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One’s 71^st birthday is a very consequential event when it comes to retirement planning for Canadian taxpayers, and it’s an event which will be experienced by hundreds of thousands of Canadians during 2026.

One’s 71^st birthday is a very consequential event when it comes to retirement planning for Canadian taxpayers, and it’s an event which will be experienced by hundreds of thousands of Canadians during 2026.  

While saving for retirement through an employer-sponsored pension plan used to be the “norm”, that hasn’t been the reality for most working Canadians for some time. Most Canadians, certainly those who work in the private sector, have for decades been saving for retirement through contributions to a registered retirement savings plan (RRSP). And, regardless of the amount saved or whether the planholder is retired, partly retired, or still in the full-time work force, every RRSP holder who reaches the age of 71 this year will be required, by the end of 2026, to make a decision on how to structure and invest their retirement income funds for the remainder of their lives.

The need to make that decision arises from the rule that all taxpayers who hold funds within an RRSP are required to collapse that RRSP by the end of the calendar year in which they turn 71 years of age – no exceptions, and no extensions. It’s a hugely consequential decision, as the course of action chosen will affect the individual’s income for the remainder of their life and, in some cases, actions taken cannot be undone.

While the actual decision is a complex one, there are actually only three options available to a taxpayer who must collapse an RRSP. They are as follows:

• collapse the RRSP and include all of the proceeds in income for that year;
• collapse the RRSP and transfer all proceeds to a registered retirement income fund (RRIF); and/or
• collapse the RRSP and purchase an annuity with the proceeds. 

It’s not hard to see that the first option doesn’t have much to recommend it. Collapsing an RRSP without transferring the balance to a RRIF or using that amount to purchase an annuity means that every dollar in the RRSP will be treated as taxable income for that year. In some cases, where a substantial six figure amount has been saved in the RRSP, that can mean losing nearly half of the RRSP proceeds to income tax.  And, while any balance of proceeds left can then be invested, tax will be payable on all investment income subsequently earned.

As a practical matter, then, the choices come down to two: a RRIF or an annuity. And, as is the case with most tax and financial planning decisions, the best choice will be driven by one’s personal financial and family circumstances, risk tolerance, cost of living, and the availability of other sources of income to meet such living costs.

The annuity route has the great advantages of simplicity and certainty. In exchange for a lump sum amount paid by the taxpayer, the annuity issuer agrees to pay that taxpayer a specific sum of money, usually once a month, for the remainder of their life. Annuities can also provide a guarantee period, in which the annuity payments continue for a specified time period (five years, 10 years) even if the taxpayer dies during that time. Finally, annuities can be set up as joint annuities, in which annuity payments will continue until the death of the last annuitant – such joint annuities are most often purchased by spouses. Regardless of how the annuity is structured, the amount of monthly income which can be received is determined by the amount used to purchase the annuity, the gender and, especially, the age of the annuity purchaser(s), and the prevailing interest rates at the time the annuity is purchased.

For taxpayers whose primary objective is to obtain a guaranteed life-long income stream without the responsibility of making any investment decisions or the need to take any investment risk, an annuity can be an attractive option. There are, however, some potential downsides to be considered. First, an annuity arrangement can never be reversed. Once the taxpayer has signed the annuity contract and transferred the funds, they are locked into that annuity arrangement for the remainder of their life, regardless of any change in circumstances that might mean an annuity is no longer suitable. Second, unless the annuity contract includes a guarantee period, there is no way of knowing how many payments the taxpayer will receive. If they die within a short period of time after the annuity is put in place, there is usually no refund of amounts invested – once the initial transfer is made at the time the annuity is purchased, all funds transferred belong to the annuity company. Third, most annuity payment schedules do not keep up with inflation – while it is possible to obtain an annuity in which payments are indexed, having that feature will mean a substantially lower monthly payout amount. Finally, where the amount paid to obtain the annuity represents most or all of the taxpayer’s assets, entering into the annuity arrangement means that the taxpayer will not be leaving an estate for their heirs.

The second option open to taxpayers is to collapse the RRSP and transfer the entire balance to a registered retirement income fund, or RRIF. A RRIF operates in much the same way as an RRSP, with two major differences. First, it’s not possible to contribute funds to a RRIF. Second, the taxpayer is required to withdraw an amount from their RRIF (and to pay tax on that amount) each year. That minimum withdrawal amount is a percentage of the outstanding balance, with that percentage figure determined by the taxpayer’s age at the beginning of the year. For RRIF holders who are 71 at the start of the year, the required withdrawal percentage is 5.28% – and it increases in each subsequent year. While the taxpayer can always withdraw more in a year (and pay tax on that withdrawal), they cannot withdraw less than the minimum required withdrawal for their age group.

