Federal Budget 2026: Tax Measures Guide

The one-time 2027 Canada Groceries and Essentials Benefit Supplement is $4,055 million of the $11,139 million that Table 1's measures cost over five years, about 36 per cent (calculated).
The Productivity Mega Deduction costs $36,055 million over five years in Chapter 1 and has no Table 1 line, yet it costs more than three times every Table 1 measure combined (calculated).
Ending Advance Canada Workers Benefit payments raises $3,050 million, about 94 per cent of the $3,228 million that Table 1's revenue-raising lines bring in, leaving aside penalties already provisioned (calculated).

At a Glance

Table 1 of Budget 2026's Tax Measures: Supplementary Information lists 49 measures and two offsetting lines. It prints a cost for 30 measures and a dash for 19 (calculated count). Indigenous tax arrangements have no Table 1 line. A dash means nil, under $500,000, or a base-protection amount that cannot be estimated. The sign convention is Table 1's own. A positive number is a cost to the government (a revenue decrease). A negative number is a revenue gain. Figures are millions of dollars over 2026-27 to 2030-31 (Tax Measures: Supplementary Information, Table 1).

Measure	Category	Effective	Five-year impact ($M)
2027 Canada Groceries and Essentials Benefit Supplement	Personal	January 2027 payment	4,055
Mineral Exploration and Critical Mineral Exploration Tax Credits	Personal	Agreements to March 31, 2032	956
Canada Caregiver Credit (refundable)	Personal	2027 taxation year	845
Canada Growth Incentive, capital gains exemption	Personal	Shares issued from Nov 5, 2026	565
Canada Growth Incentive, small business rollover	Personal	Dispositions from Jan 1, 2027	150
Instalment payments	Personal	Taxation years from Jan 1, 2028	395
T1 filing and balance-due dates	Personal	2027 taxation year	230
Northern Residents Deductions	Personal	2027 taxation year	99
Intergenerational farm and fishing rollover	Personal	Transfers from Jan 1, 2027	65
Registered Disability Savings Plan	Personal	Temporary rule made permanent	39
Flat amount, moving expenses	Personal	2027 taxation year	4
Flat amount, clergy residence	Personal	2027 taxation year	27
Flat amount, labour mobility	Personal	2027 taxation year	–
Flat amount, home accessibility	Personal	2027 taxation year	4
Flat amount, adoption expenses	Personal	2027 taxation year	–
Form T1135 thresholds	Personal	Years ending after 2026	17
Apprentice vehicle mechanics' tools	Personal	2027 taxation year	12
Medical Expense Tax Credit and Disability Supports Deduction	Personal	2026 and 2027 taxation years	7
Commission employee expenses	Personal	2027 taxation year	4
Lump-sum benefit thresholds	Personal	Benefits paid after June 2027	–
Scholarship, fellowship and bursary income	Personal	2027 taxation year	–
Employed artists' expenses	Personal	2027 taxation year	–
Volunteer firefighter and search and rescue credit	Personal	2027 taxation year	–
Registered Retirement Savings Plan ("RRSP for life")	Personal	Consultation to Jan 8, 2027	–
Private foundations, excess corporate holdings	Personal	Years from Jan 1, 2027	–
Objections to assessments	Personal	Three months after royal assent	–
Tax debt disclosure to credit bureaus	Personal	Royal assent	–
Trust distributions to non-residents	Personal	Distributions from Nov 5, 2026	–
Information sharing, pension administrators	Personal	Royal assent	-30
Registered pension plans and IPPs	Personal	2027 and 2028	-148
Build Canada Workers Benefit	Personal	2027 taxation year	2,060
Less: phasing out advance payments	Personal	2027 cut, 2028 end	-3,050
Clean Electricity and Clean Technology ITCs	Business	Property acquired from Nov 5, 2026	2,420
SR&ED program	Business	Years beginning from Nov 5, 2026	930
Interest deductibility limits (EIFEL)	Business	Years from Oct 1, 2023 (retroactive)	555
Canadian Journalism Labour Tax Credit	Business	Expenses from Nov 5, 2026	501
Taxable preferred shares	Business	Dividends from Nov 5, 2026	91
Helium exploration and development	Business	Expenses from Nov 5, 2026	54
Corporate tax elections	Business	Royal assent	–
Corporate loss transfers	Business	Consultation to Jan 8, 2027	–
Administrative penalties	Business	Mostly periods ending after 2027	-117
Less: amounts provisioned in Budget 2025	Business	Same	117
Common Reporting Standard	International	Consultation to Dec 31, 2026	–
Taxable Canadian property	International	Dispositions from Jan 1, 2027	63
GST/HST health measures	Sales and excise	Supplies after Nov 5, 2026	199
GST/HST input tax credit pre-approval	Sales and excise	Fiscal years after June 30, 2027	–
Product descriptions and cross-references	Sales and excise	Second month after royal assent	–
Cannabis taxation	Sales and excise	Common stamp from Jan 1, 2028	–
Spirits licence security	Sales and excise	Licences from royal assent	–
Fuel excise tax licensing	Sales and excise	Staged, from Nov 6, 2026	20
Ministerial delegations	Other	Various	–
Indigenous tax jurisdiction arrangements	Other	By negotiation	No Table 1 line
Productivity Mega Deduction	Business	Property acquired from Sept 15, 2026	36,055 (Chapter 1)
Fuel excise tax suspension extension	Sales and excise	To Jan 31, 2027, half rates to Mar 31	2,870 (Chapter 3)

