As of April 22, 2025, the Canada Revenue Agency (CRA) reported that approximately 12 million Canadians received tax refunds for the 2023 tax year. This figure represents about 58.6% of the 20.5 million individual income tax returns assessed during the 2025 tax-filing season.​

The total amount refunded was approximately $26.3 billion, with an average refund of $2,000 per recipient. Notably, 83% of these refunds were issued via direct deposit, while the remaining 17% were sent by cheque .​

 It is very easy to thing now you can splurge, but 2025 is shaping up to be a tricky year. Is that the best move you can make with your refund? And remember, a refund isn't extra money or a windfall, you overpaid during the year and getting that returned back to you! 

As Canadians begin receiving their 2024 tax refunds, it’s natural to ask: “What’s the best use of this money right now?” With the cost of living still high, interest rates impacting everything from mortgages to business loans, and financial uncertainty lingering across industries, this year’s refund isn’t just extra cash — it’s a strategic opportunity.

 Whether you’re a business owner, career professional, or building financial stability for your family, here are smart and timely ways to put your tax refund to work.

1. Attack High-Interest Debt
Start by eliminating debt that’s costing you the most — think credit cards or payday loans. Even a $500–$1,000 payment can cut down hundreds in future interest and relieve monthly cash flow pressure. Less interest = more financial freedom.

2. Top Up Your Emergency Fund
The rule of thumb? Have at least 3–6 months of essential expenses saved. But with everything costing more — groceries, gas, rent — it’s wise to add a little extra padding. An emergency fund can keep you afloat during job loss, business slowdowns, or sudden expenses.

3. Leverage Tax-Advantaged Accounts
Make your money work for you — and your future self.

RRSP: Great for long-term retirement planning. Your contributions are tax-deductible now, and they grow tax-deferred.

TFSA: Flexible savings or investment space. No tax on withdrawals.

FHSA: New and perfect for first-time homebuyers. Tax-deductible in, tax-free out for your first home.

4. Invest in Your Career -> One of my FAVES
Take a course, earn a certificate, or finally join that professional development program. A tax refund can become a stepping stone to higher earnings or a career pivot — especially in today’s evolving job market.

5. Support Your Kids’ Future
RESPs are a great way to grow savings for your child’s education — and you’ll also receive a government grant of up to $500 per year (20% of what you contribute). It's an investment in future-ready knowledge.

6. Give Back
If you’re in a position to, consider making a charitable donation. Not only will you support a cause that matters, but you’ll also get a tax credit on your next return. Strategic generosity is a win-win.

7. Enjoy a Small Treat — Guilt-Free
Balance is key. Allocate a small portion for something that brings you joy — a weekend getaway, a nice dinner, a new tech gadget. Just make sure the majority of your refund is working toward your financial goals.

Final Thoughts

Your 2024 tax refund isn’t a windfall — it’s a financial tool. Used wisely, it can help you reduce stress, grow wealth, and protect your financial future. These aren’t just suggestions — they’re strategies I’ve used with clients across Canada who are building stronger foundations in uncertain times.

If you are wondering what I did with mine? Invested.  When times feel uneasy, protecting my financial position today and for tomorrow for me becomes top priority. I love to make my money, make money!