Where a taxpayer holds savings in a RRIF, they can invest those funds in the same investment vehicles that were used while the funds were held in an RRSP. And, as with an RRSP, investment income earned by funds held inside a RRIF are not taxed as they are earned. While the ability to continue holding investments that can grow on a tax-sheltered basis provides the taxpayer with a lot of flexibility, that flexibility has a price in the form of investment risk. As is the case with all investments, investments held within a RRIF can increase in value – or decrease – and the taxpayer carries the entire investment risk. When things go the way every investor wants them to, investment income is earned while the taxpayer’s underlying capital is maintained, but that result is never guaranteed.

On the death of a RRIF annuitant, any funds remaining in the RRIF can be transferred to a RRIF of the surviving spouse without payment of tax. Where there is no surviving spouse, the balance of funds in the RRIF will be treated, for tax purposes, as income to the RRIF annuitant in the year of death, and must be reported as income on the tax return for that year.

While the above discussion of RRIFs versus annuities focuses on the benefits and downsides of each, it’s not necessary, and in many cases not advisable, to limit the options to an either/or choice. It is possible to structure a retirement income plan to provide, to some extent, for both the seemingly irreconcilable goals of lifetime income security and capital (and estate) growth. Combining the two alternatives – annuity and RRIF – either now or in the future can go a long way toward satisfying both objectives.

For everyone, whether in retirement or not, spending is a combination of non-discretionary and discretionary items. The first category is made up mostly of expenditures for income tax, housing (whether rent or the costs of owing a house – even where the mortgage has been paid off, costs like property taxes and utilities must still be paid), food, insurance costs, and (especially for older Canadians) the cost of out-of-pocket medical expenses. The second category, that of discretionary expenses, includes entertainment, travel, and the cost of any hobbies or interests pursued. A strategy which utilizes a portion of RRSP savings to create a secure lifelong income stream to cover non-discretionary costs can help to remove the worry of outliving one’s money, while the balance of savings can be invested for growth and to provide the income to be used for non-discretionary spending.

Such a secure income stream to cover non-discretionary expenses can, of course, be created by the purchase of an annuity. As well, although most taxpayers don’t think of them in that way, the Canada Pension Plan and Old Age Security program have many of the attributes of an annuity, with the added benefit that both are indexed to inflation. By age 71, all taxpayers who are eligible for CPP and OAS will have begun receiving those monthly benefits. Consequently, in making the RRIF/annuity decision at that age, taxpayers should include in their calculations the extent to which CPP and OAS benefits will pay for their non-discretionary living costs.

As of July 2026, the maximum OAS benefit for most Canadians (specifically, those who have lived in Canada for at least 40 years after the age of 18) is about $752 ($827 for those aged 75 and older) per month. The amount of CPP benefits receivable by the taxpayer will vary depending on their work and contribution history, but for 2026, the maximum CPP retirement benefit which can be received at age 65 is $1,508. As a result, a single taxpayer who receives maximum CPP and OAS benefits at age 65 will have $27,120 in annual income ($2,260 per month). And, for a married couple, of course, the total annual income received from CPP and OAS can be about $54,240 annually, or $4,520 per month. While $27,000 a year isn’t usually enough to provide a comfortable retirement, for those who go into retirement in reasonable financial shape – meaning, generally, without any debt – it can go a long way toward meeting non-discretionary living costs. In other words, most Canadians who are facing the annuity versus RRIF decision already have a source of income which is both guaranteed for their lifetime and is indexed to inflation. Taxpayers who are considering the purchase of an annuity to create the income stream required to cover non-discretionary expenses should first determine how much of those expenses can already be met by the combination of their (and their spouse’s) CPP and OAS benefits. The amount of any needed annuity purchase can then be set to cover off any shortfall.

While the options available to a taxpayer at age 71 with respect to the structuring of future retirement income are relatively straightforward, the number of factors to be considered in assessing those options and making that decision are not. All of that makes for a situation in which getting independent professional financial advice on the right mix of choices and investments is a very good strategy.

By the time summer arrives, nearly all Canadians have filed their income tax returns for the previous year, have received a Notice of Assessment from the tax authorities with respect to that return, and have either spent their tax refund or, more grudgingly, paid any balance of tax owing.

By the time summer arrives, nearly all Canadians have filed their income tax returns for the previous year, have received a Notice of Assessment from the tax authorities with respect to that return, and have either spent their tax refund or, more grudgingly, paid any balance of tax owing.

It’s a surprise, therefore, when unexpected mail arrives from the Canada Revenue Agency (usually in late July or early August), and the information in that mail will likely be both unfamiliar and unwelcome. Specifically, the enclosed Instalment Reminder form will advise the recipient that they are advised to make instalment payments of income tax on September 15 and December 15 of 2026 – and will helpfully identify the amounts which should be paid on each date.