The last two rows were announced before Budget Day and are costed in chapter tables. Neither has a Table 1 line.

Section totals (calculated)	2026-27	2027-28	2028-29	2029-30	2030-31	Five years
Personal	4,072	701	285	403	845	6,306
Business	277	529	1,315	1,135	1,295	4,551
International	3	15	15	15	15	63
Sales and excise	20	61	46	46	46	219
All Table 1 measures	4,372	1,306	1,661	1,599	2,201	11,139

Table 1 prints no subtotals, so every row in the second table is a column sum (calculated). Without the one-time supplement, 2026-27 tax measures cost $317 million (calculated). Budget 2025's Table 1 summed to $687 million over its own five years (calculated). This year's package is about 16 times larger (calculated). Add the Mega Deduction and the fuel excise extension, and tax measures cost $50,064 million over five years (calculated).

Most of the cost lands late. The Clean Electricity and Clean Technology credits cost $70 million in 2027-28 and $780 million in 2028-29. Chapter 1 says the two credit changes cost $36.1 billion from 2031-32 to 2041-42, about 15 times their in-horizon cost (calculated). The capital gains exemption costs nothing until 2029-30, likely because shares must be held 36 months (Tax Measures: Supplementary Information, Table 1).

Personal Income Tax Measures

Benefits paid through the tax system

2027 Canada Groceries and Essentials Benefit Supplement. The benefit, formerly the GST Credit, pays up to $445 per adult and $234 per child for July 2026 to June 2027. It phases out at 5 per cent of 2025 family net income above $46,432. The supplement adds one payment of up to $223 per adult, $117 per child and $117 for the single supplement. The supplement phases in at 6 per cent and out at 15 per cent. The Notice of Ways and Means Motion (NWMM) sets the payment month as January 2027 and bases it on 2025 income. It computes the amount as a quarter of tripled annual amounts, less the regular January payment. That is why the rates look high for a half-size top-up. Chapter 3 puts the gain at up to $339 for a single person and $679 for a couple with two children. The cost is $4,055 million, all in 2026-27. The NWMM adds new subsections 122.5(3.006), (3.07) and (4.7) to the Income Tax Act (Tax Measures: Supplementary Information, 2027 Canada Groceries and Essentials Benefit Supplement).

Build Canada Workers Benefit. For 2027 the Canada Workers Benefit phases in above $3,000 of working income and peaks at $1,709 for singles and $2,943 for families. The replacement phases in above $500 and peaks at $1,859 and $3,143. The disability supplement threshold falls from $1,150 to $200. The phase-out now starts lower, at $27,104 for singles and $30,731 for families, against $28,104 and $32,064. The budget says this keeps the income at which the benefit ends unchanged. With the 15-cent reduction rate, a single worker above $28,104 gets the same benefit as before (calculated). The gain goes to lower earners, and workers with $500 to $3,000 of working income qualify for the first time. The enhancement costs $2,060 million from 2027-28. Chapter 3 says 1.9 million workers get more, including 180,000 new recipients (Tax Measures: Supplementary Information, Build Canada Workers Benefit).

Advance Canada Workers Benefit. Recipients now get half of last year's entitlement in three advance payments, and need not repay excess advances. For 2027 the advance falls to 25 per cent of the 2026 entitlement. From 2028 there are no advances, and the full benefit arrives after filing. The saving is $3,050 million. Net of the enhancement, the package raises $990 million for the government over five years (calculated). Chapter 3's cost table prints the savings at $871 million a year from 2028-29, for $3,082 million and a net saving of $1,022 million (calculated). Table 1 prints $860 million a year. The budget does not explain the $32 million gap (calculated). Draft text is in the Income Tax Act NWMM (Tax Measures: Supplementary Information, Advance Canada Workers Benefit).

Canada Caregiver Credit. The credit becomes refundable from 2027. Its 2027 amounts are unchanged at $9,001 for an infirm adult relative (relief up to $1,260) and $2,812 for an infirm spouse or minor child (relief up to $394). The reduction for dependant income above $21,136 stays. Caregivers with no tax to pay gain most. Chapter 3 says 180,000 of 585,000 recipients get nothing now. The cost is $845 million over four years. The NWMM has only a general clause (Tax Measures: Supplementary Information, Canada Caregiver Credit).

