Calgary Wealth Management Tax Planning Strategies for High-Income Earners

Calgary Wealth Management Tax Planning Strategies for High-Income Earners

If you’re a high-income professional, executive, or business owner in Calgary, working with a financial advisor in Calgary can turn tax planning from a year-end chore into a strategic advantage. With Alberta’s relatively low provincial income tax compared to other provinces, there are great opportunities to optimize your after-tax wealth. But without a coordinated wealth management strategy in Calgary, you could be leaving thousands on the table each year.

This guide highlights key tax planning strategies tailored to Calgary’s high earners—so you can keep more of what you earn and invest it more efficiently.  Working with a Calgary financial advisor who is also an accountant can help ensure your tax strategy aligns with Alberta’s tax rules and your long-term goals.

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1. Maximize RRSP Contributions—But Don’t Stop There

RRSPs remain one of the most powerful tools for tax deferral in Canada, especially for those earning $150,000+. Contributions reduce your taxable income and allow investments to grow tax-deferred until withdrawal.

But high-income earners often hit their RRSP limit quickly.

Smart Tip:

• Consider spousal RRSPs for income-splitting
• Pair RRSP contributions with TFSA investing to maintain tax-free compounding flexibility

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2. Use a Professional Corporation or Holding Company

If you’re incorporated (e.g., a doctor, consultant, or business owner), a professional corporation or holding company structure can significantly enhance your tax planning. You can:

• Retain earnings inside the corporation and invest them at lower corporate tax rates
• Split income with family members (where eligible)
• Defer personal taxes by avoiding premature salary or dividend payments

Holding companies can also help you:

• Isolate investment assets from business risk
• Facilitate tax-efficient succession planning
• Potentially qualify for the Lifetime Capital Gains Exemption (LCGE) on the sale of your business

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3. Leverage Income Splitting Where Possible

Income splitting allows you to shift income to a lower-income spouse or family member to reduce overall household tax. Common techniques include:

• Paying reasonable salaries to a spouse who contributes to the business
• Spousal RRSPs
• Prescribed rate loans to family members (used for investment income splitting)

⚠️ CRA’s Tax on Split Income (TOSI) rules are complex, so work with a tax advisor to structure this correctly.

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4. Tax-Efficient Investing: Asset Location Matters

How you invest is just as important as what you invest in. To minimize tax drag in your investment portfolio:

• Keep interest-earning investments inside RRSPs or TFSAs
• Allocate Canadian dividend-paying stocks to non-registered accounts
• Place growth equities in TFSAs for long-term compounding with no tax on gains

Tax-loss harvesting and strategically using capital gains exemptions can also improve net returns.

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5. Charitable Giving with Tax Benefits

Donating to causes you care about doesn’t just feel good—it can be highly tax-efficient.

Instead of cash, consider donating publicly traded securities with embedded capital gains. You’ll:

• Get a charitable tax receipt for the full market value
• Avoid paying capital gains tax on the appreciated value

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6. Plan Ahead for Retirement Income

Tax planning shouldn’t stop at wealth accumulation. High-income earners need an investment withdrawal strategy for retirement that minimizes tax and maximizes eligibility for income-tested benefits like OAS.

Strategies include:

• Delaying CPP and OAS to increase benefits
• Withdrawing from RRSPs before age 71 to flatten your tax curve
• Using corporate asset stripping and capital dividends where appropriate

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Want a Custom Wealth Management Tax Strategy Built Around Your Goals?

At MRG Wealth Management, we specialize in helping high-income professionals and business owners in Calgary create tax-smart wealth management strategies that go beyond the basics. From corporate structures to integrated investment and retirement strategies, we act as your Personal CFO—so you can focus on what matters most.

Book your complimentary tax strategy session today and discover how to keep more of what you earn.

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