Tax-Loss Harvesting Year-End Checklist for Canadians (2026)
Ten steps to harvest capital losses in a non-registered account without tripping the superficial loss rule, plus the 2026 trading calendar.
The 2026 calendar
A sale only counts in 2026 if it settles by December 31. These are the days that matter, from the TSX's 2026 holiday calendar; confirm with your broker, because some brokers set earlier cut-offs.
- Thursday, December 24: TSX closes early, at 1:00 p.m.
- Friday, December 25: Christmas Day, markets closed.
- Monday, December 28: TSX closed in lieu of Boxing Day, which falls on a Saturday.
- Tuesday, December 29: trading resumes. A sale placed today settles on Wednesday, December 30.
- Wednesday, December 30: the last day to place a sale so it settles on Thursday, December 31 under one-day settlement.
Do not plan to use the last day. A delayed or failed settlement pushes the loss into 2027. Finishing in the first half of December leaves room.
The checklist
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1
Find your gains so far
Pull your realized capital gains for the year from your broker's reports, including gains the funds you hold have already distributed. Losses you harvest first offset these gains, so this number tells you how much a harvested loss can save.
Gains this year, in non-registered accounts only
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2
List unrealized losses in non-registered accounts
Losses inside an RRSP, TFSA, RRIF, RESP or FHSA do nothing for your taxes. Only holdings in taxable accounts count. Note each position's adjusted cost base (ACB) and current value, in Canadian dollars.
Only taxable accounts can harvest a loss
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3
Count losses you already carry
Net capital losses from earlier years, shown on your last notice of assessment, can be applied to this year's gains. This year's losses are used first against this year's gains. Anything left over can be carried back three years with Form T1A or forward without limit.
Check your notice of assessment
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4
Pick the positions to sell
Start with the largest losses. Selling a small loss to save a few dollars of tax is rarely worth the trading cost and the paperwork. Remember that a loss only saves tax if there are gains to offset, now or in the carryback and carryforward years.
Large losses first
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5
Check the superficial loss rule
A loss is denied if you, or someone affiliated with you, buys the same or an identical property in the 30 days before or after the sale and still holds it 30 days after. Affiliated means your spouse or common-law partner, a corporation either of you control, and a trust you are a beneficiary of. It also covers your own RRSP and TFSA.
30 days before and after settlement
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6
Choose a replacement that is not identical
To stay invested, buy a similar but not identical fund, for example one that tracks a different index. The CRA has not ruled on specific ETF pairs, so treat any pair as a judgment call and keep your reasoning on file.
Different index, not just different issuer
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7
Turn off automatic reinvestment
A dividend reinvestment plan that buys more of the same fund inside the 30-day window can trigger the rule on part of your loss. Switch it off before you sell, in every account you and your spouse hold.
Check every account in the household
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8
Mind the settlement date
For tax purposes a sale counts on the day it settles, not the day you place the order. Since May 2024 settlement is one business day after the trade (T+1), so a sale must be placed early enough that it settles by December 31.
See the 2026 calendar below
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9
Convert US-dollar trades to Canadian dollars
Your gain or loss is calculated in Canadian dollars, using the exchange rate on the day you bought and the day you sold. A holding that is down in US dollars can be flat or up in Canadian dollars, and the reverse.
Work in CAD, not in USD
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10
Record everything
Keep the trade confirmations and update your ACB records for the sale and for the replacement purchase. Report the sales on Schedule 3 of your return, and file Form T1A if you are carrying a loss back.
Confirmations, ACB, Schedule 3
Details behind these steps: the superficial loss rule and the full tax-loss harvesting guide.
Frequently asked questions
When is the last day to harvest a tax loss in 2026?
The sale has to settle by December 31, 2026. With one-day settlement, a trade placed on Wednesday, December 30 settles on Thursday, December 31, which is the latest possible day. The TSX is closed on December 25 and December 28 and closes early on December 24, so most people should finish well before the holidays.
Can I buy the same ETF back right away?
Not without risk. Buying the same or an identical ETF within 30 days before or after the sale can make it a superficial loss, which denies the loss. Wait at least 31 days after the sale settles, or switch to a similar fund that is not identical.
Does harvesting a loss in my RRSP or TFSA help?
No. Losses inside registered accounts are not deductible. Buying the same security in a registered account within the 30-day window can also deny a loss from your taxable account, and that denied loss is permanently lost.
How much tax does a harvested loss save?
Half of a capital loss offsets half of a capital gain, so the saving is your marginal rate on the capital gain, which is half of your marginal tax rate. In Ontario at the top bracket that is about 26.8 cents per dollar of loss. Use the estimator to see yours.
This is education, not tax, legal or investment advice. The rules have exceptions, and your situation may differ. Talk to a licensed Canadian chartered professional accountant or certified financial planner before you act.
See what a harvested loss could save you
Enter your gains, your losses and your province to estimate the tax saved, and how to choose a replacement investment.
Open the Tax-Loss Harvesting EstimatorTest every sale against the 30-day rule
The Tax-Loss Harvesting and Superficial Loss Tracker checks each sale against the 61-day window across your accounts, your spouse's and your TFSA or RRSP, and shows the first safe day to buy back.