Lump-sum thresholds. Small entitlements are paid as one annual lump sum. The trigger rises from $20 to $50 a month for the Canada Child Benefit and from $50 to $70 a quarter for the Groceries and Essentials Benefit. For 2027 only, Advance CWB payments under $70 are paid as a lump sum, up from $33. Changes apply to benefits paid after June 2027, with indexation from July 2028. Table 1 shows no cost (Tax Measures: Supplementary Information, Lump-sum Thresholds for Periodic Payment of Benefits).

Founders, investors and owner-managers

Canada Growth Incentive, capital gains exemption. No such exemption exists now. The new one shelters up to $15 million of gains per individual, per business, on shares issued from Budget Day and before 2037. The holder must be 18 or older at acquisition, not a trust, and resident in Canada in the claim year. The issuer must be a Canadian-controlled private corporation (CCPC) with related-group assets of $100 million or less. Shares must be issued for cash or for employment services and held 36 months. Professional practices, consulting, farming, fishing, forestry, mining, finance, insurance, utilities, real estate, hospitality, arts, recreation and franchises are excluded. Exempt gains face a 30 per cent inclusion rate for the Alternative Minimum Tax. A claim reduces the Lifetime Capital Gains Exemption on shares of the same company. It does not reduce the Employee Ownership Trust exemption. Integrity rules on multiple corporations will come later. The cost is $565 million, starting in 2029-30. The NWMM has only a general clause (Tax Measures: Supplementary Information, Canada Growth Incentive – Capital Gains Exemption).

Chart 1.3 shows the effect. A founder with a $15 million gain in Ontario keeps 96.0 per cent at exit, against 70.7 per cent today and 86.8 per cent in California (Budget 2026, Chapter 1, s. 1.1). This suggests the exemption is aimed at the gap with California, where the same founder keeps less than in Ontario after Budget 2026.

Canada Growth Incentive, small business rollover. Today an individual can defer gains on eligible small business shares held 185 days if proceeds buy replacement shares by the end of the next year. The window becomes the year of sale plus three calendar years. A simple agreement for future equity extends it to five years. Proceeds never reinvested bear interest at the prescribed rate. The asset test during ownership drops from "all or substantially all" to "primarily," but the stricter test still applies at issuance and sale. It applies to dispositions from January 1, 2027, costs $150 million and has only a general NWMM clause (Tax Measures: Supplementary Information, Canada Growth Incentive – Rollover for Investments in Small Businesses).

Instalment payments. Individuals pay quarterly instalments when net tax owing exceeds $3,000 ($1,800 federal for Quebec residents). Corporations face a $3,000 threshold. From taxation years beginning on or after January 1, 2028, the threshold is $7,500 ($4,500 in Quebec), indexed and rounded to $500. People whose main income is a business may make one payment of two thirds by December 31, as farmers and fishers can today. Chapter 6 says nearly 1.1 million individuals and 185,000 small incorporated businesses leave the instalment system. The thresholds have not moved since 2008. The cost is $395 million. Draft text is in the NWMM (Tax Measures: Supplementary Information, Instalment Payments for Individuals and Corporations).

Taxable preferred shares. Part VI.1 tax applies to taxable preferred share dividends above a $500,000 allowance. CCPC dividends paid from Budget Day are exempt. For years ending after 2026, the allowance rises to $1,500,000, with the clawback starting at $3,000,000 of prior-year dividends. The cost is $91 million. Finance wants comments on the wider preferred share regime by January 8, 2027 (Tax Measures: Supplementary Information, Taxable Preferred Shares).

Registered pension plans. Revoking a plan after 2026 triggers a 10 per cent tax, and the plan is treated as a retirement compensation arrangement. From January 1, 2027, the individual pension plan (IPP) definition widens to plans whose members are all related to the employer or not at arm's length with a member who is. From 2028, IPPs face the registered-plan advantage and investment rules, with 50 and 100 per cent taxes. An IPP holding assets above 200 per cent of liabilities can lose registration. The tax rules now require only a contribution holiday above 125 per cent. This suggests owner-managers who built surplus in an IPP are the target. The measure raises $148 million (Tax Measures: Supplementary Information, Registered Pension Plans).

Registered Retirement Savings Plan. Finance proposes one RRSP for life, with minimum withdrawals after 71 and no conversion to a RRIF. The supplementary information calls it an intention under consultation, with submissions due January 8, 2027. Yet the Income Tax Act NWMM already contains draft amendments to paragraph 60(l) and section 146. Practitioners can read the drafting before the consultation closes. Table 1 shows no cost and no start date is given (Tax Measures: Supplementary Information, Registered Retirement Savings Plan).

