RRSP-for-Life and New Tax Deductions to New Grocery Benefit: All the Perks and Changes Affecting Canadians in Budget 2026

Canada’s federal Budget 2026, tabled on November 5, proposes new financial benefits, tax credits, retirement savings reforms, immigration changes and consumer protections that could affect millions of Canadians.

Among the highlights are an additional grocery benefit payment, increased support for low-income workers and caregivers, a new RRSP-for-life, changes to income tax deadlines, GST/HST exemptions for massage therapy and higher protection for bank deposits.

The budget also proposes simplified tax deductions for medical expenses, moving costs and home renovations, alongside mortgage reforms, new immigration pathways and tax incentives for entrepreneurs.

Here are the major new benefits and changes affecting Canadians. Most are proposals and may require legislation, consultation or further implementation details.

New Payments and Benefits

• Extra Grocery Benefit Payment: More than 12 million Canadians would receive a one-time payment in early 2027, worth up to $339 for a single person and $679 for a couple with two children. Including earlier enhancements, total 2026-27 benefits could reach $1,290 and $2,570, respectively.
• Higher Canada Workers Benefit: Beginning with the 2027 tax year, maximum annual benefits would rise to $1,859 for individuals and $3,143 for families. The minimum earnings threshold would fall from $3,000 to $500, allowing approximately 180,000 additional low-income workers to qualify.
• Higher Benefits for Workers With Disabilities: The minimum earnings threshold for the disability supplement would decrease from $1,150 to $200. Eligible low-income workers could receive nearly $1,000 more annually when combining the enhanced workers benefit with the disability supplement.
• Changes to Workers Benefit Payments: Advance Canada Workers Benefit payments would be reduced by half starting July 2027 and eliminated beginning with the 2028 tax year. Eligible workers would instead receive their full entitlement after filing their tax returns.
• Refundable Caregiver Credit: Beginning with the 2027 tax year, eligible caregivers could receive up to $1,260 for certain adult dependants or $394 for qualifying spouses, eligible dependants and children under 18. Some spouse and dependant claims could qualify for additional top-ups. Actual amounts depend on eligibility and applicable income rules.
• Automatic Access to Benefits: Budget 2026 proposes additional CRA outreach funding to help an estimated 150,000 more Canadians receive federal benefits they are entitled to. The initiative would particularly target people disconnected from the tax and benefit system, building on previously announced automatic tax filing and benefit access measures.
• Nutrition North Canada Expansion: An additional $610.3 million over four years would support food subsidies and local food initiatives in remote northern communities, potentially helping residents manage higher grocery costs.

Retirement and Savings

• RRSP-for-life: Budget 2026 proposes an RRSP-for-life that would eliminate the requirement to convert RRSPs into RRIFs at age 71. Minimum withdrawals after age 71 would still apply. The government is consulting on the changes until January 8, 2027, and has not announced an implementation date.
• Easier RRSP Transfers After Death: Ottawa is considering allowing surviving spouses or common-law partners to become successor RRSP holders and introducing simpler direct tax-free transfers to eligible survivors. These arrangements remain under consultation, with the government still determining how the rules would operate.
• Expanded Disability Savings Plans: Beginning January 1, 2027, Budget 2026 proposes making permanent a temporary rule allowing qualifying parents, spouses, common-law partners or siblings to open RDSPs for eligible adults whose contractual capacity is in doubt and who lack legal representatives. The measure could improve access to disability savings grants and bonds.
• Higher Bank Deposit Insurance: Budget 2026 proposes increasing CDIC coverage from $100,000 to $250,000 per eligible deposit category, introducing temporary higher protection for events such as home sales, and removing limits on eligible deposits in registered and tax-free accounts. These changes are not yet in effect; stocks, bonds and mutual funds remain excluded.

