Making it easier for Canadians to manage their taxes

$821M net impact on the budgetary balance over five years, 2026-27 to 2030-31.

The cost line

… no change to existing funding or no fiscal implication · – a further extension will be considered later · 0* less than $0.5 million. Positive numbers cost the budget (spending or forgone revenue); negative numbers improve it.

What the budget says

“To save Canadians time and effort while making it easier for them to meet their tax obligations, Budget 2026 proposes to: Amend the Income Tax Act to increase the instalment thresholds, which have not changed since 2008, to $7,500 and index them to inflation.”

Budget 2026, p. 290 (PDF p. 308)

“In addition, Budget 2026 proposes to simplify the instalment regime for self-employed business owners, including by allowing them to make a single payment of two thirds of their net tax owing by December 31.”

Budget 2026, p. 290 (PDF p. 308)

“To reduce the time and effort Canadians are required to spend managing their tax affairs, Budget 2026 proposes practical changes to simplify deadlines, filings, and interactions with the CRA, ultimately reducing the time tax on Canadians: Make tax filing simpler and more accurate by setting May 15 as the single due date for filing returns …”

Budget 2026, p. 290 (PDF p. 308)

“Budget 2026 proposes to provide most taxpayers with one year after a notice of assessment is sent to file an objection, while individuals and graduated rate estates would have until the later of that date and two years after their tax return filing due date.”

Budget 2026, p. 291 (PDF p. 309)

Amounts named in the text

Stated amounts can cover different periods, cash or accrual bases, previously announced money and loans. They are not additive with the cost line above.

• $230 million
• $55 million
• $99 million over four years, starting in 2027-28, and $26 million ongoing
• $39 million over five years, starting in 2026-27, and $15 million per year
• $12 million over four years, starting in 2027-28, and $3 million ongoing
• $4 million over four years, starting in 2027-28, and $1 million ongoing
• $27 million over four years, starting in 2027-28, and $7 million per year
• $7 million over four years, starting in 2027-28, and $2 million per year

Also in this section

• Connecting more Canadians to federal benefits$334MProgram spendingHouseholds
• Making it easier to do business$236MTax measureBusinesses
• Making it easier to manage retirement savingsno cost lineNo cost line