Trust distributions to non-residents. Family trusts cannot roll property out tax-deferred to non-resident beneficiaries. Some planning routed it through a Canadian corporation owned by a non-resident. From Budget Day, no rollout is allowed to a corporation or partnership with a direct or indirect non-resident shareholder or partner. Draft text is in the NWMM. Table 1 shows a dash, which can mark a base-protection amount that cannot be estimated (Tax Measures: Supplementary Information, Trust Distributions to Non-Residents).

Form T1135. The foreign property reporting threshold doubles from $100,000 to $200,000 of cost. Simplified reporting applies below $500,000, up from $250,000. Chapter 6 says about a third of filers drop out. It applies to years ending after 2026 and costs $17 million (Tax Measures: Supplementary Information, Foreign Income Verification Statement – Form T1135).

Mineral Exploration Tax Credits. The 15 per cent credit and the 30 per cent critical minerals credit for flow-through share investors expire March 31, 2027. Both now run to agreements signed by March 31, 2032. Antimony joins the critical list for agreements after Budget Day. The cost is $956 million, the largest personal income tax line in Table 1 after the two benefit measures (Tax Measures: Supplementary Information, Mineral Exploration Tax Credit and Critical Mineral Exploration Tax Credit). Junior miners are the main beneficiaries, as the mining sector page explains.

Filing, deadlines and the CRA

Filing and balance-due dates. Most individuals file and pay by April 30. The self-employed file by June 15 but pay by April 30. From the 2027 taxation year, everyone files and pays by May 15. This implies the first new deadline is May 15, 2028. The self-employed lose a month to file and gain about two weeks to pay. Chapter 6 says taxpayers save $230 million in interest and penalties. The NWMM has only a general clause (Tax Measures: Supplementary Information, Income Tax Return Filing and Balance-Due Dates for Individuals).

Objections to assessments. Most taxpayers have 90 days to object. That becomes one year. Individuals and graduated rate estates get the later of one year and two years from the filing due date. Extension applications end. It applies to assessments sent from three months after royal assent. Corporations, which had only 90 days, gain about nine months (calculated) (Tax Measures: Supplementary Information, Objections to Assessments).

Disclosure to credit bureaus. The CRA may report final, unpaid income tax or GST/HST debts above $50,000 that are not under objection or appeal. It applies from royal assent. Both NWMMs carry only a general clause. Table 1 shows a dash, though the measure is meant to raise collections (Tax Measures: Supplementary Information, Disclosure of Tax Debt to Credit Bureaus).

Information sharing with pension administrators. The CRA may confirm a member's death to a registered pension plan administrator. Table 1 books a $30 million revenue gain over three years (Tax Measures: Supplementary Information, Information Sharing – Pension Administrators).

Deductions and credits

Optional flat amounts. Five claims get an optional flat amount for 2027 and later years. Moving expenses get $1,000 per move, subject to the same income limits. Clergy residence gets $1,000 a month, up to $12,000. Construction tradespeople get $1,500 a year for labour mobility against actual costs of up to $10,000. Home accessibility gets $1,000 once in a lifetime, against a $20,000 annual limit. Adoption gets $1,200 per child, against a $19,972 limit for 2026. The group costs $35 million (calculated). All five rely on a general NWMM clause (Tax Measures: Supplementary Information, Optional Flat Amounts for Personal Income Tax Deductions and Credits).

Medical Expense Tax Credit and Disability Supports Deduction. Listed items such as insulin, diabetes infusion pumps and CPAP machines no longer need a prescription. Listed assistive devices need certification of the condition. Optional flat amounts are $1,000 for gluten-free food (from 2026), $500 for incontinence products and $2,000 for a service dog (from 2027). The cost is $7 million (Tax Measures: Supplementary Information, Medical Expense Tax Credit and Disability Supports Deduction). The persons with disabilities page covers the wider package.

Northern Residents Deductions. The residency deduction is no longer reduced by special work site board and lodging, and loses its 20 per cent of net income cap. The travel deduction drops the $1,200 standard amount and the employer-benefit limit. The cost is $99 million from 2027 (Tax Measures: Supplementary Information, Northern Residents Deductions). See the North.

Intergenerational farm and fishing rollover. The rollover reaches nieces, nephews, grandnieces and grandnephews of the taxpayer or spouse, for transfers from January 1, 2027. The cost is $65 million (Tax Measures: Supplementary Information, Expansion of the Intergenerational Farm and Fishing Property Rollover). See farmers and fishers.

Registered Disability Savings Plan. The rule letting a parent, spouse or sibling open a plan for an adult whose capacity is in doubt was due to end in 2026. It becomes permanent. The cost is $39 million in grants and bonds (Tax Measures: Supplementary Information, Registered Disability Savings Plan).

