Nearly 6 in 10 Working Canadians Struggle to Make Ends Meet Each Month Despite Feeling They Earn a Decent Salary – Canadians Divided Around their Financial Outlook in 2026: H&R Block Canada Survey

Around two-thirds of Canadians expect a tax refund at a time when many feel under financial strain, H&R Block points to top missed tax credits and deductions

CALGARY, Alberta, April 21, 2026 (GLOBE NEWSWIRE) -- While more than half of Canadians (53%) say they feel good about their current financial situation, 46% aren’t feeling so upbeat, and 54% are concerned that 2026 is going to be a challenging year for them financially. The new survey commissioned by H&R Block Canada reveals that nearly 6-in-10 Canadians (58%) that earn an income say that despite making a decent salary, they struggle to make ends meet for everyday expenses, such as groceries, gas and household essentials. Nearly half of working Canadians (46%) say their paycheque only covers their day-to-day living costs without money left over. Given the high day-to-day cost of living, nearly three-quarters of all Canadians (72%) say they plan to reduce their spending in 2026, and 77% of those putting money aside say they’re going to put less into savings as a result of higher costs.

“It’s clear that many Canadians are feeling the financial strain of the high cost-of-living outpacing their income level, but the good news is that around two-thirds of Canadians expect a refund this tax season,” said Yannick Lemay, a Tax Expert at H&R Block Canada. “Let’s be real, while very few Canadians get excited about filing their taxes, it’s well worth investing the time and expertise needed to make sure you claim all the tax credits and benefits you’re eligible for. We see so many cases where Canadians have left money on the table; sometimes over many years. In fact, through our Free Second Look program where we review client returns filed elsewhere the prior year, on average we find about $2,725 of missed money for about 60% of those clients.”

Three-quarters of Canadians are concerned that cost of living outpaces their income: Overall, 79% of working Canadians are concerned that their income is not keeping pace with cost-of-living realities, with 72% of Canadians planning to reduce their spending in 2026 due to pricing pressures. This compares to 14% saying they plan to increase spending this year as they’re less focused on putting extra cash into savings. In addition, over half (54%) of Canadians worry 2026 is going to be a challenging year for them.

More than a third of Canadians can’t stretch their paycheque to cover monthly expenses: Overall, 35% of Canadians say they can’t stretch their paycheque to see them through to their next pay day, often having to revert to using their credit card, overdraft or use bridging loans until they get their next paycheque.

Canadians are divided on how they feel about their financial well-being: While 53% say they feel good about their current financial situation, 46% are not feeling positive. In addition, while 62% of working Canadians say they live comfortably at their income level, nearly 4-in-10 Canadians (38%) report that they’re not living comfortably at their income level.

Half of Canadians that earn an income struggle to make ends meet: More than half (58%) of Canadians that earn an income say that despite having a decent salary, it’s hard to make ends meet for everyday expenses such as groceries, gas, household essentials, etc. From a regional standpoint, Atlantic Canada had the highest level of concern around making ends meet at 67%, followed by Alberta (66%), Saskatchewan/ Manitoba (64%), Ontario (59%), British Columbia (53%) and Quebec (51%).

More than half of Canadians put money away each month: Overall, 55% of Canadians report that they’re currently saving or putting aside money each month compared to 41% who say they’re not able to.

Nearly half of Canadians worry about paying off debt: Despite the more recent interest rate reductions, 46% of Canadians with debts say they’re concerned about their ability to pay off debt such as credit cards, loans, and/or mortgage repayments.

Around 2-in-3 Canadians expect a refund, but around 4-in-10 are not confident they know how to maximize their tax return: Overall, 65% of all Canadians say they’re expecting a refund this tax season. However, a large portion of Canadians report having no idea whether or not they’ll get a refund. Canadians are divided when it comes to their understanding of tax related credits and deductions. While 59% say they feel they have a good understanding of all the tax credits and benefit available to maximize their return, 41% are not confident in their understanding.

More than 2 million Canadians don’t plan to file their taxes: In total, 7% of Canadians say they don’t plan to file their taxes, which could mean they’ll miss out on accessing year-round tax credits and benefits. This represents more than 2 million adult Canadians.

Nearly 2 out of 3 Canadians are not aware you can amend your tax returns: A separate study commissioned by H&R Block Canada in 2025 revealed that 65% of Canadians were not aware that you can amend your tax returns from the last 10 years to claim any benefits, deductions, or credits that you were entitled to but missed. 

