Amid cost of living woes, 54% of British Columbians plan to skip the splurge and save their tax return
With tax season recently wrapping up, many B.C. residents are taking the opportunity to use their returns to top up their savings.
According to a recent survey from TD, 54 per cent of B.C. residents expect a refund plan to save that money — up from 33 per cent in 2025. Twenty-seven per cent plan to invest it, a 15-point increase from the previous year. And 43 per cent said they will use it differently than normally because of today’s economic conditions.
“What we’re seeing in B.C. is a shift toward cautious and intentional financial behaviour, driven by ongoing affordability pressures and economic uncertainty. With everyday costs still high, many people are prioritizing stability over spending,” said Manish Jain, TD’s vice-president of personal savings and investing, in an email to Daily Hive.
Thirty per cent said they plan to use their tax refunds to pay down debt, 18 per cent to cover daily expenses, and 10 per cent to take a vacation or travel.
“Tax refunds are increasingly being treated as a financial buffer rather than bonus money. Many B.C. residents are using that lump sum to build a safety net against rising costs or unexpected expenses, while discretionary spending falls well behind,” said Jain.
Currently, B.C.’s economy is projected to grow by just 1.2 per cent this year, down from the 1.7 per cent in 2025. According to Deloitte, it’s due to the impacts of U.S. tariffs on B.C.’s forestry sector, a slowing population growth, and a soft housing market. Meanwhile, the war in Iran has caused oil prices to spike, pushing up the costs of everyday goods like gas and groceries.
Cost-of-living woes have been on people’s minds all year. Another TD survey from January found that over two-thirds of British Columbians were looking to cut back on spending this year, by reducing eating out or ordering food, shopping, and entertainment.
More recently, MNP Ltd., Canada’s largest insolvency firm, published its quarterly consumer debt index, looking at Canadians’ ability to pay their bills, cover unexpected expenses, and absorb interest-rate fluctuations.
While there was some good news in the report (the number of British Columbians with money left over at the month-end is at an all-time high), there were also indications that people are struggling.
It found that over half “feel they are working harder financially but not getting ahead.” Nearly two-thirds said they are deciding to delay big financial decisions due to conditions feeling unpredictable, and 70 per cent of B.C. residents said rising prices for things like food and gas are straining their finances.
What about the rest of the country?
At a national level, the TD survey found that 47 per cent plan to save their tax return, up from 29 per cent in 2025, with 36 per cent saying they’ll use it to pay down debt and 25 per cent planning to invest it.
“Many Canadians who receive a refund are choosing to put that money to work in practical ways and skipping the splurge,” reads TD’s release.
The TD survey was conducted using the Leger Opinion panel, running from March 26 to 30 of this year, with a sample of 1,521 Canadian adults.