Smaller changes. Apprentice vehicle mechanics deduct the full cost of new tools less the Canada Employment Credit amount ($1,501 in 2026), for $12 million. Commission employees can claim under both expense provisions, for $4 million. Employer tuition support no longer disqualifies a scholarship exemption. Employed artists can deduct expenses up to their artistic employment income, replacing the lesser of $1,000 and 20 per cent. The two volunteer credits merge into one 14 per cent credit on $6,000, with hours combined toward 200. All apply from 2027 (Tax Measures: Supplementary Information, Personal Income Tax Measures).

Private foundations. The excess corporate holdings regime, with its 20 per cent and 2 per cent tests, is repealed for years beginning on or after January 1, 2027. Private foundations instead cannot acquire control of a corporation, as public foundations already cannot (Tax Measures: Supplementary Information, Excess Corporate Holdings Regime for Private Foundations). The charities page covers the sector impact.

Business Income Tax Measures

Productivity Mega Deduction. This is the budget's biggest tax measure and it has no Table 1 line. Proposals released September 15, 2026, allow immediate write-off of capital assets that the budget says represent more than 65 per cent of investment, permanently. Exclusions are certain long-lived buildings and intangibles, some passenger vehicles, regulated gas distribution pipelines and resource-depletion property. Chapter 1 says the marginal effective tax rate on new investment falls from 13 per cent to 6.4 per cent. The cost is $2,015 million in 2026-27 and $36,055 million over five years. Annex 1 counts this forgone revenue as capital investment (Table A1.20). Legislation is still to be tabled. Eligible property acquired on or after September 15, 2026, qualifies (Budget 2026, Chapter 1, s. 1.1, and Budget in Brief).

The deduction shows in the revenue outlook. Corporate income tax falls from $104.2 billion in 2025-26 to $97.1 billion in 2027-28 and is $100.2 billion in 2030-31. Personal income tax rises from $247.7 billion to $309.3 billion over the same years (Budget 2026, Annex 1, Table A1.9). This implies corporate revenue does not regain its 2025-26 level within the horizon.

Clean Electricity and Clean Technology investment tax credits. The Clean Electricity credit is a refundable 15 per cent credit, and the Clean Technology credit a refundable 30 per cent credit. Both end for property in use from 2035. Both now run to property in use before 2041, with the Clean Technology rate falling to 15 per cent in 2040. Prevailing wage and apprenticeship rules still govern full rates. It applies to property acquired from Budget Day and costs $2,420 million. The Clean Electricity credit also covers intra-provincial transmission built to each jurisdiction's highest voltage, with these floors (Tax Measures: Supplementary Information, Clean Electricity and Clean Technology Investment Tax Credits).

735 kilovolts in Quebec and Newfoundland and Labrador
500 kilovolts in Ontario, Manitoba, British Columbia and Alberta
345 kilovolts in Nova Scotia and New Brunswick
230 kilovolts in Saskatchewan
138 kilovolts in Prince Edward Island
69 kilovolts in the territories

Chapter 1 also opens a 60-day consultation on a domestic content bonus. It would add up to 10 percentage points to the Clean Technology credit and 5 to the Clean Electricity credit (Budget 2026, Chapter 1, s. 1.2). See the electricity page.

SR&ED. Regulatory testing and certification work, and patent, plant breeder and software copyright costs tied to eligible projects, become eligible for the deduction and the 35 per cent or 15 per cent credit. Foreign IP office fees count, but supporting IP work counts only if done in Canada. It applies to years beginning on or after Budget Day and costs $930 million, with $235 million ongoing. The NWMM has only a general clause (Tax Measures: Supplementary Information, Scientific Research and Experimental Development Tax Incentive Program). See the tech and AI page.

Interest deductibility limits. The proposed rental housing and regulated utility exceptions to the excessive interest and financing expenses limitation (EIFEL) now cover affiliated-group borrowing and partnerships at least 40 per cent held. The utility definition widens to prices set by Crown corporations or government-run markets. It is retroactive to years beginning on or after October 1, 2023. That likely explains why $235 million of the $555 million lands in 2026-27. Draft text is in the NWMM (Tax Measures: Supplementary Information, Interest Deductibility Limits).

Canadian Journalism Labour Tax Credit. The refundable credit covers 35 per cent of up to $85,000 of wages per newsroom employee, written news only. Audio and audiovisual newsrooms qualify for expenses from Budget Day. The 35 per cent rate, due to end December 31, 2026, runs to December 31, 2028. The cost falls from $170 million in 2028-29 to $85 million in 2029-30. This suggests the budget assumes the rate drops back after 2028 (Tax Measures: Supplementary Information, Canadian Journalism Labour Tax Credit). See arts, culture and media.

Helium. Helium exploration becomes Canadian exploration expense, deductible at 100 per cent. Development becomes Canadian development expense at 30 per cent, or 100 per cent under the Mega Deduction. Property costs become oil and gas property expense at 10 per cent. It applies to expenses from Budget Day and costs $54 million (Tax Measures: Supplementary Information, Helium Exploration, Development and Resource Expenses).