Income Tax Changes

• New May 15 Tax Deadline: Budget 2026 proposes moving the personal income tax filing and payment deadline to May 15, beginning with 2027 returns filed in 2028. Most Canadians would gain 15 days, while self-employed individuals and their spouses would have an earlier filing deadline than the current June 15 date.
• Higher Tax Instalment Threshold: Beginning in 2028, the federal instalment threshold would rise from $3,000 to $7,500 for individuals outside Quebec and from $1,800 to $4,500 for Quebec residents. The thresholds would be indexed to inflation, reducing instalment requirements for eligible taxpayers. The corporate threshold would also rise to $7,500.
• Simpler Self-Employed Tax Payments: Beginning with the 2028 tax year, individuals whose primary income comes from business, professional or commission activities could make one annual instalment instead of quarterly payments. The instalment would equal two-thirds of their combined federal-provincial net tax owing, payable by December 31, with the balance due on the regular payment deadline.
• Higher Foreign Property Reporting Threshold: The Form T1135 filing threshold would increase from $100,000 to $200,000 in the cost of specified foreign property. The simplified reporting threshold would increase from $250,000 to $500,000. The changes would apply to taxation years or fiscal periods ending after 2026.
• Lower Withholding Tax on Canadian Property Sales: Budget 2026 proposes reducing withholding from 25% to 15% on certain taxable Canadian capital property sales by non-residents, and from 50% to 30% on specified property. The appendix addresses these reductions under corporate vendors. Proposed for January 1, 2027, the changes would affect withholding, not final tax liability.
• More Time to Challenge CRA Assessments: Most taxpayers would have one year after an income tax assessment is sent to file an objection. Individuals and graduated-rate estates would have until the later of that date or two years after their filing deadline. The change would apply to assessments sent at least three months after Royal Assent.
• Smaller Benefits Paid Annually: Budget 2026 proposes annual lump-sum payments when monthly Canada Child Benefits are below $50 or quarterly grocery benefits are below $70. The advance workers benefit threshold would also rise to $70 for 2027. Changes would apply to benefits paid after June 2027, without changing annual entitlements.

New Tax Deductions and Credits

• $1,000 Moving Expense Deduction: Eligible Canadians relocating for employment or full-time post-secondary education could claim an optional flat $1,000 deduction instead of itemizing expenses. The deduction remains limited to qualifying income and would apply beginning in 2027.
• $1,000 Home Accessibility Claim: Eligible Canadians could use a flat $1,000 expense amount under the Home Accessibility Tax Credit. The option would be available once in a lifetime, with documentation of qualifying renovations still required.
• $1,000 Gluten-Free Food Claim: Canadians medically certified as requiring a gluten-free diet due to celiac disease could claim a flat $1,000 medical expense amount for additional food costs, beginning with the 2026 tax year.
• $2,000 Service Dog Claim: Eligible Canadians could claim an optional $2,000 amount for qualifying service dog expenses under the Medical Expense Tax Credit or Disability Supports Deduction. Acquisition costs could be claimed separately, beginning in 2027.
• $500 Incontinence Products Claim: Canadians medically certified as requiring qualifying incontinence products could claim an optional $500 medical expense amount beginning with the 2027 tax year.
• $1,200 Adoption Expense Claim: Eligible adoptive parents could claim an optional flat $1,200 expense amount per child under the Adoption Expense Tax Credit in the year an adoption is completed.
• $1,500 Tradesperson Relocation Deduction: Eligible construction workers and apprentices temporarily relocating for employment could claim an optional flat $1,500 annual deduction instead of itemizing qualifying expenses, beginning in 2027.
• Higher Northern Residents Deductions: Beginning in 2027, Ottawa proposes removing the residency deduction’s 20% net-income limit and reductions for certain employer-provided lodging. Restrictions linking travel deductions to employer travel benefits or the $1,200 standard amount would also be removed.
• Bigger Tool Deductions for Apprentice Mechanics: Beginning in 2027, apprentice vehicle mechanics could deduct eligible tool costs under simplified rules, without the current apprenticeship-income-based reduction. The Canada Employment Credit amount would still be deducted.
• Higher Deductions for Commission Employees: Beginning in 2027, eligible commission employees could claim travel and vehicle expenses under general employee rules while also deducting other qualifying commission-related employment expenses, subject to applicable limits.
• Higher Expense Deductions for Employed Artists: Beginning in 2027, the existing $1,000 deduction cap would be replaced with a limit based on qualifying artistic employment income, allowing eligible artists to deduct more work expenses.
• Simplified Medical Expense Claims: Beginning in 2026, certain medical expenses would no longer require prescriptions, while others would require certification of the medical condition instead, simplifying eligible tax claims.
• Volunteer First Responder Tax Credit: Beginning in 2027, volunteer firefighters and search and rescue volunteers would use one combined credit, retaining the 14% non-refundable credit on $6,000. Hours from both activities would count toward the 200-hour requirement.
• Clergy Residence Deduction: Beginning in 2027, eligible clergy could claim an optional flat $1,000 monthly deduction, up to $12,000 annually, subject to remuneration and qualifying conditions.
• Scholarship Tax Exemptions: Beginning in 2027, employer or other arm’s-length financial assistance would no longer automatically disqualify educational programs from meeting the requirements for scholarship, fellowship and bursary tax exemptions.

GST/HST Changes

• No GST/HST on Qualifying Massage Therapy: Eligible massage therapy services would become exempt from GST/HST for services supplied after November 5, 2026. Therapists would need to satisfy applicable licensing or equivalent qualification requirements. The exemption is proposed and requires legislative implementation.
• GST/HST Relief for Cancer Treatment Devices: Devices specially designed for alternating electric field therapy to treat cancer would become zero-rated for GST/HST purposes. The measure would apply to qualifying supplies after November 5, 2026, subject to enactment.

