The bottom line
The 2026 federal budget, tabled on November 5, leaves tax rates alone. There is no change to personal or corporate rates, and no cut to the small business rate.
Most of the changes start in 2027 or 2028, but a few apply now. Below is a quick guide to what changes when, with links to our more detailed posts. Everything here is proposed, not yet law, and the details could change.
What changes when
Now (2026)
- Medical expenses: fewer prescription requirements and a $1,000 flat amount for gluten-free food, on your 2026 return.
- Massage therapy: services from a qualifying massage therapist are no longer subject to GST/HST, from November 6, 2026.
- Equipment: most equipment and other business assets bought on or after September 15, 2026 can be written off in full in the year they are put into use.
- Family trusts: no tax-deferred distributions to a company or partnership with any non-resident owner, from November 5, 2026.
- Estate freezes: dividends on private company preferred shares no longer attract a special corporate tax.
- Canada Growth Incentive: a new exemption of up to $15 million on gains from qualifying start-up shares issued from November 5, 2026.
Once the legislation passes
- Objections: one year to dispute an assessment, with no extensions, for assessments sent three months or more after Royal Assent.
- Credit reports: CRA could report unpaid tax debts over $50,000 to credit bureaus, starting on Royal Assent.
2027
- One personal tax deadline: May 15 for everyone, starting with 2027 returns.
- T1135: the filing threshold for foreign property rises from $100,000 to $200,000.
- Simpler claims: optional flat amounts for moving, adoption and other expenses, and a refundable caregiver credit.
2028
- Instalments: only required if you owe more than $7,500, with a single annual payment option for the self-employed.
- Penalties: most fixed-dollar penalties roughly double or triple, with higher amounts for larger companies.
- Individual pension plans: new investment and surplus rules.
Our Budget 2026 Insights series
What to do now
- Family trust with a corporate beneficiary? Check with us before any distribution.
- Big equipment purchases coming? Let's review the timing.
- Notice of assessment differs from what was filed? Let us know right away.
- Starting a new venture? Talk to us before you incorporate.
Book a short call
Michael Sadovnick, CPA
This post is general information based on the 2026 federal budget proposals, which may change before becoming law. It is not tax advice for your situation. Please contact us before acting.
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