Administrative penalties. Most fixed penalties rise by a factor of two or three, then index every five years. One dates from 1927. Medium corporations (over $10 million to $50 million of taxable capital) pay three times the base. Large corporations pay eight times. Partnerships are tiered at $2 million and $10 million of revenue. Repeat failures within three years double the base. Penalties now apply explicitly under the Common Reporting Standard, digital platform and crypto-asset regimes. The Excise Act, 2001 demand-to-file penalty rises from $250 to $1,000. The $117 million gain was already provisioned in Budget 2025, so the net is zero (Tax Measures: Supplementary Information, Administrative Penalties). The expenditure review page covers the wider fines package.

Corporate loss transfers. Corporations are taxed alone and cannot use a sister company's losses. Finance proposes letting wholly owned groups transfer current-year non-capital losses, and asks for comments by January 8, 2027. Provincial tax bases and tax integrity are the stated concerns, as in the 1985 and 2010 consultations (Tax Measures: Supplementary Information, Corporate Loss Transfers).

Corporate tax elections. Elections such as capital dividend elections no longer need a certified directors' resolution, from royal assent (Tax Measures: Supplementary Information, Corporate Tax Elections).

International Tax Measures

Taxable Canadian property. Buyers withhold 25 per cent of the price when a non-resident sells capital property, or 50 per cent for specified property such as real estate inventory. Non-resident corporations would face 15 per cent withholding and a 15 per cent remittance, and 30 per cent for specified property. Fully deferred section 85 rollovers need no withholding if filings are made within 30 days. The anti-avoidance window grows from three to five years. It applies to dispositions from January 1, 2027, and costs $63 million (Tax Measures: Supplementary Information, Taxable Canadian Property).

Common Reporting Standard. Finance is consulting on closing two gaps found in peer review, covering certain investment entities and partnerships. Comments are due December 31, 2026. Neither NWMM includes it (Tax Measures: Supplementary Information, Common Reporting Standard).

Budget 2026 contains no new international measure on digital services or the global minimum tax. Technical Global Minimum Tax Act amendments released July 23, 2026, are confirmed.

Sales and Excise Tax Measures

Fuel excise tax suspension extension. The federal excise tax on gasoline, diesel and aviation fuel was suspended from April 20, 2026. Relief now runs to the end of January 2027, then half rates to March 31, with full rates from April 1, 2027. Chapter 3 books $2,870 million, all in 2026-27, for total 2026-27 relief of $5.3 billion. The extension was announced September 2 and is already in Bill C-38 (FINA, Oct 5). This budget re-announces it. Other excise taxes and duties fall from $13.1 billion in 2025-26 to $7.7 billion in 2026-27, then recover to $12.9 billion (Budget 2026, Annex 1, Table A1.9).

GST/HST health measures. Massage therapy by qualifying practitioners becomes exempt, so clients pay no GST/HST. Therapists lose input tax credits on related costs. Alternating electric field therapy devices for cancer become zero-rated. It applies to supplies after Budget Day and costs $199 million. Draft text is in the excise NWMM (Tax Measures: Supplementary Information, GST/HST Health Measures).

Financial institution input tax credit methods. Large financial institutions must seek approval each year to use their own allocation method. Applications can cover up to three fiscal years, from years beginning after June 30, 2027 (Tax Measures: Supplementary Information, Pre-Approval Regime for GST/HST Input Tax Credit Allocation Methods of Financial Institutions).

Product descriptions. Sales and excise rules still cite pre-1998 customs codes. They are updated, with changes for cargo containers, rolling stock, travelling shows and e-bikes (Tax Measures: Supplementary Information, Product Descriptions and Regulatory Cross-References in Sales and Excise Tax Rules).

Cannabis. A common excise stamp for same-rate jurisdictions is usable from January 1, 2028, cutting unique stamps from 13 to 6. Provinces confirm by January 31, 2027. Old stamps phase out by June 30, 2029. New penalties cover unstamped products and missing inventory (Tax Measures: Supplementary Information, Cannabis Taxation).

Spirits licence security. Security is based on monthly duty liability, from $5,000 to $2 million per licence, for licences issued after royal assent. Excise warehouses holding non-duty-paid packaged spirits must also post it (Tax Measures: Supplementary Information, Spirits Licence Security Requirements).

Fuel excise licensing. Wholesaler licence eligibility widens and licensed manufacturers get resale relief. A one-time payment covers fuel taxed twice between January 1, 2017, and Budget Day. It costs $20 million in 2027-28 (Tax Measures: Supplementary Information, Federal Fuel Excise Tax Licensing Framework).

Other Tax Measures

Indigenous tax jurisdiction arrangements. The revenue share under First Nations Personal Income Tax arrangements rises from 95 per cent to 99 per cent. First Nations GST arrangements get an annual ceiling on the participating government's share of Groceries and Essentials Benefit costs. Both come by negotiation, with no Table 1 line and no NWMM text (Tax Measures: Supplementary Information, Indigenous Tax Jurisdiction Arrangements).

