What to expect in 2026: five important CRA updates
Each fall, the Canada Revenue Agency (CRA) outlines the updates that will shape taxpayers’ bills in the coming year. For 2026, Canadians should be aware of several notable changes that could affect retirement saving, personal taxes, and ways to file. Here are five key tax changes to watch, with practical guidance on how they might impact you and your family.
1) Higher RRSP contribution limit
The 2026 tax year brings an adjustment to the Registered Retirement Savings Plan (RRSP) contribution room. The limit for many Canadians will rise, providing an opportunity to bolster retirement savings on a tax-deferred basis. If you’re close to maximizing your RRSP contributions, the higher limit could allow you to catch up or accelerate savings without moving into a higher tax bracket prematurely.
What this means in practice: review your current RRSP strategy, consider contributing the new limit if you have unused room, and think about how the increase aligns with your retirement timeline. As always, contributions reduce your taxable income for the year they’re made, and investment growth within an RRSP is tax-sheltered until withdrawal.
2) Updated federal tax brackets and rates
The 2026 federal tax brackets and marginal rates are typically indexed to inflation. The result can be a shift in the amount of income taxed at higher rates for some earners. A modest bracket adjustment often means that more income falls into lower tax ranges, reducing the overall tax bite for certain income levels. For others, the impact could be more nuanced, depending on deductions, credits, and provincial taxes.
Action point: re-run your year‑end tax projections with the updated brackets. If you anticipate crossing a threshold, consider timing income, deductions, or RRSP contributions to optimize your effective tax rate for the year. A tax professional can help tailor strategies to your situation.
3) Changes to filing paper tax returns
The CRA has signaled further shifts away from paper filing for many individuals. While electronic filing remains the fastest and most reliable method, some taxpayers or specific situations may still involve paper returns. For 2026, there could be updates to submission rules, processing timelines, or a push to use digital channels to improve accuracy and speed up refunds.
Practical tip: if you’re accustomed to mailing in a paper return, verify current CRA guidance well before the deadline. Consider transitioning to NETFILE or EFILE for a smoother experience, and keep copies of any forms you file by paper, should you need documentation later.
4) Expanded or aligned non-refundable tax credits
Other notable changes often revolve around non-refundable tax credits, such as those linked to education, trying to help families with children, or supportive measures for seniors. In 2026, the CRA could adjust the amounts or eligibility rules for certain credits to reflect living costs and policy priorities. These credits reduce the amount of tax you owe but don’t create a refund on their own.
What to do: review which credits you qualify for and ensure you have documentation in place. If the credit values change, it may alter the net tax payable even if your income remains the same. A quick check-in with a tax professional can confirm you’re claiming all the credits you’re entitled to.
5) Health, education, and program-specific changes
Beyond the big-ticket items, 2026 often brings tweaks to government programs and allowances that affect families, students, or lower-income households. This can include adjustments to benefit amounts, income thresholds for support programs, or the way certain benefits are integrated into the tax system. While these changes may not affect every taxpayer, they can improve or constrain how much relief you receive on a net basis.
Action point: stay informed about provincial variations and federal program updates that intersect with your tax return. If you’re eligible for benefits or credits linked to family status, education, or disability, a proactive review can maximize benefits while keeping you compliant.
Practical steps to prepare for 2026
- Review your RRSP contributions and carry-forward room; plan to contribute where it makes sense for retirement planning.
- Recalculate your tax projections using the updated federal brackets and any provincial adjustments.
- Decide whether to file electronically or on paper and gather required documentation ahead of deadlines.
- Check eligibility for revised credits and keep records to support your claims.
- Stay connected with a tax professional for personalized planning and to navigate any policy changes.
By staying informed about these five key changes, you can optimize your tax position, maximize available credits, and ensure a smoother filing season in 2026.
