Federal Budget 2026

On November 5, 2026, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, presented Budget 2026 – Masters of Our Destiny, to the House of Commons.

No changes were proposed to personal or corporate tax rates. Some highlights include the following:

A. Personal Measures

• A May 15 personal tax filing and payment deadline for all individuals, including the self-employed, starting with 2027 tax year.
• A capital gains exemption of up to $15 million per individual, per business, on qualifying share sales under the new Canada Growth Incentive, subject to several conditions and significant sector exclusions.
• Various measures intended to simplify personal tax filing, including optional flat amounts for certain deductions and credits, reduced documentation requirements for certain medical expenses and higher T1135 reporting thresholds, starting largely with the 2027 tax year.
• Consultation on an “RRSP for life” that would combine core features in savings plans, eliminating the conversion from an RRSP to a RRIF at age 71 while retaining minimum withdrawal requirements

B. Business Measures

• An increase to various tax penalties, with higher amounts for medium and large corporations and partnerships and for repeated failures.

C. International Measures

• A reduction of withholding and remittance rates on sales of taxable Canadian property by non-resident corporations

D. Sales and Excise Measures

• An exemption on qualifying massage therapy services from GST/HST

E. Other Measures

• An extension of the ban on foreign purchases of existing residential properties to January 1, 2029, while exempting new residential properties.