Canada’s 2026 federal budget, titled Masters of our destiny, was tabled on November 5, 2026 by Finance Minister François-Philippe Champagne. Themes include an investment supercycle, affordability, sovereignty, and fiscal discipline. The government says the operating budget is on track to balance with revenues by 2027-28 (one year ahead of the Budget 2025 target), with a declining deficit-to-GDP ratio and the lowest net debt-to-GDP among G7 countries.
Many measures below are proposals. They take effect only if federal legislation passes, and details can change. Here is what Budget 2026 proposes for households, benefits, housing, registered accounts, and business owners.
The middle-class tax cut already in place is framed as progress for nearly 22 million Canadians, with a two-income family able to save up to $840 this year.
The consumer carbon price has been removed, estimated at about 18 cents per litre lower gasoline prices in most provinces and territories. The federal fuel excise tax suspension is extended: full relief to the end of January 2027, then 50% of pre-suspension rates to the end of March 2027, with standard rates returning April 1, 2027. While full relief is in place, relief can reach up to 10¢/L for gasoline and 4¢/L for diesel, or more than $5 on a typical 50-litre tank. The extension is about $2.9 billion; total estimated fuel tax relief in 2026-27 is $5.3 billion. Combined carbon and fuel relief can reach up to about 28¢/L when both apply (about 18¢/L carbon plus up to 10¢/L fuel).
First-time homebuyers may already benefit from a GST cut or rebate on new homes, saving up to $50,000 under the current rules.
Budget 2026 proposes a 2027 Canada Groceries and Essentials Benefit (CGEB) Supplement. The CGEB (formerly the GST Credit) reaches more than 12 million Canadians. The one-time 50% increase for the 2026-27 benefit year would be delivered in early 2027. Maximum supplement amounts are $223 per adult, $117 per child, and a $117 single supplement (up to $339 for a single person without children; up to $679 for a couple with two children). Combined with the June 2026 top-up and the 25% increase from July 2026, support in 2026-27 could reach about $1,290 for a single person and about $2,570 for a couple with two children. The package is estimated at $4.1 billion and is expected to lift an additional 120,000 people out of poverty in 2027.
The Build Canada Workers Benefit would enhance and rename the Canada Workers Benefit for 2027+. The phase-in threshold would fall to $500 from $3,000. Maximums would rise to $1,859 for singles and $3,143 for families (from $1,709 and $2,943). About 1.9 million workers could be affected, including 180,000 new recipients, with an estimated lift of 240,000 people out of poverty. Advance Canada Workers Benefit payments would drop to 25% for 2027 and end from 2028.
The Canada Caregiver Credit is proposed to become fully refundable from 2027, for up to $1,260 in tax relief for 2027 (on a $9,001 amount at the lowest rate) for certain dependants. About 585,000 caregivers could benefit, including 180,000 new ones; the change could lift roughly 15,000 people out of poverty. Automatic Federal Benefits aims to help up to 5.5 million low-income Canadians access benefits they are entitled to, such as the Disability Tax Credit. Nutrition North Canada would receive $610.3 million over four years starting 2027-28, plus ongoing amounts.
Budget 2026 sets out about $44.7 billion over 11 years (cash basis) on a path to end homelessness in 10 years and expand non-market housing, with a capital boost for Build Canada Homes. Proposed mortgage insurance changes include raising the home price limit for optional insurance from $1 million to $1.5 million, and allowing 30-year amortizations for insured mortgages for first-time buyers or newly built homes. The ban on foreign purchases of existing residential properties would extend two years to January 1, 2029 (new homes exempt).
A National Heat Pump Rebate of more than $2 billion is intended to help up to 820,000 households. With other retrofit measures, the government projects more than $1 billion a year in energy bill savings once fully implemented.
Budget 2026 announces an intention to merge the RRSP and RRIF into an “RRSP for life,” ending forced conversion at age 71 while minimum withdrawals continue after 71. Consultation is open until January 8, 2027 at RRSP-consultation-REER@fin.gc.ca. This is not enacted. No TFSA or RRSP contribution limit changes were announced in the Budget 2026 tax annex for contribution room.
The temporary RDSP qualifying family member measure would become permanent. The intergenerational farm and fishing property rollover would expand to nieces, nephews, grandnieces, and grandnephews for transfers on or after January 1, 2027.
For 2027+ taxation years, T1 filing and balance-due dates would move to May 15 for all individuals, including the self-employed. Instalment thresholds would rise from $3,000 to $7,500 outside Quebec and from $1,800 to $4,500 in Quebec for years beginning on or after January 1, 2028 (indexed). Optional flat amounts for certain deductions and credits from 2027 would simplify some claims. The Form T1135 foreign property filing threshold would rise from $100,000 to $200,000, with simplified reporting expanding from under $250,000 to under $500,000 for years ending after 2026.
The Productivity Mega Deduction would permanently allow immediate expensing for a broad range of depreciable property acquired on or after September 15, 2026, with the full cost deductible in the year the property becomes available for use. The government estimates the marginal effective tax rate on new business investment would fall from 13% to 6.4%, with roughly two-thirds of capital assets qualifying versus about 15% before. A government projection over 10 years points to up to about 80,000 jobs and about $22 billion in annual GDP.
The Canada Growth Incentive would offer a capital gains exemption of up to $15 million on qualifying shares of qualifying Canadian-controlled private corporations issued on or after Budget Day and before 2037 (strict eligibility; many professions and sectors excluded). An enhanced small business rollover would allow a longer replacement period (year of disposition plus three years, or up to five with a SAFE) for dispositions on or after January 1, 2027.
SR&ED support would expand by $930 million, including certain commercialization, regulatory certification, and intellectual property protection costs for taxation years beginning on or after Budget Day. Clean Electricity and Clean Technology investment tax credits would extend to property available for use before 2041. The Mineral Exploration Tax Credit and Critical Mineral Exploration Tax Credit would extend five years to flow-through agreements on or before March 31, 2032, with antimony added to the eligible mineral list.
Budget 2026 proposes a wide set of affordability, housing, benefit, and investment measures. Timelines, eligibility, and dollar amounts depend on legislation and later guidance. Reviewing how each proposal could touch your household, benefits, home, registered accounts, or business is a useful next step as details firm up.