rate for the term; variable tracks prime. Variable saves on average historically but exposes you to rate rises. Decision depends on discount size, term length, and risk tolerance.
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Mortgage Prepayment Penalty: Three Months’ Interest vs IRD
Variable mortgage prepayment penalty is 3 months' interest. Fixed mortgage penalty is greater of 3 months' interest or IRD. Major banks use posted-rate IRD which can be 5x discounted-rate IRD.
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Biweekly Mortgage Payments: Accelerated vs Regular Math
Accelerated biweekly mortgage payment is monthly / 2, paid 26 times per year. Total annual payment equals 13 monthly payments. Saves years of amortization vs regular biweekly.
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CMHC Mortgage Insurance Premium Tiers (2026)
CMHC mortgage insurance premium tiers: 0.6% at 65% LTV, 1.7% at 75%, 2.4% at 80%, 2.8% at 85%, 3.1% at 90%, 4.0% at 95%. Premium added to mortgage principal.
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GDS and TDS Mortgage Ratios Explained
GDS = housing costs / gross income (limit 39% insured). TDS = GDS plus all other debt (limit 44% insured). Both calculated at OSFI qualifying rate.
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OSFI B-20 Mortgage Stress Test: Rules and How to Pass
OSFI B-20 stress test qualifies borrowers at max(contract rate + 2%, 5.25%). Applies to insured and uninsured federally regulated mortgages. GDS limit 39%, TDS limit 44%.
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Group RRSP vs Individual RRSP: Which to Use
Group RRSP is employer-sponsored with payroll contributions and often employer matching. Both group and individual RRSPs use the same lifetime contribution room. Capture the full employer match before any other RRSP/TFSA contribution.
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RRSP Loan vs Cash Contribution: When Borrowing Makes Sense
RRSP loan funds an immediate contribution and uses the tax refund to repay. Works only when refund + extra year of growth exceed after-tax loan interest. Loan interest is NOT deductible.
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RRSP Withholding Tax Rates and How They Apply
RRSP withholding is 10% up to $5,000, 20% on $5,001-$15,000, and 30% above $15,000 (per single withdrawal). Quebec residents see different rates. Withholding is a prepayment, not final tax.
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RRSP to RRIF Conversion: Rules, Timing, and Minimum Withdrawals
RRSPs must convert to a RRIF, annuity, or be cashed out by Dec 31 of the year you turn 71. RRIF requires minimum withdrawals starting the next year, calculated as 1/(90-age) up to age 71, then by regulation.
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Spousal RRSP Attribution Rules and the Three-Year Rule
Spousal RRSP lets a higher earner contribute to a spouse's RRSP using the contributor's room. Withdrawals within 3 calendar years of the last spousal contribution are taxed back to the contributor.
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TFSA Successor Holder vs Beneficiary on Death
TFSA can name a successor holder (spouse only — takes over the TFSA tax-free) or beneficiary (anyone — gets the death balance tax-free, post-death growth taxable). Quebec residents must use a will.
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US Persons Holding a TFSA: Tax and Reporting Issues
US persons holding a TFSA face annual US tax on earnings, IRS Form 3520 and 3520-A reporting, and potential PFIC complications. Cross-border practitioners generally advise against TFSAs for US persons.
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TFSA Day Trading and Business Income Risk
Active day trading inside a TFSA can be assessed as business income by CRA, eliminating the tax shelter. Buy-and-hold investing is safe; high-frequency trading is risky.
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TFSA In-Kind Contributions and Tax Consequences
TFSA in-kind contribution is a deemed sale at fair market value: capital gains are taxable but capital losses are denied. Contribution amount equals FMV at transfer.
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TFSA Withdrawal and Re-Contribution Rules
TFSA withdrawals are tax-free and can be made anytime. Withdrawn amounts are added back to room on January 1 of the next year. Same-year re-contribution can trigger over-contribution tax.
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RRSP Home Buyers’ Plan: Withdrawal Limit and Repayment (2026)
RRSP Home Buyers' Plan allows up to $60,000 tax-free withdrawal per person ($120,000 per couple). Repay over 15 years starting year 2 after withdrawal.
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EI Maximum Insurable Earnings and Premium Rate (2026)
2026 EI MIE is $68,900. Employee rate 1.63% outside Quebec, 1.30% in Quebec. Maximum 2026 employee premium $1,123.07 outside Quebec.
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Disability Tax Credit Eligibility and Federal Amount (2026)
2026 federal Disability Tax Credit base amount is $10,138, generating $1,521 federal tax reduction. Apply via Form T2201. Unlocks RDSP, Child Disability Benefit, and other programs.
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CPP Survivor Benefit Eligibility and Amount (2026)
Maximum 2026 CPP survivor pension is $904.59/month at 65+ or $803.54/month under 65. Apply via Form ISP-1300. Combined CPP cap of $1,507.65/month applies.
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Canada Child Benefit Maximum Amounts (2026)
Maximum CCB July 2025-June 2026: $7,997/year per child under 6, $6,748/year ages 6-17. Full benefit if family net income under $37,487. Tax-free monthly.
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GST/HST Credit Amount and Income Limits (2026)
Maximum 2026 GST/HST credit is $533 single, $698 couple, $184 per child under 19. Tax-free quarterly. CRA calculates automatically; no application needed.
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What Counts as Earned Income for RRSP Purposes
Earned income for RRSP includes employment, self-employment, rental from real property, royalties, and certain disability pensions. It excludes investment income, OAS, CPP retirement, EI, and pension income.
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Capital Gains Tax in Canada (2026 Rules)
Capital gains in Canada are taxed at 50% inclusion on the first $250,000 of annual personal gains, and 66.67% on amounts above. Effective January 1, 2026.
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Ontario Land Transfer Tax Rates and Brackets (2026)
Ontario LTT is graduated from 0.5% to 2.5%. A first-time home buyer refund of up to $4,000 covers LTT on homes up to $368,333. Toronto buyers pay an additional municipal LTT.
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FHSA Contribution Limits and Withdrawal Rules (2026)
FHSA annual limit is $8,000 with $40,000 lifetime maximum. Unused room carries forward up to $8,000. Qualifying withdrawals for a first home are tax-free.
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Maximum CPP Retirement Benefit in 2026
Maximum CPP retirement pension at age 65 in 2026 is $1,507.65/month. Average new benefit is closer to $900/month. YMPE is $74,600.
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How RRSP Contribution Room Is Calculated (2026)
RRSP room equals 18% of prior-year earned income, capped at $33,810 (2026), minus any pension adjustment, plus unused room carried forward.
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OAS Clawback Threshold and Recovery Tax (2026)
The 2026 OAS clawback threshold is $95,323. The recovery tax is 15% of net world income above the threshold, capped at the OAS amount otherwise received.
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TFSA Contribution Limit and Cumulative Room (2026)
The 2026 TFSA contribution limit is $7,000. Cumulative room since 2009 is $109,000 going into 2026 for someone eligible every year and never contributed.