Cost of Living Canada: Twice as Many Gen Z Plan to Save Tax Refund, TD Survey Finds

Cost of Living Canada: Twice as Many Gen Z Plan to Save Tax Refund, TD Survey Finds

Gen Z Canadians are shifting how they use tax refunds amid ongoing affordability pressures, with a notable rise in both saving and investing, according to a TD Bank survey published May 4, 2026.

Survey findings

Key takeaways from the TD Bank survey

The TD Bank poll indicates a marked change in Gen Z financial behaviour this tax season. Compared with the previous year, twice as many members of this cohort intend to set their tax refunds aside rather than spend them immediately. The survey also found that 33 per cent of Gen Z plan to invest their refund this year, up from 15 per cent last year.

• Twice as many Gen Z Canadians plan to save their tax refund this year (compared with last year).
• 33% of Gen Z intend to invest their tax refund in 2026, versus 15% in 2025.
• Findings reported by TD Bank on May 4, 2026, reflect shifting priorities among younger Canadians.

What this means for cost of living Canada

Implications for households and policy

The move toward saving and investing tax refunds among Gen Z has implications for broader discussions about cost of living Canada. If younger Canadians increasingly divert one-time inflows into savings or investments, consumer spending patterns could moderate, potentially affecting sectors that rely on discretionary purchases. For households, prioritizing savings may signal a response to affordability concerns and a desire to build financial buffers amid uncertain living costs.

For readers tracking cost of living Canada trends, these survey results suggest a generational adjustment in financial priorities that could influence demand, housing decisions, and retirement planning over time. Policymakers and employers monitoring household resilience may consider how targeted supports, financial literacy programs, and workplace benefits could reinforce saving and investment behaviour among younger workers.

For further reading on affordability and household finances in Canada, see our coverage at cost of living Canada and the TD Bank website at td.com.

Source: Global News — Twice as many Gen Z Canadians plan to save tax refund this year: survey (May 4, 2026)