Endcaps & Insights Canada | Field Agent Blog

Canadian Tax Season: What Are Shoppers Doing with Their Refunds?

Written by Jeff Doucette | May 5, 2026 3:28:05 PM

Tax season is one of the biggest financial moments of the year for Canadian households, and it comes with real implications for how, where, and when consumers spend.

We surveyed 1,296 Canadians to understand how they’re approaching their 2025 personal income taxes and, more importantly, what they plan to do with any refund they receive. The results reveal a mix of cautious financial behaviour, debt management, and selective spending... signals that brands and retailers shouldn’t ignore.

Here’s a snapshot of what we found:

Most Canadians Have Already Filed

The majority of Canadians are on top of their taxes this year, with 86% reporting they’ve already filed. Only 14% said they haven’t yet submitted their return.

This early completion suggests that many households are eager to access refunds quickly, whether to relieve financial pressure or to put that money to work.

 

Refund Expectations Are Strong But Stable

Nearly three-quarters of Canadians (72%) expect to receive a tax refund this year.

However, when compared to last year:

  • 44% expect their refund to be about the same
  • 32% expect more
  • 24% expect less

This points to a relatively steady financial outlook. While some Canadians are seeing improvement, most aren’t expecting a major windfall, which influences how cautiously they plan to spend.

 

Saving Comes First… But It’s Not the Whole Story

When it comes to refund allocation, Canadians are balancing responsibility with practicality.

The top response? 46% say they’ll invest or save their refund

This reinforces the continued focus on financial stability and future planning, something we’ve consistently seen across multiple surveys.

But that’s only part of the picture.

 

Debt Repayment Is a Major Priority

A significant portion of Canadians plan to use their refund to reduce debt:

  • 25% will pay down credit card debt
  • 15% will pay down other debt
  • 9% will pay down their mortgage
  • 4% will pay down auto debt

That’s over half of respondents directing at least some of their refund toward debt reduction.

For brands, this signals a consumer mindset focused on financial recovery and discipline, especially in the face of ongoing cost-of-living pressures.

 

Everyday Spending Still Matters

While saving and debt repayment dominate, 32% of Canadians say their refund will go toward daily expenses like groceries, gas, and rent.

This is a critical insight.

Even when consumers receive a lump sum, many are using it to support their regular spending, not splurging. This reinforces just how stretched everyday budgets still are.

 

Selective Splurging: Travel, Treats, and Big Purchases

That said, there are still pockets of discretionary spending:

  • 16% plan to spend on travel
  • 10% will treat themselves or their family
  • 7% are planning a big-ticket purchase
  • 8% will invest in home renovations

These moments represent key opportunities for brands to capture incremental spend, especially in categories tied to lifestyle upgrades, experiences, and seasonal moments.

 

What This Means for Brands & Retailers

This year’s tax season paints a clear picture of the Canadian consumer:

  • Financially cautious
  • Focused on stability
  • Still open to spending, but selectively

For brands, this means:

  • Value messaging matters more than ever
  • Promotions tied to “smart spending” will resonate
  • Timing campaigns around refund season can unlock incremental sales
  • Everyday categories should expect continued demand support

 

 

Want to See How This Plays Out In-Store?

Understanding intent is one thing, seeing how it translates to real behaviour at shelf is where the real value lies.

Field Agent Canada can help you:

  • Track how tax season impacts in-store purchasing behaviour
  • Measure price sensitivity and promotional effectiveness
  • Capture real-time insights from shoppers across the country

Get in touch to see how your category is performing this tax season, and where the opportunities are.