Ministerial delegations. Livestock deferral regions, automobile limits, foreign spin-offs, donee receipt rules and tax agreements move from regulation or cabinet approval to ministerial decision. The Revenue Minister no longer has to consult Finance before registering a foreign charity (Tax Measures: Supplementary Information, Ministerial Delegations).

Previously Announced Measures Confirmed

Budget 2026 confirms these earlier proposals, "with any modifications resulting from consultations and deliberations since their release" (Tax Measures: Supplementary Information, Previously Announced Measures).

Proposal	Released
Productivity Mega Deduction	September 15, 2026
Disability Tax Credit, Red Seal Completion Bonus, carbon capture credit, insurance-risk investment income, transfer pricing, hybrid mismatches, GST/HST reverse charge, technical amendments to the Income Tax Act, Global Minimum Tax Act and excise statutes	July 23, 2026
Reporting requirements for non-profit organizations	January 29, 2026
Technical Income Tax Act amendments	August 12, 2024
Non-compliance with information requests (excise statutes)	Budget 2024
Tax-exempt sales of motive fuels for export	August 4, 2023
Technical amendments and remaining excise duty proposals	August 9, 2022

The July 23 package includes Spring Economic Update 2026 items, such as the Disability Tax Credit changes and the carbon capture credit for enhanced oil recovery. Some items date to 2022 and are still not law. Bill C-31, already before Parliament, carries automatic tax filing, a narrower Canadian Exploration Expense and temporary expensing for manufacturing buildings (FINA, Oct 5). The confirmed list does not include them.

Effective Dates Calendar

Date	Measure
Years from Oct 1, 2023	EIFEL exceptions (retroactive)
Jan 1, 2017 to Nov 5, 2026	Fuel excise double-taxation payment window
2026 taxation year	Medical expense documentation, gluten-free flat amount
Sept 15, 2026	Mega Deduction property acquired from this date
Nov 5, 2026 (Budget Day)	CGI exemption shares, trust distributions, clean ITC property, SR&ED years, journalism credit, CCPC preferred dividends, helium
Nov 6, 2026	Fuel excise manufacturer relief, antimony agreements, GST/HST health supplies
Dec 31, 2026	Common Reporting Standard comments due
Years ending after 2026	T1135 thresholds, preferred share allowance
Jan 1, 2027	Rollover dispositions, farm and fishing rollover, taxable Canadian property, IPP status, foundations
2027 taxation year	Caregiver credit, BCWB, Advance CWB at 25 per cent, May 15 dates, northern deductions, flat amounts, tools, commission, scholarships, artists, volunteers
January 2027	Supplement payment, fuel excise relief ends Jan 31
Jan 8, 2027	RRSP, loss transfer and preferred share comments due
Jan 31, 2027	Cannabis common stamp opt-in
Apr 1, 2027	Full fuel excise rates
After June 2027	Lump-sum thresholds
Years after June 30, 2027	Input tax credit pre-approval
Periods ending after 2027	Income tax administrative penalties
Jan 1, 2028	Instalment thresholds, IPP investment and surplus rules, cannabis stamp, CRS penalties, no advance CWB
May 15, 2028	First single filing and payment date (inferred)
Dec 31, 2028	Journalism credit 35 per cent rate ends
June 30, 2029	Province-specific cannabis stamps end
Mar 31, 2032	Exploration credit agreements deadline
Before 2037	CGI qualifying share issuance
Before 2041	Clean ITC property in use
Royal assent or later	Objections, credit bureaus, pension sharing, elections, spirits, product codes, wholesaler licensing

What Was Not Changed

Table 1 and the supplementary information propose no change to personal income tax rates or brackets. The general and small business corporate rates, the small business deduction limit and the capital gains inclusion rate are untouched. So are the GST/HST rate, its registration threshold, RRSP and TFSA contribution limits and the Alternative Minimum Tax, apart from the exemption's treatment. No comprehensive tax review is announced. Fifteen income tax measures, including the Growth Incentive, filing dates and SR&ED, rely on a general NWMM clause with no draft text. Advisers will not see final wording until a bill is tabled.

Before tabling, the Globe and Mail reported signals that "narrowly focused tax breaks" were more likely than an overhaul (Globe and Mail, Oct 29). That held. Sources told the National Post (Oct 23) a lower small business rate was possible. The rate does not change.

