Nearly half of Canadians are planning to put their tax refund towards savings or paying down debt, a recent survey by Bank of Nova Scotia has revealed.

Roughly one-quarter of Canadians plan to save their refund by either depositing it or reinvesting it, while 21% say they will use it to pay off debt, according to the Harris/Decima poll conducted in early February.


One-fifth of the 1,020 Canadians surveyed do not expect to get an income tax refund at all.

Canadians living in British Columbia are the most likely to deposit or reinvest their tax refund, at 32%, followed by 28% in Ontario. Albertans are most likely to pay off their debt, at 27%.

“In today’s environment, it’s great to see that so many Canadians are thinking about how they can make the most of their tax refund,” said Adam Salahudeen, senior manager of tax advisory services for Scotia Private Client Group.

Only 8% of respondents said they would go shopping, while 5% said they would use their refund to go on a vacation and 4% said they would do some home renovations.

Salahudeen encourages Canadians to take advantage of the Temporary Home Renovation Tax Credit, which could provide tax savings up to $1,350.

Other tax-saving strategies Salahudeen recommends include tax loss selling, maximizing RRSP contributions by setting up a regular investment plan, opening a Tax-Free Savings Account, splitting pension income, claiming all tax credits and taking all eligible deductions.

IE