Updated Checked by the Tax-Services.ca editorial team How we check
Bring your accountant the goal and the numbers, and let them tell you where the money should sit for tax. If you’re in Ontario on $90,000, a $10,000 RRSP contribution lowers your income tax by $2,965. Working with an accountant on investment decisions is mostly about that kind of question: which account, which order, and what it costs in tax.
What can an accountant tell you about investing?
They can tell you which account fits your goal, how your income changes that answer from one year to the next, and how a sale will be taxed when you finally make it. That’s the tax side. They can’t pick stocks for you, and in Canada, recommending specific investments is a separate regulated activity. Ask what the person is licensed to do before you ask them for a product.
So split the job in two. The accountant handles the tax and record side. An adviser registered with your provincial securities regulator handles the products. Nobody here has checked any firm’s registrations, so look that up on the regulator’s own site.
What should you prepare before the meeting?
Your last notice of assessment, since it shows your RRSP and TFSA room. Your latest T4 or business income summary. A list of what you own and what you owe. And one sentence about the goal, such as a down payment in five years or retirement at 62.
Skip the goal and you get generic advice, which is a waste of the hour. Really.
A few questions are worth writing down before you sit down.
- Which account should get my next $1,000, and why that one?
- Will my tax rate likely be higher or lower when I take the money out?
- What happens to my taxes if I sell this holding next year?
- Which records do I need to keep for each account?
Which account should the money go into?
Your tax rate changes the answer. Here are the 2026 limits confirmed for this page.
| Account | 2026 figure | What it means |
|---|---|---|
| RRSP dollar limit | $33,810 | Or 18% of last year’s earned income, whichever is lower |
| TFSA annual limit | $7,000 | Room adds up from the year you turn 18 |
| FHSA annual limit | $8,000 | $40,000 over a lifetime |
| Over-contribution penalty | 1% a month | RRSP has a $2,000 buffer |
The RRSP deadline for the 2025 tax year was 2 March 2026. For the 2026 year no CRA date has been published that we could find, and 1 March 2027 is our own arithmetic, so confirm it before you rely on it.
How much does a contribution really save?
Your income sets the answer, and that’s where the accountant earns their time. We ran the same $10,000 RRSP contribution through the RRSP calculator for an Ontario resident at three incomes.
| Income | Tax saved by $10,000 | Real cost |
|---|---|---|
| $60,000 | $2,191.58 | $7,808.42 |
| $90,000 | $2,965.00 | $7,035.00 |
| $150,000 | $4,340.96 | $5,659.04 |
Put another way, each dollar you put in saves about 22 cents at $60,000, about 30 cents at $90,000 and about 43 cents at $150,000. That’s why two neighbours can get very different value from the same contribution at tax time.
At $90,000 with no pension, your room from last year’s earnings is $16,200, so the contribution fits. The saving is a deferral, though. You pay tax when you take the money out, so the RRSP wins clearly when your rate in retirement is lower than today’s. If you expect the same rate later, the TFSA calculator is worth a look, since its withdrawals aren’t taxed.
RRSP, TFSA or FHSA: how do you choose?
Start with the goal. Saving for a first home in the next few years points to the FHSA, and the FHSA calculator shows how the room builds. Money you might need on short notice often suits a TFSA, because pulling it out doesn’t add to your taxable income. Long-term retirement money at a high tax rate is where the RRSP tends to shine.
Most people end up using more than one. Your accountant can tell you the order that fits your income this year, and it may change next year.
What does time do to the same money?
Say you start with $10,000 and add $500 a month for ten years. At a steady 5% a year you’d reach $94,111. At 7% you’d reach $106,639. Nobody can promise either rate, and this page doesn’t. The gap of $12,528 shows why a return assumption deserves a question to your adviser, not a nod.
Selling is where tax surprises show up. The capital gains tax calculator shows what a sale in a non-registered account might cost. The 2026 inclusion rate wasn’t confirmed on an official page, so check the CRA’s current figure with your accountant before you sell anything large. Dividends are taxed differently again, and the dividend tax calculator covers that.
Mistakes that cost real money
Over-contributing is the classic one. Every dollar above the buffer costs 1% a month. Contributing to an RRSP with no plan for the refund is another, because a refund you spend isn’t a saving. Some people pick an investment for the tax break and never look at what it actually holds, which is how a good deduction ends up attached to a poor product. And plenty of people hold cash in a TFSA for years and call it investing.
Limits of this page: the numbers use a single province, 2026 rates and a simple income. Real returns move around, a pension adjustment reduces your room, and your own notice of assessment is the final word on limits.
The sources behind this page
RRSP, TFSA and FHSA limits come from Canada Revenue Agency pages, as read on 29 September 2026. Tax savings come from our RRSP calculator with 2026 Ontario and federal rates, and growth figures are illustrations with made-up rates. No level of government runs or endorses this site.
Frequently asked questions
Can my accountant pick investments for me?
Not unless they are also registered to give investment advice. An accountant covers the tax side, and a registered adviser covers products.
What is the RRSP dollar limit for 2026?
It is $33,810, or 18% of last year's earned income if that is lower.
How much can I put in a TFSA in 2026?
The annual limit is $7,000. Your total room depends on the years you have been 18 or older and a resident, so check your own room.
Does an RRSP refund mean I saved money?
It is a deferral. The withdrawal is taxed as income later, so the gain comes from paying tax at a lower rate then.
When is the RRSP deadline for the 2026 tax year?
The CRA date wasn't published where we looked. Counting 60 days from year end gives 1 March 2027, but confirm it.
- How to choose a tax preparer in Canada
How to decide if you need a tax preparer, what a preparer does, the questions to ask before you hire one and where to find free help in Canada
- Ontario income tax and sales tax in 2026
How Ontario income tax works in 2026: the five brackets, the surtax and health premium, the 13% HST, and the calculators that switch to Ontario