Most people's biggest expense is their taxes. And worst of all, most people don't even realize that. Taxes are taken off automatically if you are an hourly or salary employee at a company, the money you receive from the government at tax time is just the amount you over paid, but you can still usually get more back if you understand taxes.

RRSP

TFSA

Credits

Deductions

RRSPs (Registered Retirement Savings Accounts) are the best way to defer taxes until a later time when you're in a lower tax bracket.  This is the most common way people save for retirement because of its ability to defer the taxes. All the growth inside the RRSP account is also deferred until it is taken out at a later date as well.
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TFSAs (Tax-Free Savings Accounts) are relatively new for most people as it only began in 2009. Many people use it as a simple savings account, which is usually the most inefficient way to use your TFSA. TFSAs allow you to get all capital gains inside the account tax-free. 

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There are many credits to be aware of in taxes. Usually you want an accountant that will talk with you about your situation and figure out which tax credits you qualify for. Credits will typically get you less back than a deduction of the same amount.


Deductions will work a lot like RRSP contributions, it will lower the amount of income you show that year. However, unlike RRSP contributions, deductions don't defer taxes to a later time, they actually forgo the taxes entirely. These are especially helpful for people in business who have large expenses, as the deductions come off your highest marginal tax bracket.
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