Updated Checked by the Tax-Services.ca editorial team How we check
Tax news in Canada comes from three places worth trusting: Department of Finance announcements, laws that receive royal assent, and CRA pages that explain how the rules get applied. In 2026 the biggest pieces were two laws. One cut the lowest federal tax rate, and the other ended the underused housing tax. Both are described on canada.ca, and we checked them there.
What changed in Canadian tax law this year?
The Making Life More Affordable for Canadians Act (Bill C-4) received royal assent on 12 March 2026, according to Finance Canada. It lowers the first federal income tax rate from 15% to 14%, effective 1 July 2025, and Finance says that saves up to $420 per person. It also removes the federal consumer fuel charge for good and adds GST relief on new homes for first-time buyers.
The Budget 2025 Implementation Act (Bill C-15) received royal assent on 26 March 2026, per the CRA. It ended the underused housing tax for 2025 and later years. Returns for 2022 to 2024 still stand.
| Measure | Status on the official page |
|---|---|
| First federal rate 14% | In law, effective 1 July 2025 |
| Consumer fuel charge | Permanently removed by the same law |
| GST on new homes, first-time buyers | Eliminated up to $1 million, reduced from $1 million to $1.5 million, for agreements from 20 March 2025 through 2030 |
| Underused housing tax | No return or tax for 2025 and later; 2022 to 2024 still apply |
What does the lower first rate mean in dollars?
The math is short. The first bracket in our 2026 data runs to $58,523. One percentage point on that slice is $585.23. But the basic personal amount credit also drops, by 1% of $16,452, or $164.52. Net, that’s about $420.71 a year for someone earning over the top of that bracket, which lines up with Finance’s “up to $420”.
Lower earners save less, because the one-point cut only applies to the income they actually have in that bracket. To see what it does to your own year, run your numbers through the income tax calculator, then check the take-home pay calculator for the effect on a paycheque. Because the cut started part-way through 2025, that year’s return used a blend of the old and new rate. For 2026 the lower rate applies all year.
Which tax news should you not trust yet?
Anything about the capital gains inclusion rate needs care. The proposed rise to two-thirds was cancelled by the Prime Minister’s release of 21 March 2025. The inclusion rate is 50% for 2026, same as 2025, but confirm it on the CRA site before you sell anything big. The capital gains tax calculator uses 50%.
Also be wary of a headline that says “proposed”. A budget promise is not law until Parliament passes it. Bill C-15 was still described as not having received royal assent while it was before Parliament, then changed status in March.
Where should you check for updates?
Start with the Department of Finance’s tax policy page, which lists recent tax initiatives, legislation and reports. The CRA’s news pages carry announcements and have an RSS feed, so you can follow them without visiting daily.
A rule for reading any of it: look at the date, then at whether it says “proposed” or “royal assent”. If a site doesn’t show either, go to canada.ca and find the source yourself. Do the same for a provincial change, since provinces publish on their own sites.
Does a change apply to the return you’re about to file?
That depends on the effective date, not the date of the headline. A rule effective 1 January 2026 shows up on the return you file in spring 2027. One effective mid-year is usually blended. If you’re unsure, find the sentence that begins “effective” or “for tax years”, because that’s the one that matters. Someone filing a 2025 return in a quiet week in October, for example, needs the 2025 rules, even if the news today is about 2027.
When a change touches your refund, the tax refund calculator is a quick way to test it, and the result is a ballpark, not a promise.
The sources behind this page
The 12 March 2026 law and its measures come from a Department of Finance Canada news release. The underused housing tax dates come from CRA notices. The rate and bracket figures in the example are from 2026 federal tax data checked on 29 September 2026. 2026 benefit amounts couldn’t be confirmed on an official page, and provincial changes aren’t listed. This is an independent guide, separate from any government body.
Frequently asked questions
What was the biggest Canadian tax law change of 2026?
Bill C-4 received royal assent on 12 March 2026. It cuts the first federal rate from 15% to 14%, effective 1 July 2025.
How much does the lower first rate save?
Finance Canada says up to $420 per person. Our own arithmetic on 2026 data gives about $420.71 for someone above the first bracket.
Do I still file an underused housing tax return?
Not for 2025 or later, per the CRA. Returns for 2022 to 2024 still apply.
Is the capital gains inclusion rate going up?
The two-thirds proposal was cancelled by the Prime Minister's release of 21 March 2025. We couldn't find the 2026 rate on a CRA page, so confirm 50% on the CRA site.
Where can I follow tax news from the source?
The Department of Finance's tax policy page and the CRA's news pages, which offer an RSS feed.
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