# Tax changes for the 2027 season in Canada: what is new for 2026 returns

Source: https://canadataxdesk.com/filing/tax-season-whats-new
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: Filing Your Return
Last updated: 2026-09-18

> The main tax changes for the 2027 season in Canada apply to 2026 income: the lowest federal rate is 14% for the whole year, the first bracket rises to $58,523 and the basic personal amount to $16,452. Budget 2025 also proposed automatic filing and a personal support workers credit. The 2027 brackets and TFSA limit are not yet announced.

## Key facts

- Lowest federal rate on 2026 income: 14% (14.5% blended for 2025)
- 2026 first bracket: Up to $58,523
- 2026 basic personal amount: $16,452 maximum
- 2026 filing deadline: April 30, 2027 (June 15, 2027 if self-employed)
- 2027 brackets: Not yet announced (usually November)

## Tax changes 2027 Canada filers should know first

The return you file in spring 2027 covers income earned in calendar 2026. So when people search for tax changes in 2027, what they usually need is the list of rules that apply to the **2026 tax year**. Most of those changes are already published by the CRA, and a few are still proposals from Budget 2025.

The biggest change is simple: 2026 is the first full year taxed at the lower 14% federal rate. The rate cut took effect on July 1, 2025, so your 2025 return used a blended 14.5% rate. Your 2026 return uses 14% from January to December.

The filing deadline does not move. Most people must file and pay by Friday, April 30, 2027. Self-employed people and their spouses or common-law partners have until Tuesday, June 15, 2027 to file, but any balance is still due April 30. For the full filing process, see our [guide to filing a tax return in Canada](https://canadataxdesk.com/filing).

## Canada federal tax changes 2026: rates and brackets

The federal brackets were indexed by 2.0% for 2026. Combined with the lower first rate, most people pay slightly less federal tax on the same income than they did in 2025.

| Rate | 2025 taxable income | 2026 taxable income |
| --- | --- | --- |
| Lowest rate | 14.5% up to $57,375 | 14% up to $58,523 |
| 20.5% | $57,375 to $114,750 | $58,523 to $117,045 |
| 26% | $114,750 to $177,882 | $117,045 to $181,440 |
| 29% | $177,882 to $253,414 | $181,440 to $258,482 |
| 33% | Over $253,414 | Over $258,482 |

Federal brackets, 2025 compared with 2026

### Is the lowest tax rate 14% for 2026?

Yes. The CRA's current-year rates page lists 14% on the first $58,523 of 2026 taxable income. Here is a worked example before credits: on $50,000 of taxable income, federal tax at the lowest rate is $7,000 for 2026 (14%), compared with $7,250 at the 2025 blended rate (14.5%). That is a $250 difference before any credits are applied. Our page on the 14% lowest tax rate shows more examples.

### Why your credits are worth a little less

Most federal non-refundable credits are calculated at the lowest rate. When the rate falls, each credit dollar is worth less. The 2026 basic personal amount of $16,452 is worth $2,303.28 at 14%. The basic personal amount is reduced for net income between $181,440 and $258,482, down to a minimum of $14,829.

To stop larger claims from shrinking, a temporary non-refundable top-up tax credit keeps a 15% rate on credit amounts above the first bracket threshold. It applies for the 2025 to 2030 tax years and mostly helps people with large claims such as tuition carried forward or big medical bills.

## New tax rules Canada 2026: credits and proposals

Budget 2025 announced several measures that start with the 2026 tax year. The CRA's Budget 2025 page, last modified April 17, 2026, still lists the individual measures below as **proposed**, meaning they need legislation before they can be claimed as described.

- **Personal Support Workers Tax Credit (proposed):** a refundable credit for 2026 to 2030 equal to the lesser of $1,100 and 5% of eligible earnings. Work in British Columbia, Newfoundland and Labrador and the Northwest Territories is excluded. Details are on our personal support workers tax credit page.
- **No double claims for accessibility costs (proposed):** from 2026, an expense claimed as a medical expense could no longer also be claimed under the home accessibility tax credit.
- **Automatic tax filing (proposed):** the CRA would get authority to file a return for certain people, generally those who owe no tax, starting with the 2026 tax year. See [automatic tax filing by the CRA](https://canadataxdesk.com/filing/automatic-tax-filing-cra).

