Budget 2026: Six Things to Remember First

ReminderCheck where the legislation standsWatch this part1:39

• A budget sets out proposals. They take effect only after Parliament passes the legislation and it receives Royal Assent, and the details and effective dates can change.
• The 2024 budget proposed raising the capital gains inclusion rate from 1/2 to 2/3; it was later cancelled and never took effect.
• Online commentary isn't always accurate. Rely on the Department of Finance's documents and what the CRA publishes.

Read more：Department of Finance Canada: Budget 2026 Tax Measures

Budget proposalFrom the 2027 tax yearWatch this part0:54

• Most individuals: both the filing and the payment deadline would move from April 30 to May 15.
• Self-employed individuals (and their spouses): filing would move up from June 15 to May 15, and payment would move from April 30 to May 15.
• The new date would first apply in spring 2028 (for 2027 returns); 2026 returns are unchanged.

Read more："Your First Year in Canada: How to File Your Tax Return"·"How to File Your Tax Return for the Year You Leave"

Budget proposalTaxation years ending after 2026Watch this part1:27

• Filing threshold: you report if the total cost of your specified foreign property is more than $100,000; this would rise to more than $200,000 — for individuals, from 2027.
• The limit for simplified reporting rises from under $250,000 to under $500,000 (a CRA change announced in the budget, on the same timing).
• 2026 reporting still uses $100,000. Filing the T1135 on time also makes the source of your funds easier to explain if the CRA asks later.

Read more："T1135 Foreign Property Reporting: What to Report and How the $100,000 Test Works"·"Your First Year as a Tax Resident: Do You Need to File the T1135?"

ConsultationComments due January 8, 2027Watch this part0:52

• The government intends to merge the core features of the RRSP and the RRIF into an "RRSP for life", so you would no longer have to convert to a RRIF at 71.
• For now this is only an intention, with no draft legislation and no effective date.
• The current rules still apply: by the end of the year you turn 71, your RRSP must be converted to a RRIF or used to buy an annuity.

Read more："Planning Retirement Income: RRIF, CPP and the OAS Clawback"·"RRSP: When Does It Pay to Contribute, and When to Withdraw?"

Budget proposalTaxation years beginning on or after January 1, 2028Watch this part1:25

• The instalment threshold for individuals and corporations would rise from $3,000 to $7,500 ($1,800 → $4,500 for Quebec individuals).
• From the 2028 tax year, individuals whose income is mainly from a business (including professional or commission income) could pay two-thirds of the year's net tax owing in a single payment by December 31, instead of quarterly.
• The video also covers flat amounts: from the 2027 tax year, several deductions and credits, such as moving expenses, could be claimed as a flat amount without keeping receipts (for example, $1,000 for an eligible relocation).

Read more："Living in Canada, Working Remotely for a Chinese or Hong Kong Company: How Is It Taxed?"·"Your Company Is Incorporated: What Comes Next?"

TimelineSubject to the final legislationWatch this part1:31

• 2026 tax year (filed in spring 2027): no change.
• 2027 tax year (filed in spring 2028): proposed May 15 filing and payment deadline; proposed new T1135 threshold.
• From the 2028 tax year: proposed new instalment threshold.
• January 8, 2027: comments on the RRSP for life are due.