A recent survey conducted by TD Bank indicates that a growing number of Canadians are planning to save or invest their tax refunds this year, rather than spending them. The survey, released on May 4, 2026, highlights a shift in financial behavior as individuals prioritize long-term financial security amid ongoing economic challenges.
Key Findings of the Survey
According to the TD survey, 47% of respondents said they intend to put their tax refunds into savings, while 22% plan to invest the money. Only 18% reported that they would use the refund for everyday expenses, and 13% plan to spend it on a major purchase or treat. This marks an increase from previous years, where spending on immediate needs was more common.
Reasons Behind the Trend
Financial experts suggest that the trend toward saving and investing is driven by concerns about inflation, rising interest rates, and economic uncertainty. Many Canadians are focusing on building emergency funds and contributing to retirement accounts. The survey also found that younger Canadians, particularly those aged 18 to 34, are more likely to invest their refunds compared to older generations.
Regional Differences
The survey revealed regional variations: residents of British Columbia and Ontario were more inclined to invest, while those in Atlantic Canada and the Prairies leaned toward savings. Quebec showed a balanced approach between saving and debt repayment.
Implications for Financial Planning
The findings underscore the importance of tax refunds as a financial tool. Financial advisors recommend that Canadians consider their overall financial goals before deciding how to use their refund. Paying down high-interest debt, contributing to a Tax-Free Savings Account (TFSA), or adding to a Registered Retirement Savings Plan (RRSP) are all viable options.
Expert Advice
Emily Turner, a financial planner at TD Wealth, commented, “Using your tax refund wisely can have a significant impact on your long-term financial health. Whether you choose to save, invest, or pay down debt, it’s important to align your decision with your personal financial plan.”
The survey was conducted online by Environics Research Group between March 10 and March 20, 2026, among a sample of 1,500 Canadian adults. The margin of error is plus or minus 2.5 percentage points, 19 times out of 20.