Housing and Mortgages

• 30-Year Insured Mortgages: Proposed changes would permit 30-year amortizations under optional mortgage insurance when at least one borrower is a first-time homebuyer or the home is newly built.
• Higher Optional Mortgage Insurance Limit: The property price limit for optional mortgage insurance would rise from $1 million to $1.5 million, expanding financing options for qualifying properties.
• Mortgage Rate Transparency: The Bank of Canada would publish improved insured mortgage rate information, helping Canadians compare lenders. Ottawa would also consult on clearer mortgage prepayment penalty disclosures.
• CRA Mortgage Income Verification: A proposed CRA service would help participating lenders verify borrowers’ income, potentially simplifying applications and reducing mortgage fraud.
• Foreign Homebuyer Ban Extended: Restrictions on purchases of existing residential properties by non-Canadians would continue until January 1, 2029, with a proposed exemption for newly built properties.
• More Affordable Housing: Nearly $45 billion in proposed housing-related investments would support affordable, non-market, transitional and supportive housing, including assistance for people experiencing homelessness.

Banking and Consumer Protection

• Annual Bank Fee Statements: Budget 2026 proposes regulations requiring banks to provide customers with a single annual statement showing fees paid on chequing and savings accounts, making banking costs easier to compare.
• Credit Card Interest Payments: Ottawa would consult on legislation requiring credit card payments above the minimum to be applied first to balances carrying the highest interest rate, potentially reducing borrowing costs.
• Payday Loan Protections: Budget 2026 proposes amending the Criminal Code’s payday lending exemption to require a minimum 42-day repayment period, instalment payments and a prohibition on credit insurance charges.
• Easier Switching Between Providers: Ottawa proposes expanding data portability rights to telecommunications and air transportation, helping Canadians switch providers and securely reuse their information. Implementation would depend on a new federal data portability framework.
• Grocery Competition Measures: The federal government would work with provinces and territories to remove restrictive property controls limiting grocery competition and consult on practices preventing retailers from offering or advertising lower prices.
• Restrictions on Non-Compete Clauses: Ottawa would work with provinces and territories to expand restrictions on employment non-compete agreements, aiming for more consistent rules across Canada and greater worker mobility.
• Surveillance Pricing Protections: Budget 2026 proposes addressing surveillance pricing through modernized privacy legislation. Specific restrictions on using personal information for individualized pricing, enforcement mechanisms and implementation dates remain to be established.

Immigration Changes

• 380,000 Permanent Residents Annually: Canada’s 2027-2029 immigration plan maintains a target of 380,000 permanent resident admissions annually. This continues the previous plan’s target rather than introducing a new reduction.
• 370,000 New Temporary Residents Annually: Canada plans 370,000 new temporary resident arrivals annually from 2027 through 2029, covering specified international student and temporary worker streams.
• 150,000 New International Students: Annual targets remain at 150,000 new international student arrivals for 2027-2029. These figures concern new arrivals, not every international student already in Canada.
• 220,000 New Temporary Workers: Annual targets include 170,000 arrivals under the International Mobility Program and 50,000 through the Temporary Foreign Worker Program.
• Permanent Residence Opportunities for Up to 200,000 Temporary Residents: The budget proposes facilitating permanent residence for up to 200,000 people already in Canada by the end of 2027, including 100,000 eligible workers through Express Entry or Provincial Nominee Programs. Detailed eligibility and implementation rules remain necessary.
• Temporary Foreign Worker Program Reforms: The government proposes $151.5 million over five years to improve processing, strengthen employer compliance and align recruitment with regional labour shortages.
• Express Entry Changes: Economic immigration selection would continue emphasizing candidates with skills needed in strategic industries and occupations experiencing shortages, subject to immigration program requirements.
• Higher Francophone Immigration Targets: Targets for French-speaking permanent residents outside Quebec would rise to 9.5% in 2027, 10.5% in 2028 and 12% in 2029.

