How Canada’s 2026 federal budget could affect your taxes

Canada’s 2026 federal budget proposes several tax changes. If approved, they could affect filing and payment deadlines, expense claims and tax credits. The proposals include the following measures.

**More time to file taxes**

Starting with the 2027 tax year, the government proposes moving the filing and payment deadline for most taxpayers from April 30 to May 15. The change would apply to employees, self-employed Canadians and their spouses or common-law partners. Under current rules, most employees must file and pay by April 30. Self-employed people have until June 15 to file, but must pay any tax owing by April 30. The proposal would move both deadlines to May 15.

**Fewer people may have to make quarterly tax payments**

Canadians who expect to owe more than $3,000 in income tax, or $1,800 in Quebec, currently have to make quarterly instalments. The government proposes raising those thresholds to $7,500 and $4,500, respectively, starting in 2028. As a result, fewer people may have to make payments throughout the year.

**More time to dispute a tax assessment**

Most taxpayers currently have 90 days to object to an assessment from the Canada Revenue Agency (CRA). The proposed deadline would be one year from the date the CRA sends the notice of assessment.

**A proposed tax credit for artists**

The government proposes a new Canada Creative Credit to support artists’ creativity, artistic production and cultural entrepreneurship in Canada. Artists could qualify for a non-refundable tax credit that, when combined with the Basic Personal Amount, could cover up to $45,000 in annual eligible income from their original creative work.

**Employed artists could deduct more work expenses**

Eligible artists can currently deduct up to $1,000 or 20 per cent of eligible employment income, whichever is less. The proposal would remove the $1,000 cap, allowing employed artists to deduct eligible expenses related to artistic activities up to the full amount of income earned from those activities.

**Higher reporting thresholds for foreign investments**

Canadians with more than $100,000 in certain foreign investments or income-earning property currently have to file a Foreign Income Verification Statement. The government proposes increasing that threshold to $200,000 and raising the simplified-reporting threshold from $250,000 to $500,000. The changes could reduce reporting requirements for some taxpayers.

**Combining RRSPs and RRIFs**

Canadians currently have to convert their Registered Retirement Savings Plans (RRSPs) into Registered Retirement Income Funds (RRIFs) at age 71. The government proposes combining the two into one account called an “RRSP for life.” If approved, people could keep their RRSPs instead of switching accounts, but would still have to make minimum withdrawals after turning 71.

**A simpler way to claim the Home Accessibility Tax Credit**

Canadians who renovate their homes to make them safer or more accessible for seniors or people with disabilities can claim the Home Accessibility Tax Credit. Claimants currently have to track renovation expenses and provide supporting documents such as invoices and receipts. Under the proposal, eligible homeowners and family members could claim a flat $1,000 in renovation expenses without calculating their actual costs. Some proof of expenses would still be required, and each person could use the flat-rate option only once in their lifetime.

**Less paperwork for some medical expense claims**

The government proposes removing the prescription requirement for some medical expenses. For expenses that can also be used for non-medical reasons, taxpayers would need a medical practitioner to certify their condition instead of obtaining a prescription.

The government has also proposed other measures that could help Canadians save money.