Many year-end decisions for an owner-managed corporation have to be made before December 31. This guide lists the items I review with clients in Toronto, ON, with links to CRA and IRS pages so you can check each point yourself. It is general information, not advice for your situation.
The 2026 tax-year context
- RRSP dollar limit: $33,810 for 2026 and $35,390 for 2027. TFSA dollar limit: $7,000 for 2026. 2026 YMPE: $74,600. (CRA: limits table)
- Your own RRSP deduction limit is generally the lesser of 18% of your earned income in the previous year and the annual dollar limit, adjusted for pension adjustments and unused room. (CRA: RRSP deduction limit)
- Finance Canada's September 2026 backgrounder lists the cancellation of the proposed increase in the capital gains inclusion rate among current measures. (Finance Canada)
- Capital cost allowance (CCA) rules for 2026 include an enhanced first-year deduction for some property, and a proposal for immediate expensing. See section 6.
Figures were checked on CRA, Finance Canada, and IRS pages in October 2026. Rates, limits, and proposals can change before year-end, so confirm the current figure before you act.
1. Salary or dividends
Salary and dividends are taxed differently, and the choice affects more than this year's tax bill. These points can be checked on official pages:
- RRSP room. CRA describes earned income as employment earnings, self-employment earnings, and certain other income. Dividends from your own corporation are not among the items listed, so a year paid only in dividends does not add new RRSP room. (CRA: RRSP definitions)
- Payroll. Paying salary means withholding and remitting payroll deductions on CRA's remittance schedule and filing T4 slips after year-end. (CRA: employers' guide T4001)
- Year-end bonus. A salary or bonus accrued at year-end is generally deductible in that year only if it is paid within 180 days after the corporation's year-end; otherwise the deduction moves to the year it is paid. (Income Tax Act, s. 78(4)) The employee reports a bonus on the T4 for the year it is received. (CRA: bonuses)
The right mix depends on the corporation's income, your other income, your family situation, and your cash needs. Ask me to model the options before you set the amounts. Rate comparisons are not included here because they change each year.
2. RRSP contributions
- Contributions made in the first 60 days of 2027 can be deducted on your 2026 return. For 2025 the deadline was March 2, 2026. (CRA: line 20800) By my count the 2026 deadline is March 1, 2027; confirm the date on the CRA page when it is published.
- Your RRSP deduction limit for 2027 is based in part on your earned income in 2026. (CRA: RRSP definitions) If you want salary to count toward 2027 room, it must be paid in 2026.
- Find your limit in your CRA account or on your latest notice of assessment. Do not rely on an estimate from memory.
3. TFSA contributions
- The 2026 TFSA dollar limit is $7,000. Your own room depends on your history; check it in your CRA account. (CRA: limits table, CRA: calculate your room)
- A withdrawal is added back to your room on January 1 of the following year, not in the same year. (CRA: withdrawing from a TFSA)
- Contributing more than your room can lead to a monthly tax on the excess. (CRA: over-contributions)
4. The December 15 instalment
- Individuals may have to pay instalments if net tax owing is more than $3,000 for 2026 and in either 2025 or 2024. Due dates are March 15, June 15, September 15, and December 15. (CRA: individual instalments) December 15, 2026 is a Tuesday.
- Owner-managers paid mostly by dividends often have little tax withheld at source, so instalments are worth checking. This is a general observation; your own numbers decide.
- Corporations follow a separate schedule: monthly instalments, or quarterly if the corporation meets CRA's conditions (CCPC, perfect compliance history, taxable income of $500,000 or less, and taxable capital of $10 million or less). A calendar-year corporation paying quarterly pays on March 31, June 30, September 30, and December 31. (CRA: corporate instalment dates)
5. Year-end HST and bookkeeping clean-up
- GST/HST: monthly and quarterly filers file and pay one month after the period ends. Most annual filers file and pay three months after fiscal year-end, so a corporation with a December 31 year-end files by March 31. (CRA: GST/HST deadlines)
- Corporate income tax: the balance is generally due two months after year-end, or three months for a CCPC that meets CRA's conditions. (CRA: balance-due day)
A practical clean-up list before the books close (these are good practice, not CRA rules):
- Reconcile every bank, credit card, and loan account to December 31.
- Review accounts receivable and payable, and write off balances you will not collect.
- Check that the HST account agrees with the returns filed and with your records.
- Confirm December payroll and remittances are recorded, and that salaries, bonuses, and dividends are documented.
- Review shareholder loan balances and personal expenses booked to the corporation. Balances owing by a shareholder have special rules, so ask me before year-end.
- Collect receipts, mileage logs, and asset purchase invoices while they are easy to find.
6. Capital cost allowance timing
- CCA is generally available when the property becomes available for use, which is usually the earlier of the date you first use it to earn income, the time it is delivered and capable of producing a product or service, and the second tax year after acquisition. Buying an asset on December 30 does not help if it is not in use or delivered before year-end. (CRA: available for use rules)
- The half-year rule normally limits first-year CCA to half of net additions. For property acquired on or after January 1, 2025 that becomes available for use before 2034, CRA's folio describes enhanced first-year measures enacted on March 26, 2026 by Bill C-15. Eligibility depends on the class of property. (CRA: Income Tax Folio S3-F4-C1)
- Proposal, not confirmed as law: in September 2026 Finance Canada proposed immediate expensing for most depreciable property acquired on or after September 15, 2026, with exclusions such as buildings in classes 1 and 3. (Finance Canada backgrounder) I will confirm its status before your return is filed. Do not buy an asset for tax reasons alone.
7. US fourth-quarter estimated payment (cross-border clients)
- For calendar-year 2026, the fourth estimated tax payment is due January 15, 2027. You do not have to make it if you file your 2026 Form 1040 by February 1, 2027 and pay the entire balance due with the return. (IRS: Form 1040-ES)
- The four 2026 due dates are April 15, June 15, September 15, and January 15. (IRS: estimated tax due dates)
- Individuals generally must make estimated payments if they expect to owe $1,000 or more when the return is filed. (IRS Taxpayer Advocate Service)
- To avoid an underpayment penalty, the IRS summary says to pay 90% of the current year tax or 100% of the prior year tax, whichever is smaller. (IRS Publication 6147-B) Other safe-harbour rules can apply, so confirm for your case.
If you live in Canada and file a US return, how Canadian tax paid is credited against US tax depends on your facts. See my Canada-US cross-border service.
Key dates at a glance
- December 15, 2026: individual instalment (if required).
- December 31, 2026: salary and bonuses paid in the year, TFSA and asset purchase timing, corporate quarterly instalment for calendar-year CCPCs that pay quarterly.
- January 15, 2027: US fourth-quarter estimated payment (unless you file by February 1 and pay in full).
- First 60 days of 2027: RRSP contributions for the 2026 tax year.
- March 31, 2027: annual GST/HST return and payment for a corporation with a December 31 year-end.
Next step
If you would like me to review your year-end position, book a call. I will ask for your latest financial statements, payroll records, and notices of assessment.
This guide is general information based on CRA, Finance Canada, and IRS pages available in October 2026. It does not replace advice for your situation. Rules, limits, and proposals change; check the linked pages or ask me before you act.