Culture, Recreation and Other Benefits

• Canada Creative Credit: Ottawa plans to consult on a non-refundable tax credit that, combined with the Basic Personal Amount, could recognize up to $45,000 of annual qualifying net business income from original artistic works. Details are expected in spring 2027.
• Free Museums for People Under 25: Budget 2026 proposes permanently free, year-round admission to Canada’s national museums for children and youth under 25, supported by $46.3 million over five years and ongoing funding.
• Canada Strong Pass Returns: The pass would return in summer 2027, offering free or discounted access to participating parks, museums, attractions and rail travel. Discounts would expand to Indigenous-led museums and cultural centres.
• More Recreation Facilities: Budget 2026 proposes $1.5 billion over nine years for building and upgrading community recreation facilities, including $750 million for ice rinks and $750 million for other facilities.
• Artist’s Resale Right: Proposed Copyright Act amendments would introduce an Artist’s Resale Right, allowing qualifying Canadian visual artists to receive financial benefits when their original artworks are subsequently resold.
• Higher Memorial Grants: Ottawa intends to increase the maximum Memorial Grant payment for eligible families of first responders who die as a result of their duties. Details are expected in spring 2027.
• More EI Support for Apprentices: Budget 2026 proposes temporarily increasing the minimum regular EI benefit weeks from 14 to 18 for apprentices taking full-time training, particularly those experiencing unemployment after technical training.
• More Job Retraining: Budget 2026 proposes $170 million in 2027–28 through the Workforce Tariff Response to support training and employment services for workers affected by tariffs and trade disruptions.
• Indigenous Workforce Training: A proposed Partnerships for Indigenous Workforce Readiness Fund would support skills development, apprenticeships and Indigenous-led employment services, particularly in major projects and high-demand industries.
• More Food Bank Funding: Budget 2026 proposes $124 million over three years, starting in 2027–28, to renew the Local Food Infrastructure Fund, supporting food banks, community kitchens, storage and distribution infrastructure.
• Canada Strong Notes: Ottawa intends to launch Canada Strong Notes in 2027, allowing Canadians to invest alongside the proposed Canada Strong Fund through participating financial institutions. The notes would provide principal protection and potential investment returns. Final terms remain unspecified.
• More Mental Health and Home Care Funding: Budget 2026 proposes $1.2 billion in 2027–28 to extend existing provincial and territorial agreements supporting mental health, addictions, home care and community care until March 31, 2028.
• More First Nations Housing and Infrastructure: Budget 2026 proposes over $32 billion over ten years for First Nations housing and infrastructure, including housing construction, water systems and essential community facilities.
• Employment Support for People With Disabilities: Budget 2026 proposes allocating $6.9 million in 2027–28 to extend Inclusion Canada’s Ready, Willing and Able initiative until March 31, 2028, supporting employment for people with intellectual disabilities or autism.
• Terry Fox Humanitarian Awards: Budget 2026 proposes $10 million in 2028–29 to support awards for post-secondary students who demonstrate humanitarian service, determination and community leadership.
• Free Digital Access to Canadian Books: A proposed free national digital lending collection would launch with at least 200 Canadian titles in 2027–28, expanding to more than 2,000 titles and supporting up to two million annual loans by 2031–32.

Entrepreneurs, Investors and Businesses

• $15 Million Canada Growth Incentive: Canadian-resident investors, founders and employees could exempt up to $15 million in capital gains per qualifying business on eligible shares issued from November 5, 2026, to before 2037. Shares generally require a 36-month holding period. Real estate, finance, agriculture, mining and several other industries are excluded.
• Expanded Small Business Capital Gains Rollover: Eligible investors could defer capital gains taxes when reinvesting proceeds from qualifying small business shares into another eligible Canadian small business, subject to the proposed rules.
• Expanded Family Farm and Fishing Property Transfers: Tax-deferred intergenerational transfers would extend to qualifying nieces, nephews, grandnieces and grandnephews, helping families transfer farming and fishing businesses beginning in 2027.
• Extended Mineral Exploration Tax Credits: The 15% Mineral Exploration Tax Credit and 30% Critical Mineral Exploration Tax Credit would extend to eligible flow-through share agreements entered into by March 31, 2032. Antimony exploration would also qualify for the 30% credit.
• Expanded Research and Development Support: Budget 2026 proposes expanding SR&ED tax incentives to cover certain commercialization-related costs, including regulatory approvals and intellectual property protection. The changes represent an estimated $930 million in tax support over five years.

Changes That Could Cost Canadians More

• Tax Debts Reported to Credit Bureaus: The CRA could report income tax or GST/HST debts exceeding $50,000 to credit bureaus after appeal rights expire, reasonable collection efforts and repayment opportunities have been provided, and taxpayers receive at least 30 days’ written notice.
• Higher Tax Penalties: Budget 2026 proposes doubling or tripling many older fixed-dollar tax penalties and indexing them to inflation every five years. Certain penalties would also increase for larger businesses and repeated violations. Most changes would apply to taxation years or reporting periods ending after 2027.

Most Budget 2026 proposals require legislative approval and additional program details before you can apply or claim benefits.

Government of Canada, Budget 2026: Masters of Our Destiny, November 5, 2026