In February, Quebec RRSP deadlines often lead to rushed, unplanned contributions. This can result in over-contributions, missed deductions, or unsuitable investments.
This guide outlines essential actions before the March 2, 2026 deadline to lower your 2025 tax bill. Learn to calculate contributions, compare RRSPs, TFSAs, and FHSAs, and legally reduce Quebec and federal taxes.
As a financial planner in Quebec, I’ll provide a checklist to help you achieve tax savings and enhance retirement planning by the deadline.
Understanding Your RRSP Contribution Room in Quebec
Knowing your exact RRSP contribution room is crucial before the March 2 deadline. Over-contributing beyond the $2,000 lifetime buffer can incur a 1% monthly CRA penalty.
For the 2025 tax return (contributions made until March 2, 2026), your RRSP limit is generally 18% of your 2024 earned income, up to the federal maximum, minus pension adjustments. Your latest CRA Notice of Assessment or "My Account" shows this limit.
Check the official CRA RRSP contribution rules for precise dates.
How to Read Your Notice of Assessment
Find the "RRSP Deduction Limit for 2025" on your latest Notice of Assessment (received after filing your 2024 taxes). This amount includes unused room and considers your Quebec pension plan. Contributions made in the first 60 days of 2026 affect the 2025 deduction year.
Strategic Planning for Unused RRSP Room
If you have unused RRSP room from previous years, February is ideal for a multi-year catch-up plan. Spreading large contributions over several years can be more tax-efficient. This strategy helps avoid very high tax brackets while still lowering your overall tax bill.
Comparing RRSP, TFSA, and FHSA Strategies
Before contributing, compare RRSP with TFSA and the FHSA. Note regarding timing: While RRSP contributions made in the first 60 days of 2026 can reduce your 2025 taxes, FHSA contributions made now apply to the 2026 tax year only (the FHSA deadline for 2025 was December 31).
In Quebec, RRSP contributions reduce both federal and provincial taxable income; TFSA contributions do not. However, TFSA withdrawals are tax-free, while RRSP withdrawals are taxable.
Utilizing the FHSA for First-Time Home Buyers
Qualified first-time home buyers can use the FHSA for a tax deduction like an RRSP. Although you missed the 2025 deduction deadline for FHSA, opening one now allows you to start saving for the 2026 tax year immediately. Combining FHSA with RRSP remains the most effective strategy for young Quebec professionals.
| Account Type | Tax Treatment Now (Feb 2026) | Tax Treatment Later / Use Case |
| RRSP | Deductible on 2025 tax return | Withdrawals taxable; ideal for high-income retirement planning |
| TFSA | No deduction | Withdrawals tax-free; flexible for medium-term goals |
| FHSA | Deductible on 2026 tax return (deadline was Dec 31 for 2025) | Qualifying home purchase withdrawals tax-free |
Maximizing Tax Savings with RRSPs in Quebec
Understanding how RRSPs reduce both Quebec and federal taxes is essential. Your combined marginal tax rate, not just income, determines the real benefit. You can verify the deductibility of RRSP contributions on your provincial return via Revenu Québec.
For mid- to high-income earners in Quebec, combined marginal tax rates can exceed 45% in 2026. A $5,000 RRSP contribution could yield over $2,000 in tax savings, assuming you are in a sufficiently high bracket.
Quebec Examples (2026):
- Income $60,000–$100,000: combined rate ~37%, $5,000 RRSP = $1,850 refund
- Income $120,000–$180,000: combined rate ~45%, $5,000 RRSP = $2,250 refund
Calculating Your Marginal Tax Savings
Estimate your 2025 taxable income to determine your tax bracket. Then, target a specific RRSP contribution amount. This approach helps maintain a desirable marginal rate, respecting your contribution room and cash flow.
RRSPs and Your Long-Term Retirement Planning in Quebec
RRSPs are fundamental for retirement, not just for immediate refunds. When planning for the March 2 deadline, project your future income. It is important to choose the right long-term investments inside your RRSP rather than leaving the cash idle.
Your Quebec retirement income may include RRQ, OAS, pensions, RRIF withdrawals, TFSAs, and non-registered investments. Poor coordination can lead to higher tax brackets later, diminishing the current RRSP deduction's value.