What they asked for	Source	In the budget?
Raise the founders' capital gains exemption to $15 million	Patrick Searle, CCI, and Benjamin Bergen, CVCA, BNN Bloomberg, Oct 6	Delivered. New $15 million exemption for shares issued from Budget Day.
Lower tax when sale proceeds are reinvested in Canadian firms	Patrick Searle, CCI, and Benjamin Bergen, CVCA, BNN Bloomberg, Oct 6; Daniel Perry, CCI, CBC News Network, Nov 2	Delivered. The groups described a deferral, and the existing rollover's window grows to the sale year plus three, or five with a SAFE.
Tax-free business sale gains reinvested in a CCPC within three years	CFIB, release, Oct 7	Partly. Share sales get a longer deferral, and asset sales get nothing.
Cut the capital gains inclusion rate to 33% for small firms	CFIB, release, Oct 29	Not in this budget.
Raise the small business deduction threshold to $700,000	CFIB, release, Oct 7; Dan Kelly, CFIB, CTV News Channel, Oct 31	Not in this budget.
Cut the small business tax rate from 9% to 6%	CFIB, release, Oct 29; Dan Kelly, CFIB, CTV News Channel, Sep 16; CBC News Network, Nov 2	Not in this budget. The rate is unchanged.
Raise the GST/HST registration threshold to $60,000	CFIB, release, Oct 7	Not in this budget.
A deduction of up to $20,000 for the self-employed	CFIB, release, Oct 7	Not in this budget. The self-employed get a single annual instalment option.
Renew the Mineral Exploration Tax Credit, ideally five years	Mining Association of Canada, FINA, Oct 8	Delivered. Both credits run to March 31, 2032.
Make both exploration credits permanent	PDAC, Hill Times, Oct 19	Partly. A five-year extension, plus antimony.
Drop Bill C-31's narrowing of exploration expense	Mining Association of Canada, FINA, Oct 8	Not in this budget.
Permanent immediate expensing for manufacturing buildings	CME, FINA, Oct 6	Not in this budget. The Mega Deduction excludes certain long-lived buildings.
Expand and extend the productivity super deduction	Matthew Holmes, Canadian Chamber of Commerce, CTV News Channel, Sep 15	Delivered. Confirmed as the Mega Deduction, $36,055 million over five years.
Commit to a comprehensive, time-bound tax review	CPA Ontario coalition, release, Oct 23; CME, FINA, Oct 6; Kim Moody, Financial Post, Oct 27	Partly. A first simplification package now and a second promised for spring 2027, with no independent review.
Compensate Quebec for harmonizing with the Mega Deduction	Government of Quebec, Les Affaires, Nov 4	Not in this budget. It offers no compensation to provinces that adopt the Mega Deduction.
Raise the GST credit by up to $300 per household	Jean-Denis Garon, Bloc Québécois, CPAC, Nov 4	Delivered. A one-time supplement pays up to $339 for a single person and $679 for a couple with two children.
Make the fuel excise suspension permanent	CTF, FINA, Oct 5; Philip Lawrence, Conservative MP, FINA, Oct 5	Partly. The suspension, extended September 2, runs only to the end of January 2027. Full rates return April 1, 2027.
Raise the RRSP limit to 30% of earned income	CFFiM, Financial Post, Oct 28	Not in this budget.
A new renter's tax credit	House Finance Committee, Telegraph-Journal, Nov 5	Not in this budget. No renter credit appears in the tax measures.
Extend the GST new-home rebate to all buyers	Canadian Home Builders' Association, Toronto Star, Nov 2	Not in this budget. The rebate stays limited to first-time buyers.
Add zinc to the clean technology manufacturing credit	Glencore, Hill Times, Nov 2	Not in this budget.
Restore the digital services tax	Bloc Québécois, Western Standard, Nov 3; Jean-Denis Garon, CPAC, Nov 4	Not in this budget. The budget does not mention the tax.
Introduce a wealth tax	NDP, Western Standard, Nov 3	Not in this budget.

Asks compiled by Stephen Taylor's AI Public Affairs Toolset, September 15 to November 5, 2026.

Net Assessment

Budget 2026's tax package has three parts. A permanent investment write-off costs $36,055 million and sits outside Table 1. A one-time benefit payment costs $4,055 million. The rest is many small changes, most costing under $100 million. Business gets the lasting relief. Households get a payment in January 2027 and a reworked workers' benefit that saves the government money from 2028-29.

For founders and investors, the Growth Incentive is this budget's biggest change. Its integrity rules and statutory text are still to come. Owner-managers with large individual pension plans face new taxes from 2028. Non-resident corporations selling Canadian property get lower withholding. Individuals get a single May 15 deadline, and most taxpayers get a year to object.

The package's costs grow after the horizon. The clean electricity and clean technology credits cost $36.1 billion from 2031-32 to 2041-42, and the capital gains exemption reaches $485 million in its second year of cost. Practitioners should watch three things. The first is the January 8, 2027 consultations on RRSPs, loss transfers and preferred shares. The second is the integrity rules for the Growth Incentive. The third is the bill that turns 15 general clauses into law. For sector effects, see the small business, pensions and investment and taxpayers pages.