Federal Benefits: CRA to Automatically File Taxes for Millions of Low-Income Canadians Starting 2026

The Canada Revenue Agency (CRA) will begin automatically filing tax returns for low-income Canadians starting with the 2026 tax year, Prime Minister Mark Carney announced on Friday.

The move aims to ensure that individuals who do not file taxes still receive the federal benefits they qualify for.

 

Carney said the initiative, called automatic federal benefits, will initially cover about one million people and expand to reach 5.5 million by the 2028 tax year. The measure targets Canadians who often miss out on key supports because they do not file tax returns due to limited resources or low income.

 

The CRA will prepare pre-filled tax returns for individuals with simple tax situations through its My Account online system. The rollout will build on existing digital tools, such as the Auto-fill my return service, which automatically populates sections of tax forms for users of certified commercial software. The SimpleFile service will continue to offer a quick filing option for those with straightforward tax circumstances.

Eligible Canadians could automatically receive benefits such as the GST/HST credit, the Canada Child Benefit, the Canada Worker’s Benefit, and the Canada Disability Benefit.

Carney said the upcoming 2025 federal budget will prioritize efficiency by reducing government operational spending and directing savings toward essential programs that lower living costs.

Carney also announced two other initiatives. The National School Food Program will be made permanent, offering meals to as many as 400,000 children and easing grocery costs for families by about $800 a year for two children. In addition, the Canada Strong Pass will return from December 12, 2025, to January 15, 2026, and again in summer 2026, giving families and young adults discounted or free access to national parks, museums, historic sites, and reduced VIA Rail fares.

One Comment

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  1. jon

    Yes!!! Taxes always were a mystery. Since CRA already know everything about my employment why do I need to regurgitate the information back to them?

    October 12, 2025 at 10:23 PM

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