Built for Canadian homeowners and investors · 2026 tax rates

Free Canadian Tax Calculators: Smith Manoeuver & Tax-Loss Harvesting

Estimate what turning mortgage interest into a tax deduction is really worth, and what your investment losses save at your province's 2026 rates. Every number shows its assumptions and its CRA sources.

Smith Manoeuver Calculator Tax-Loss Harvesting Estimator

CRA 2026 federal & provincial rates
Costs and risks shown, not hidden
No sign-up to use the tools

Example: $650,000 mortgage, 43.41% bracket, 25-year amortization (calculator defaults)

Year 1 tax refund

$226

It grows as more of the debt moves to the HELOC

Refunds over 25 years

$226,935

Before the interest you pay to earn them

HELOC interest you pay

$522,772

The strategy only wins if investments earn more

Free tools and guides

Calculators, Rates and Guides for Canadian Tax Planning

Built around the Canadian Income Tax Act and the CRA's published 2026 rates. Each tool states its assumptions so you can judge the result and take it to your accountant.

TOOL 01

Smith Manoeuver Calculator

See what converting mortgage debt to deductible debt is really worth

Model monthly re-advances to a HELOC, the interest you pay, the annual refund at your marginal rate, and net worth against a household that spends the same cash without the strategy. Borrowing to invest can lose money, and the calculator shows when.

Status: Free · live

Open the calculator

TOOL 02

Tax-Loss Harvesting Estimator

Offset realized gains with 2026 federal and provincial rates

Enter your gains, losses, province and taxable income. The estimate uses the real 2026 bracket tables, including the Ontario surtax and the Quebec abatement, and shows any net loss left to carry back three years or forward.

Status: Free · live

Estimate your tax saved

TOOL 03

Superficial Loss Guide and ETF Swap Ideas

Avoid the 30-day rule that denies your loss

Under ITA section 54, buying identical property within 30 days before or after the sale denies the loss. Read the guide, then see example ETF pairs that track different indexes. The CRA has not ruled on specific pairs, so confirm with your accountant.

Status: Free · live

Read the guide

TOOL 04

2026 Tax Rates by Province

Combined federal and provincial marginal and capital gains rates

Marginal tax rates at every income level for all ten provinces, with the capital gains rate (half the marginal rate) and a worked example, built from the CRA's 2026 tables.

Status: Free · live

Find your province

TOOL 05

Asset Location and RRSP Planning

Planned tools

Where to hold US dividend payers, Canadian dividend payers and growth assets across RRSP, TFSA and non-registered accounts, and how much to contribute without dropping into a lower bracket. Join the waitlist to hear when they open.

Status: Planned

Join the waitlist

Interactive ROI Preview

See How Much the CRA Currently Owes You

Drag the sliders below to estimate your annual Smith Manoeuver tax refund and 25-year wealth creation.

Estimated Tax Refund After 10 Years

$5,615 /year (year 1: $224)

Total Refunds Over 25 Years

$224,787 CAD

Refunds only. The full calculator also charges the HELOC interest you pay and compares net worth.

Open Full Calculator & Amortization Chart

CRA tracing basics

The most common Smith Manoeuver mistake: mixing personal and investment borrowing

Under CRA Income Tax Folio S3-F6-C1 and Bulletin IT-533, interest is deductible only on borrowing you can trace to an income-producing investment. Spending from the same HELOC on personal items makes tracing harder and can put part or all of the deduction at risk.

Read the Smith Manoeuver guide

Common mistakes

Moving borrowed money through a personal chequing account, which muddies the paper trail.
Using the same HELOC for renovations or a car, which mixes personal use into the interest.
Not keeping statements that show each borrowing and where it went.
Buying back the same ETF within 30 days of a loss sale, which triggers the superficial loss rule.

Habits that support the deduction

Keep investment borrowing in its own HELOC sub-account.
Send borrowed money straight to the non-registered brokerage account.
Invest in assets that can reasonably be expected to produce income.
Claim the interest as a carrying charge on line 22100 and keep records for six years.

Referenced: CRA Folio S3-F6-C1, Bulletin IT-533, ITA paragraph 20(1)(c) and section 54. Educational only; ask a CPA about your situation.

Frequently Asked Questions

Everything you need to know about Canadian tax optimization, CRA compliance, and TaxOptima.

Is the Smith Manoeuver legal in Canada?

The strategy relies on paragraph 20(1)(c) of the Income Tax Act, which allows interest on money borrowed to earn income from property. CRA Folio S3-F6-C1 and the Supreme Court's decision in Singleton v. Canada (2001 SCC 61) support deductibility when borrowed funds can be traced to an income-producing investment. The CRA can still deny the deduction if the tracing is poor or the borrowing is mixed with personal spending, so keep clean records and talk to a CPA.

Can the Smith Manoeuver lose money?

Yes. You are borrowing to invest. The calculator charges you the HELOC interest and compares you with a household that spends the same cash without borrowing. With the default inputs the strategy only pulls ahead when long-run returns clearly exceed the HELOC rate; at a 3% return it ends behind. Returns are not guaranteed, and market drops with a HELOC outstanding can be painful.

Which banks offer re-advanceable mortgages?

Products that can work for the strategy include Scotiabank STEP, TD Home Equity FlexLine, RBC Homeline Plan, BMO Homeowner ReadiLine, CIBC Home Power Plan, Manulife One and National Bank All-In-One. Availability, rates and terms change, so confirm with the lender. TaxOptima is not affiliated with any bank.

How does the superficial loss rule work?

Under ITA section 54, if you sell at a loss and you or an affiliated person (including your spouse, a corporation you control, or your TFSA or RRSP) buys identical property within 30 days before or after the sale and still holds it at the end of that period, the loss is denied. People often swap into an ETF that tracks a different index. The CRA has not ruled on specific ETF pairs, so treat any swap list as a starting point for a conversation with your accountant.

How accurate are the calculators?

They are estimates. The tax-loss harvesting estimator uses the CRA's 2026 federal and provincial brackets (including the Ontario surtax and the Quebec abatement) and a 50% capital gains inclusion rate, and ignores credits, the alternative minimum tax and income-tested benefits. The Smith Manoeuver projection assumes a constant return and a constant tax rate. Neither is tax advice.

What is the TaxOptima waitlist?

We are planning tools to track HELOC borrowings for Line 22100 interest and to monitor 30-day windows for loss harvesting. Joining the waitlist is free. You get one email when early access opens and a note each year when Canadian tax rates change. There is no payment and no obligation.

What we're building next

TaxOptima Pro: join the waitlist

The calculators and guides on this site are free and stay free. We're planning paid tools for people who run these strategies year after year. Tell us you're interested and we'll email you once when early access opens.

Monthly HELOC borrowing and interest tracing ledger (planned)
Line 22100 carrying-charge summary for your accountant (planned)
30-day superficial loss window checker (planned)
Asset location and RRSP contribution planners (planned)
Yearly update of every tax rate on this site (planned)

Free. No payment details. Unsubscribe anytime.