Waiting for tax time? New survey shows more Canadians are relying on refunds

Spoiler alert: It’s been a rocky few years with inflation and a high cost of living, so it’s no surprise that household finances have taken a hit. We’ll look more closely at the survey responses to see how Canadians are allocating their refunds.

Tax refunds are becoming a financial lifeline for Canadians

When household budgets are doing well, people might be more likely to spend their refunds on things like dining out, entertainment, or travel. When times are tight, money tends to go towards everyday expenses. It’s telling that EQ’s survey found that only 9% of people are planning to spend their refund on non-essential purchases.

The survey went on to reveal that over a third (36%) of people are counting more on the money they get from their refund this year. That number jumps to 42% for Canadians between the ages of 18 and 34, who might not have a large emergency fund to fall back on. 

The survey also showed that women (41%) are more likely than men (32%) to rely on their refund to pay for everyday expenses. This could have something to do with the fact that women are paid less than men in almost every job sector, earning an average 88 cents on the dollar. The figures are even worse for racialized or Indigenous women.

So, what are Canadians planning to use their refunds for? Since discretionary spending is largely out, people are paying down debt (28%), funding their retirement accounts (28%), hanging onto the refund in cash (26%), and paying for everyday expenses (22%).*

Simply put, this year’s tax refunds are helping household budgets stay afloat.

A tax credit aimed at easing everyday costs

The goods and services tax (GST) or harmonized sales tax (HST) that you pay on everyday purchases can really add up. To help offset those costs, the government offers a GST/HST credit aimed at supporting lower- and middle-income Canadians with the rising cost of living.

If you’ve filed your taxes and qualify, you may already be receiving the credit as a direct deposit or by cheque every three months. In EQ Bank’s survey, nearly half (46%) of respondents believed they would be eligible.

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When asked how they planned to use the money, 48% said it would go toward everyday expenses, while similar shares said they would save it (32%) or use it to pay down debt (30%). Another 18% planned to put the funds into an emergency savings account.

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

• A one-time bonus payment in spring 2026 that’s equal to a 50% increase in the annual 2025–26 value of the GST credit
• A 25% increase in the Canada Groceries and Essentials Benefit for 5 years, starting in July 2026

This means that respondents who expected the GST/HST credit will likely receive the one-time bonus by June, followed by the enhanced benefit beginning in July. These increased payments should help households better manage savings, pay down debt, and cover everyday expenses.

The bottom line

The past few years have been financially challenging, and this survey shows that Canadians are approaching their money (and their tax refunds) with caution. Prioritizing debt repayment and savings isn’t just smart, it’s a strategy that can make you more financially resilient over the long term.

* Note: Respondents could select multiple uses for their refund, so percentages may total more than 100%.

Read more about taxes:

• How to fill out a personal tax return
• Smart strategies to maximize your tax return
• Claiming your spouse and dependents on your tax return

About Jessica Gibson

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

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