How Canada's 2026 federal budget could affect your taxes

Proposed changes in the latest federal government 2026 budget could make tax season just a bit easier for Canadians.

If approved, several proposed changes could affect how Canadians file their taxes, claim expenses, and access tax credits. One of the biggest changes would give most Canadians more time to file their returns. There’s also proposed tax relief for Canadian artists, while Canadians with foreign investments could face fewer reporting requirements.

Here’s a look at the proposed changes that could affect you.

Canadians could have more time to file taxes

With the government proposing to push the deadline from April 30 to May 15, Canadians could soon have extra time to file their taxes.

These changes would apply to employees, self-employed Canadians and their spouses or common-law partners, starting in the 2027 tax year. Currently, most employees must file and pay their taxes by April 30. Self-employed Canadians have until June 15 to file, but must pay any taxes owed by April 30. Under the proposed changes, both deadlines would move to May 15 for everyone.

Fewer Canadians may have to make quarterly payments

Canadians who owe income tax may no longer have to make quarterly payments.

Currently, Canadians are required to make quarterly tax instalments if they expect to owe over $3,000 in taxes ($1,800 in Quebec). The government wants to raise that limit to $7,500 and $4,500 starting in 2028. This means that fewer Canadians may have to make payments throughout the year.

More time to dispute tax assessment

Don’t agree with a tax assessment from the CRA? You could have more time to challenge it.

According to proposed changes, most taxpayers would have one year from the date the CRA sends their notice of assessment to file an objection, up from the current 90 days.

Tax relief for Canadian artists

The new Canada Creative Credit is a new tax relief that could provide support to artists “as they foster creativity, artistic production, and cultural entrepreneurship in Canada.”

Artists could soon qualify for a new non-refundable tax credit that, when combined with the Basic Personal Amount, could cover up to $45,000 in annual eligible income earned from their original creative work.

Employed artists could deduct more work-related expenses

In keeping with government efforts to support Canadian artists, the government wants to let employed artists deduct more of their expenses related to their work.

Currently, eligible artists can deduct up to $1,000 or 20 per cent of their eligible employment income, whichever is lower. The changes mean they could deduct eligible work expenses up to the full amount of their employment income from eligible artistic activities, removing the existing $1,000 limit.

Reporting taxes could be easier for Canadians with foreign investments

Canadians could face fewer tax reporting requirements for foreign investments, as the government wants to increase the reporting threshold.

Currently, Canadians with over $100,000 in certain foreign investments or income-earning property must file a Foreign Income Verification Statement. Now, the government wants to raise that limit to $200,000. They also want to increase the limit for simplified reporting from $250,000 to $500,000.

Combining RRSPs and RRIFs

Canadians are required to convert their Registered Retirement Savings Plans (RRSPs) into Registered Retirement Income Funds (RRIFs) when they turn 71. Now, the government wants to simplify the process by combining both into one account called an “RRSP for life.”

If approved, the changes would mean that Canadians can keep their RRSPs instead of switching accounts. However, they would still have to make minimum withdrawals after 71.

Making it easier to claim 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 to offset costs.

Currently, claimants must keep track of renovation expenses and provide supporting documentation, such as invoices and receipts. New changes would mean that eligible homeowners and family members would be able to claim a flat $1,000 in renovation expenses without having to calculate actual costs. Some proof of expenses would still be required, and this flat-rate option can only be claimed once in a person’s lifetime.

Less paperwork to claim medical expenses

It could soon be much easier for Canadians to claim certain medical expenses on their taxes.

The government wants to simplify the process by removing the prescription requirement for some medical expenses. For expenses that could be used for non-medical reasons, Canadians would need a medical practitioner to certify their condition instead of getting a prescription.

The government also proposed changes that could save Canadians more money.

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