Strategic Considerations for RRSP Contributions
If your income was temporarily low in 2025 (e.g., student, parental leave), contributing to an RRSP is still an option. You might delay claiming the deduction. Carry the contribution forward to a future year with a higher marginal tax rate to maximize savings.
| Situation | February Action | Strategic Outcome |
| High income in 2025 | Maximize RRSP up to room | Large current tax savings, strong retirement funding |
| Temporary low income | Contribute but defer deduction | Bigger tax benefit in future high-income year |
| Planning to buy first home | Prioritize RRSP now for 2025 deduction | Use refund to fund FHSA for 2026 |
Integrating RRSPs with Mortgage and Home Buying Plans
If you plan to buy a home in Quebec soon, align your RRSP strategy with your mortgage plan. RRSP contributions can reduce taxes and boost your down payment via the Home Buyers’ Plan (HBP).
The HBP allows you to borrow up to $60,000 (as of 2026) from your RRSP for a qualifying home purchase, repayable over 15 years.
Coordinating RRSPs with Mortgage Pre-Approval
Lenders assess income, debts, and down payment. A well-planned RRSP strategy before March 2 can enhance your down payment via HBP. This helps pass mortgage stress tests while maintaining sufficient liquidity for an emergency fund.
Your Essential RRSP Action Checklist for Quebec Residents
To simplify your RRSP actions before March 2, use a step-by-step checklist. A structured approach prevents over-contributions and missed Quebec tax deduction opportunities. For complex situations** (uneven income, home purchase, retirement in 5 years), we build long-term models** calculating marginal rates year-by-year and optimal contribution schedules.
Start by estimating your 2025 income, current savings, and any major life changes. Then, prioritize goals: immediate tax reduction, retirement savings, or home purchase preparation.
8-Step RRSP Action List for Quebec Residents
- Retrieve your latest CRA Notice of Assessment to confirm 2025 RRSP deduction limit.
- Log into “My Account” and double‑check unused RRSP room.
- Estimate your 2025 total income to identify your marginal tax bracket.
If 2025 income was lower than usual (student year, parental leave, job loss):
decide separately — claim deduction now or carry forward to a future year with higher tax rate.
- Decide allocation: Prioritize RRSP for 2025 tax relief?
- Note: FHSA contributions made now will count for 2026, not 2025.
- Choose investments inside the RRSP (ETFs, Mutual Funds, GICs).
- Set up a lump‑sum or automatic contribution before March 2.
- Keep all receipts and contribution slips for your 2025 tax return.
2 Real Cases: BK Financial Experience with February and RRSPs
Case 1: Montreal professional reducing taxes and planning retirement
A 42‑year‑old Montreal professional sought guidance in mid‑February. With $60,000 in unused RRSP room, she considered liquidating investments for a large contribution to lower her high 2025 tax bill.
We reviewed her income and Quebec tax brackets. Instead of one large sum, we created a four‑year RRSP catch‑up schedule. During consultation, we model multiple scenarios 2025–2035, showing how different RRSP strategies impact current taxes and future retirement income. The plan saved her thousands in combined taxes over time without pushing her into a lower bracket where the deduction is less valuable.
Case 2: Newcomer family using RRSPs for a first home
A self‑employed newcomer couple in Laval aimed to buy a home. They had no FHSA contributions in 2025.
Since the FHSA deadline for 2025 had passed, we focused on maximizing their RRSP contributions before March 2. This will generate a significant tax refund for the 2025 tax year. We then will use that refund to fund their FHSAs for the 2026 tax year, effectively using the government's money to build their down payment.
FAQ
Which tax year does the March 2, 2026 deadline apply to?
RRSP contributions made in the first 60 days of 2026 (up to March 2) can be deducted on your 2025 tax return or carried forward to future years.
How do I know my RRSP limit for the 2025 tax return?
Check your Notice of Assessment received after filing your 2024 taxes. Look for "RRSP Deduction Limit for 2025".
Can I contribute to my FHSA now to lower my 2025 taxes?
No. The deadline for 2025 FHSA contributions was December 31, 2025. Contributions made now will reduce your 2026 taxes.
Should I prioritize TFSA or RRSP before March 2?
If you had high income in 2025, an RRSP contribution before March 2 offers an immediate tax refund. TFSA contributions do not provide a tax deduction.
Can I contribute in February and claim the RRSP deduction in a later year?
Yes, you can contribute before the deadline to "lock in" the room but choose to defer the deduction on your tax return if you expect higher income in the future.
Ready to Optimise Your RRSP Strategy in Quebec Before March 2?
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Disclaimer: This article is for informational purposes only. Deadlines and tax rules are subject to change. Important: Contributions to an FHSA must be made by December 31 to be deductible for that tax year; the "first 60 days" rule applies to RRSPs only. Consult a tax professional to review your personal situation.