Nearly 4-in-10 Canadians think they may have left money on the table: When learning that you can amend prior tax returns, the 2025 study revealed that 38% of Canadians believed there are amounts they could still claim. In knowing they can amend prior tax returns, more than a third (34%) say they’re inclined to review prior returns in case they miss any tax benefits, credits or deductions that they were legible for. 

Out of the more than 400 tax credits and deductions available, every year Canadians unknowingly leave money on the table. From medical expenses, disability and caregiver credits, to child-related credits and benefits, H&R Block Canada points to some of the most commonly missed tax credits and deductions, including: 

1. Child Care Expense Deduction: A tax-free monthly payment to cover the cost of raising a child. For the July 2025 – June 2026 time period, the maximum annual benefits are $7,997 per child under 6, and $6,748 per child aged 6–17. For children with disabilities, the maximum Child Disability benefit is $3,411 per year per eligible child. 
2. Canada Caregiver Credit (CCC): For Canadians supporting a spouse, partner, child, or dependent with a disability or medical condition, up to $8,601 can be claimed on their 2025 tax return. A signed doctor’s note might be needed by the CRA.
3. Medical Expense Tax Credit (METC): For expenses, including prescription glasses (and also prescription sunglasses!), medications, medical devices like hearing aids, travel for medical treatment (if over 40 km), gluten-free food (for celiac disease) and therapy and mental health services. Many people overlook the amount they pay on top of what their insurance covers. If your insurance covers 80% of a medication or treatment, for example, then you can claim the remaining 20% as a deductible.
4. Canada Workers Benefit (CWB): A refundable tax credit for modest-income individuals based on adjusted family net income, for up to $1,633 for single Canadians, and a supplement of up to $843 for people with a disability. Amounts vary in Alberta, Nunavut and Quebec.
5. Tuition and Education Tax Credits: Students can transfer up to $5,000 of unused tuition credits to a parent, spouse, or grandparent; many students forget to claim past tuition fees. Any unused credit can be carried forward without limit of time. 
6. Home Accessibility Tax Credit (HATC): Covers renovations for seniors (65+) or disabled individuals to improve home accessibility, with a credit of 15% (12.5% in Quebec) or up to $3,000 (or $2,500 in Quebec) on expenses up to $20,000 (including GST/HST). 
7. Moving Expenses Deduction: If you move at least 40 kilometers closer to work or school, you may be eligible to deduct moving costs like transportation and travel, temporary living expenses and real estate fees.
8. Disability Tax Credit (DTC): For individuals with prolonged physical or mental impairments up to $10,138 in non-refundable tax credits. Many Canadians with conditions like ADHD, diabetes, or mental health conditions qualify but don’t claim. 
9. First-Time Home Buyers’ Tax Credit (HBTC): A $10,000 credit (saves $1,500 in taxes) for first-time home buyers ($1,200 in Quebec). 
10. Claiming Home Office Expenses: Your employer will need to sign a T2200 form outlining what they’ve required you to pay for as part of your employment. You’ll fill out a T777 statement of employment expenses to be able to claim a portion of your home office expenses. Keep your receipts for 6 years as the CRA can audit up to 6 years following a filing.

“Every year thousands of Canadians miss out on maximizing their tax refund and putting money back in the pockets. It important to remember, even if you have no or minimal income, the only way to access a number of year-round tax credits and benefits is to file your current year’s taxes, which can equate to hundreds and even thousands of dollars you risk missing out on,” added Lemay.

About the 2026 survey: Findings are from a survey conducted by H&R Block from Feb.19-23, 2026, among a sample of 1,545 Canadians who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19x out of 20. 

About the 2025 survey: Findings are from a survey conducted by H&R Block from Feb. 12-13, 2025, among a sample of 1,790 Canadians who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19x out of 20.

About H&R Block Canada: A trusted partner of Canadians for over 60 years, H&R Block Canada the market leader in assisted tax preparation. Serving almost 1,000 locations across the country that includes a network of Canadian franchise business owners, H&R Block's team of Tax Experts use the latest in technological advances combined with real-world expertise to help people file taxes in office, file remotely, or use our award-winning tax software, named moneyGenius.ca’s Best Tax Software two years in a row. H&R Block Canada can support in the preparation of personal, small business, corporate, U.S., rental, and estate taxes. H&R Block's comprehensive education program, Tax Academy, ensures our Tax Experts continually update their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK. 

For more information, contact: H&R Block c/o Ketchum: hrblockmediainquiries@ketchum.com

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