No capital gains tax increase or change to the principal residence exemption.
No tax rate changes for individuals.
Personal tax impacts
Increase to the Home Accessibility Tax Credit from $10,000 to $20,000 for 2022 and subsequent years.
Labour Mobility Deduction for Tradespeople will allow eligible workers to deduct up to $4,000 in eligible expenses per year for temporary lodging to be 150 km closer to a work site.
Medical Expense Tax Credit for surrogacy and other expenses incurred in 2022 and subsequent years will allow claims for people trying to have children, including surrogate mothers and sperm/ovary donors.
Impacting high-income earners
Change to Alternative Minimum Tax (AMT) coming to ensure high-income individuals pay at least 15% of their income in taxes. Details to be released.
Flow-Through Shares — the tax credit will increase for investment in "critical minerals" (copper, nickel, lithium, rare earths) but will be phased out for the oil, gas and coal industries.
"Substantive CCPC" rule will require non-Canadian-controlled private corporations controlled directly or indirectly by Canadian residents to be subject to the same investment income tax regime as regular CCPCs.
Intergenerational share transfers will be reviewed, and the government is seeking commentary for new rules.
Corporations
Small Business Tax Rate (11%) will be expanded to allow corporations with taxable capital greater than $15 million to qualify until they reach $50 million.
A review is being launched to evaluate the SR&ED program.
Support for creating "employee ownership trusts" to help transfer ownership from private owners to employees.
Charities
Increase to charities' disbursement quotas from 3.5% to 5%.
Charities will get revised and more defined rules on how to manage partnerships with "non-qualified" donees.
Housing
Review of the use of housing as an "asset class" for investment, focused on large entities.
GST/HST to be charged on the sale of residential assignments (contracts to buy property before completion).
Creation of a Tax-Free First Home Savings Account — lifetime contributions up to $40,000 (contributions deductible, earnings and withdrawals tax-free). Unused room cannot be carried forward, so plan to do $8,000 a year for 5 years. Launching in 2023; the RRSP Home Buyers' Plan will be maintained.
Home Buyers' Tax Credit will increase from $750 to $1,500 in tax savings on purchase of a first home.
Multi-generational Home Renovation Tax Credit (from 2023) providing a credit of the lesser of 15% of eligible expenses and $50,000.
Residential Property Flipping Rules to subject residential property sold within 12 months of acquisition to full taxation, with life-change exemptions.
Proposal to prohibit foreign commercial enterprises and non-citizens/non-PRs from acquiring non-recreational residential property in Canada for two years.
Other
Additional taxes on banks and life insurers — may impact product costs.
Investment tax credits announced for carbon capture to help reduce CO₂ emissions.
Development of a publicly accessible corporate beneficial ownership registry by the end of 2023.
Expansion of health coverage to provide reduced-cost dental care to children of families earning less than $90,000.
