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The fiscal year in Canada depends on who is asking. The federal government runs April 1 to March 31. You, as an individual, file on the calendar year. A corporation picks its own year end, as long as the period is no longer than 53 weeks.
Which dates count as the fiscal year in Canada?
People mix these up because the government’s year and your tax year don’t line up. The government’s fiscal year starts on April 1 and ends on March 31, and the Public Accounts are closed off at that March date. That’s the budget and spending cycle, the thing the Finance Minister talks about each spring and the Public Accounts report on once the year has closed. It has nothing to do with when your return is due, so you can ignore it.
Your personal tax year is the calendar year. So the 2025 return covers January 1 to December 31, 2025. A business that isn’t a corporation (a sole proprietor, say) normally does the same. The CRA lets some self-employed people report on a different fiscal period by filing Form T1139, but that’s a special case with its own strings attached, so read the CRA’s page on fiscal periods before you try it.
A corporation is where the choice is real. Its tax year is its fiscal period, and the CRA says it can’t run longer than 53 weeks, or 371 days. The first year starts on the date of incorporation. After that, each year starts the day after the last one ended.
| Who | Fiscal or tax year | What sets it |
|---|---|---|
| Federal government | April 1 to March 31 | Government budgeting and the Public Accounts |
| Individual | January 1 to December 31 | Calendar year |
| Corporation | Any year end, up to 53 weeks | Chosen when the company starts |
| Professional corporation in a partnership | December 31 year end | Special rule in the CRA’s guidance |
What due dates follow from your year end?
For individuals, the 2025 return was due on April 30, 2026, unless you or your spouse had self-employment income. In that case the filing date moved to June 15, 2026. The payment date did not move. Any balance owing for 2025 still had to be in by April 30, 2026, or interest started.
The 2026 dates haven’t been published yet. Use the 2025 pattern as a guide, and check the CRA’s due dates page once the new ones go up before you put anything in a calendar. The site’s tax calendar collects the usual filing, instalment and RRSP dates in one place.
A corporation files its T2 return within six months of the end of its tax year, and the CRA says that rule applies to every corporation, even an inactive one with no tax payable. With a December 31 year end that means June 30. With an August 31 year end it means the last day of February. The tax itself comes due sooner. Generally the balance is due two months after year end, or three months for a Canadian-controlled private corporation that claims the small business deduction and meets the other conditions on the CRA’s page on when to file. That gap catches people out. A December 31 company can file in June and still owe its tax by the end of February or March.
Why would a company choose a year end other than December?
Usually because December is either the busiest month or the quietest, and closing the books in the middle of a rush, with staff away and suppliers sending year end invoices, is a chore nobody needs. A roofer might close in the dead of winter. A retailer might avoid closing in January, when inventory counts are a mess.
There’s a second reason people mention, which is deferring tax, but that is a planning matter and the rules around it (owner pay, associated companies, the shareholder’s own calendar-year return) are tangled. Don’t pick a year end for that reason alone. It’s a poor reason.
Once it’s set, changing it needs care. The CRA’s guidance says most corporations have to write to the tax services office and ask for approval. There are exceptions, such as a wind-up or a change of control, but the default is to ask first.
A worked example with real dates
Say a new company incorporates on March 10 and wants an August 31 year end. Its first tax year runs March 10 to August 31, which is well under 53 weeks. That’s short. Its T2 is then due on the last day of the sixth month after that, which is February 28 (or 29 in a leap year).
The tax balance is due earlier. Two months after August 31 is October 31, and three months is November 30 for a company that qualifies for the longer window. Mark both dates, because the filing date is months later and it’s easy to relax too soon.
The owner, meanwhile, files a personal return on the calendar year. If she pays herself a salary, the employer side of CPP and EI follows the calendar year too. Try the payroll remittance calculator to see what a pay period costs the company, and the payroll deductions calculator for what comes off the employee’s cheque.
If the company has profit, the corporate tax calculator gives a rough combined rate. It assumes a calendar 2026 year, so a company with another year end can land on a different figure when provincial rates change mid-year.
Does a short first year still need a return?
Yes. The first year can be a few weeks long, and a quiet company that sold nothing still has to file a T2 for it. The CRA’s rule is that all corporations, including inactive ones, file for every tax year even when there’s no tax payable. A missing return costs more than the few hours it takes to file a blank one.
Common mistakes with the fiscal year
Here’s where people slip.
The biggest one is assuming April 1 matters to you. It doesn’t. Unless you work for the government or a body that follows its cycle. Your RRSP, TFSA and tax return all run on other dates.
The next is treating the filing date and the payment date as one. They’re separate for self-employed people, and they’re separate for corporations. Miss the payment date and interest runs. Even if you file on time.
And some people change a year end casually, on a phone call or an email to the accountant, without the approval the CRA expects. Ask first, and keep the approval in the minute book. If you want to see how your income is taxed in a normal calendar year, the income tax calculator does that for any province.
Our sources
The government year comes from Public Services and Procurement Canada and the Treasury Board Secretariat. The 53-week limit, the first-year rule and the approval to change a year end are from the CRA page on determining a corporation’s tax year. The six-month filing rule and the payment dates are from the CRA’s T2 guidance. The 2025 personal filing dates are from the CRA’s important dates pages, read in October 2026.
Frequently asked questions
What is the fiscal year in Canada?
For the federal government it is April 1 to March 31. For individuals the tax year is the calendar year, and a corporation picks its own year end.
Does my tax return follow the April 1 fiscal year?
No. Your personal return covers January 1 to December 31. The 2025 return was due April 30, 2026, or June 15, 2026 for self-employed people, with payment still due April 30.
How long can a corporation's fiscal year be?
Up to 53 weeks (371 days). A new company's first year starts on the date it is incorporated.
When is the corporate tax return due?
Within six months of the year end. A December 31 year end gives a June 30 filing date. The payment date is different, so check the CRA page for your type of corporation.
Can a company change its year end?
Usually only with the CRA's approval, asked for by letter to the tax services office. A few situations, such as a wind-up or a change of control, have their own rules.
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