> **Budget targets are not guarantees:** Budget 2025 described a first wave of about one million lower-income people with simple returns for automatic filing, growing to about 5.5 million for the 2028 tax year. Treat these as the government's stated targets. Actual reach in 2027 will depend on the final rules.

### What ended

The federal fuel charge ended April 1, 2025. The 2025 return was the last year the related fuel charge credit for businesses was available, so it will not appear on 2026 returns.

## Registered account limits for the 2026 tax return

| Account | Figure | Status |
| --- | --- | --- |
| RRSP dollar limit, 2026 | $33,810 | Published |
| RRSP dollar limit, 2027 | $35,390 | Published |
| RRSP deadline for 2026 deductions | March 1, 2027 | Expected; confirm when CRA posts it in January |
| TFSA annual limit, 2026 | $7,000 | Published |
| TFSA annual limit, 2027 | Not yet announced | Usually confirmed in November |
| FHSA annual room | $8,000 ($40,000 lifetime) | Published |

Registered account figures that matter for 2026 returns

The Home Buyers' Plan also changed. For withdrawals made from January 1, 2026 to December 31, 2028, repayments start in the fifth year after the first withdrawal. A 2026 withdrawal has its first repayment year in 2031. Our RRSP contribution limit page explains how the 18% rule interacts with the dollar cap.

## CRA account and service changes for the tax return 2026 Canada season

Several service changes took effect in February 2026 and will still apply when you file in 2027. They affect where you find documents rather than how much tax you pay.

1. Digital notices of assessment and reassessment can only be viewed in My Account. If you picked online mail, the notice will not arrive as an attachment anywhere else.
2. CRA account users must have a backup multi-factor authentication option on file. Set it up before tax season so a lost phone does not lock you out.
3. Copies of tax slips can no longer be requested by phone. Download them in My Account or ask the employer or bank that issued them.
4. Individuals owing $1,000 or more can set up a payment arrangement themselves under Manage balance in My Account.
5. The CRA said the NETFILE access code would be easier to find inside My Account.

NETFILE for the current season stays open until January 29, 2027. The CRA then closes it for maintenance before the next season starts. If you are unsure about sign-in, the [CRA My Account guide](https://canadataxdesk.com/cra-account) covers the setup steps.

## Items not yet announced for the 2027 season

Some numbers you may be looking for do not exist yet. The CRA publishes them on a fairly regular cycle, shown below. Until then, any figure you see for these items is a projection, not an official amount.

- 2027 federal and provincial brackets and the 2027 basic personal amount: usually released in November. Our next-year brackets page will be updated when they appear.
- 2027 TFSA limit and 2027 CPP maximum pensionable earnings: usually confirmed in November.
- 2026 medical expense threshold, disability amount and social benefits repayment thresholds: published with the 2026 T1 package, usually in January.
- NETFILE and SimpleFile opening dates for the 2027 season: not yet announced. NETFILE opened on February 23 in 2026 and SimpleFile on March 9.

## Common questions

### What is changing for 2026 tax returns in Canada?

The lowest federal rate is 14% for the whole year, brackets rose 2.0%, and the basic personal amount is $16,452. Budget 2025 also proposed a personal support workers credit and automatic filing for some people, both starting with the 2026 tax year.

### When will the 2027 tax brackets be released?

They are not yet announced. The CRA usually publishes the next year's indexed brackets and basic personal amount in November.

### Is the April 30 deadline changing in 2027?

No. Most people must file and pay by April 30, 2027. Self-employed filers have until June 15, 2027 to file, but payment is still due April 30.

### Will my 2026 refund be bigger because of the 14% rate?

Only if your payroll deductions did not already reflect the lower rate. Employers used 2026 payroll tables built on the new rate, so for many employees the saving arrived on each paycheque rather than as a larger refund.

### Can I claim the personal support workers tax credit on my 2026 return?

It was still listed as proposed on the CRA's Budget 2025 page as of April 2026. If it becomes law as proposed, eligible workers could claim up to $1,100 for 2026.

## Sources

- [CRA: Tax rates and income brackets for individuals, current year](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html)
- [CRA: What you need for the 2026 tax filing season](https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/what-you-need-for-2026-tax-filing-season.html)
- [CRA: Budget 2025, select measures](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html)
- [CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits and YMPE](https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html)
- [CRA: Offering and expanding automatic tax filing services](https://www.canada.ca/en/revenue-agency/campaigns/offering-and-expanding-automatic-tax-filing-services.html)