Ready for tax time? New survey exhibits extra Canadians are counting on refunds

Spoiler alert: It’s been a rocky few years with inflation and a excessive value of residing, so it’s no shock that family funds have taken successful. We’ll look extra intently on the survey responses to see how Canadians are allocating their refunds.

Tax refunds have gotten a monetary lifeline for Canadians

When family budgets are doing effectively, folks is likely to be extra prone to spend their refunds on issues like eating out, leisure, or journey. When occasions are tight, cash tends to go in direction of on a regular basis bills. It’s telling that EQ’s survey discovered that solely 9% of individuals are planning to spend their refund on non-essential purchases.

The survey went on to disclose that over a 3rd (36%) of individuals are counting extra on the cash they get from their refund this yr. That quantity jumps to 42% for Canadians between the ages of 18 and 34, who may not have a big emergency fund to fall again on.

The survey additionally confirmed that ladies (41%) are extra seemingly than males (32%) to depend on their refund to pay for on a regular basis bills. This might have one thing to do with the truth that girls are paid lower than males in nearly each job sector, incomes a median 88 cents on the greenback. The figures are even worse for racialized or Indigenous girls.

So, what are Canadians planning to make use of their refunds for? Since discretionary spending is basically out, individuals are paying down debt (28%), funding their retirement accounts (28%), hanging onto the refund in money (26%), and paying for on a regular basis bills (22%).*

Merely put, this yr’s tax refunds are serving to family budgets keep afloat.

A tax credit score aimed toward easing on a regular basis prices

The items and companies tax (GST) or harmonized gross sales tax (HST) that you simply pay on on a regular basis purchases can actually add up. To assist offset these prices, the federal government presents a GST/HST credit score aimed toward supporting lower- and middle-income Canadians with the rising value of residing.

For those who’ve filed your taxes and qualify, you could already be receiving the credit score as a direct deposit or by cheque each three months. In EQ Financial institution’s survey, almost half (46%) of respondents believed they might be eligible.

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When requested how they deliberate to make use of the cash, 48% mentioned it will go towards on a regular basis bills, whereas comparable shares mentioned they might reserve it (32%) or use it to pay down debt (30%). One other 18% deliberate to place the funds into an emergency financial savings account.

The survey was performed earlier than main adjustments to this system have been introduced in early 2026. In response to international financial uncertainty and rising residing prices, Parliament launched the Canada Groceries and Necessities Profit Act, which replaces the GST/HST credit score. Underneath this laws, eligible Canadians will obtain:

• A one-time bonus fee in spring 2026 that’s equal to a 50% enhance within the annual 2025–26 worth of the GST credit score
• A 25% enhance within the Canada Groceries and Necessities Profit for five years, beginning in July 2026

Which means respondents who anticipated the GST/HST credit score will seemingly obtain the one-time bonus by June, adopted by the improved profit starting in July. These elevated funds ought to assist households higher handle financial savings, pay down debt, and canopy on a regular basis bills.

The underside line

The previous few years have been financially difficult, and this survey exhibits that Canadians are approaching their cash (and their tax refunds) with warning. Prioritizing debt compensation and financial savings isn’t simply good, it’s a technique that may make you extra financially resilient over the long run.

* Observe: Respondents may choose a number of makes use of for his or her refund, so percentages could complete greater than 100%.

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About Jessica Gibson

Jessica Gibson is a private finance author with over a decade of expertise in on-line publishing. She enjoys serving to readers make knowledgeable selections about bank cards, insurance coverage, and debt administration.