Are you waiting for tax time? New survey shows more Canadians are counting on refunds

Spoiler alert: It’s been a difficult few years with inflation and a high cost of living, so it’s no surprise that household funds have taken successful. We’ll take a more in-depth take a look at the survey responses to see how Canadians distribute their refunds.

Tax refunds have gotten a financial lifeline for Canadians

When household budgets are in good condition, persons are more more likely to spend their refunds on things like dining out, entertainment or travel. When times are tough, money tends to go toward on a regular basis expenses. It’s telling that EQ’s survey found this Only 9% of individuals plan to spend their refund on non-essential purchases.

The survey further found that over a 3rd (36%) of persons are expecting more from the cash they receive from their refund this yr. For Canadians aged 18 to 34, who may not have a big emergency fund to fall back on, that number jumps to 42%.

The survey also found that ladies (41%) are more likely than men (32%) to depend on their refunds to pay for on a regular basis expenses. This could possibly be as a result of the indisputable fact that women are paid lower than men in almost every career, earning a mean of 88 cents on the dollar. The numbers are even worse for racialized or indigenous women.

What do Canadians need to use their refunds for? With discretionary spending largely absent, persons are paying off debt (28%), funding their retirement accounts (28%), keeping reimbursements in money (26%) and paying for on a regular basis expenses (22%).*

Put simply, this yr’s tax refunds will help keep household budgets afloat.

A tax credit to alleviate on a regular basis costs

The goods and services tax (GST) or harmonized sales tax (HST) you pay on on a regular basis purchases can really add up. To offset these costs, the federal government is offering a GST/HST credit designed to support low- and middle-income Canadians as the fee of living increases.

If you have filed your tax return and meet the necessities, it’s possible you’ll receive the credit as a direct deposit or check every three months. In the EQ Bank survey, almost half (46%) of respondents believed they were eligible.

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When asked how they plan to make use of the cash, 48% said it could be used for on a regular basis expenses, while similar shares said they’d reserve it (32%) or use it to repay debt (30%). Another 18% planned to place the cash into an emergency savings account.

The survey was conducted before major changes to this system were announced in early 2026. In response to global economic uncertainty and rising costs of living, Parliament introduced the Canada Groceries and Essentials Benefit Act, which replaces the GST/HST credit. Under this laws, eligible Canadians will receive:

• A one-time bonus payment In spring 2026, this represents a 50% increase within the annual value of the GST credit over 2025-2026
• A 25 per cent increase within the Canada Groceries and Essentials Benefit for five years, starting in July 2026

This signifies that respondents who were expecting the GST/HST credit will likely receive the one-time bonus by June, followed by the prolonged advantages starting in July. These increased payments are intended to assist households higher manage their savings, repay debts and canopy on a regular basis expenses.

The final result

The previous couple of years have been financially difficult, and this survey shows Canadians are being careful with their money (and their tax refunds). Prioritizing debt payoff and savings shouldn’t be only smart, it is also a method that could make you more financially resilient in the long term.

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About Jessica Gibson

Jessica Gibson is a private finance author with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about bank cards, insurance, and debt management.