Why Mid-Year Is the Best Time to Review Your Tax Strategy

Tax planning isn’t just something you think about in April—it’s a year-round process. In fact, the middle of the year is one of the most strategic times to review your tax approach and make smart adjustments before it’s too late.

At STP Accounting, we often tell clients that waiting until tax season to "get organized" means you’re already behind. Here’s why mid-year is the perfect moment to revisit your tax strategy—and how it can benefit you for the rest of 2025.

1. You Still Have Time to Make an Impact

When you review your tax strategy in June or July, you still have six months left to take meaningful action. Whether it's adjusting deductions, increasing RRSP contributions, or realigning business expenses, you're not locked into your year-end numbers yet.

By planning now, you give yourself more flexibility to implement changes gradually and reduce stress later.

2. Your Financial Picture Is Clearer

By mid-year, you’ve accumulated enough data to assess how your income, expenses, and investments are tracking. This allows for a realistic projection of where you’ll stand by December.

Key questions to consider:

• Are you earning more or less than expected?

• Are your business expenses aligned with your budget?

• Have you missed any deductions so far?

A mid-year review helps you identify both problems and opportunities while you still have time to course-correct.

3. You Can Optimize Your Withholdings or Installments

If you're self-employed or making quarterly tax payments, mid-year is the right time to check if your current payment schedule aligns with your projected tax liability.

Underpaying? You risk interest and penalties from the CRA. Overpaying? You’re tying up cash unnecessarily.

Reviewing now ensures your installment payments are accurate and optimized for your cash flow.

4. It's a Smart Time for RRSP & TFSA Planning

You don’t have to wait until February to contribute to your RRSP. If your income is trending higher this year, consider spreading your contributions across the remaining months.

Similarly, reviewing your TFSA contribution room and investment strategy mid-year gives you time to take full advantage of these tax-free growth opportunities.

5. Businesses Can Strategize for Equipment, Hiring, and Deductions

For business owners, this is the time to assess:

• Should you invest in new equipment this year?

• Is now the right time to hire?

• Are there deductible expenses you’ve been delaying?

With a solid tax plan in place mid-year, you can time purchases and investments to maximize deductions for 2025.

6. CRA Compliance Is Easier When You’re Proactive

Waiting until year-end often leads to rushed bookkeeping and missing documents. A mid-year tax checkup lets you identify gaps in recordkeeping, address red flags early, and ensure you're aligned with CRA expectations before deadlines roll in.

Mid-year tax planning isn’t extra work—it’s smart work. It gives you control, clarity, and the ability to reduce your tax liability with intention rather than urgency.

At STP Accounting, we help Canadian individuals and business owners take advantage of strategic tax opportunities year-round. If you’re ready to review your 2025 tax strategy, let’s schedule your mid-year check-in.