No one particularly likes receiving unexpected mail from the tax authorities, and correspondence which suggests that the recipient should be making payments of income tax for 2026 to the CRA during the year (instead of when they file the return for 2026 in April 2027) is likely to be both perplexing and somewhat alarming. It’s fair to say that most Canadians aren’t familiar with the payment of income tax by instalment payments, and are therefore at a loss to know how to proceed the first time they receive an Instalment Reminder.

The reason that the instalment payment system is unfamiliar to most Canadians is that most of us pay income taxes during our working lives through a different system. Every Canadian employee has tax automatically deducted from their paycheque (“at source”), before that paycheque is issued, and that tax is remitted by the employer to the CRA on the employee’s behalf. Such deductions and remittances accrue to the employee’s benefit, and they are credited with those remittances when filing the annual tax return for that year. It’s an efficient system, but it’s also one which is largely invisible to the employee, and certainly one which operates without the need for the employee to take any steps on their own.

Where an individual is no longer an employee – for instance, they start a business and becomes self-employed, or retire and begins to receive retirement income from various government and non-government sources – such deductions and remittances are no longer automatically made. However, Canadian tax rules provide that, where the amount of tax owed when a return is filed by the taxpayer is more than $3,000 ($1,800 for Québec residents) in the current (2026) year and either of the two previous (2024 or 2025) years, that taxpayer may be subject to the requirement to pay income tax by instalments.

The reason that first instalment reminders are issued in late July or early August has to do with the schedule on which Canadians file their tax returns. The amount of tax payable on filing for the immediately preceding year can’t be known until the tax return for that year has been filed and assessed, and the tax return filing deadline for individuals is April 30 (or June 15 for self-employed taxpayers and their spouses). Consequently, by the end of June, the CRA will have the information needed to determine whether a particular taxpayer should receive a first instalment reminder for the current year

Taxpayers who receive that first Instalment Reminder in July may also be puzzled by the fact that it is a “Reminder” and not a “Requirement” to pay. The reason for that is that those who receive it are not actually required by law to make instalment payments of tax. There are, in fact, three options open to the taxpayer who receives an Instalment Reminder.

First, the taxpayer can pay the amounts specified on the Reminder, by the respective due dates of September 15 and December 15. A taxpayer who does so can be certain that they will not have to pay any interest or penalty charges even if they do have to pay an additional amount on filing in the spring of 2027. If the instalments paid turn out to be more than the taxpayer’s tax liability for 2026, they will of course receive a refund on filing.

Second, the taxpayer can make instalment payments based on the total amount of tax which was owed and paid for the 2025 tax year (including any balance that was owed on filing). If a taxpayer’s income has not changed between 2025 and 2026 and their available deductions and credits remain the same, the likelihood is that total tax liability for 2026 will be slightly less than it was in 2025, owing to the indexation of tax brackets and tax credit amounts, as well as a slight reduction in federal individual income tax rates for 2026.

Third, the taxpayer can estimate the amount of tax which they will actually owe for  2026 and can pay instalments based on that estimate. Where a taxpayer’s income has dropped from 2025 to 2026 and there will consequently be a reduction in tax payable, this option may be worth considering. Taxpayers who wish to pursue this approach can obtain the information needed to estimate current year taxes (federal and provincial tax brackets and rates) on the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html#federal.

Where taxpayers choose to use option 2 or 3 rather than paying the amounts set out in the Instalment Reminder, they should be aware that the total amount to be paid is not divided equally between the September and December instalment payments. Rather, 75% of the total instalment amount for 2026 should be paid in the September instalment and the remaining 25% paid in the December instalment payment.

All of this may seem like a lot of research and calculation effort, especially when one considers that many Canadians don’t even prepare their own tax returns. And those who don’t want to be bothered with the intricacies of tax calculations can pay the amounts set out in the Instalment Reminder, secure in the knowledge that they will not incur any penalty or interest charges and that, should those amounts ultimately represent an overpayment of taxes, that overpayment will be refunded when the return for 2026 is filed next spring.

Once they have resigned themselves to the realities of the tax instalment system, the next question that most taxpayers have is how such payments can be made. The options open to taxpayers in that regard are helpfully outlined on the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments/you-pay-your-instalments.html.

By the time summer arrives, the deadline for filing an individual income tax return for the previous year has come and gone for all individual Canadians. The majority of taxpayers were required to file that return for 2025 on or before April 30, 2026, while self-employed individuals (and their spouses) had until June 15, 2026 to complete that filing obligation. And, given the time frame during which the Canada Revenue Agency processes such returns and issues a Notice of Assessment, it’s likely that most if not all of those taxpayers have received their Notice of Assessment and concluded that their  annual filing and payment obligations are done and behind them for another year.

By the time summer arrives, the deadline for filing an individual income tax return for the previous year has come and gone for all individual Canadians. The majority of taxpayers were required to file that return for 2025 on or before April 30, 2026, while self-employed individuals (and their spouses) had until June 15, 2026 to complete that filing obligation. And, given the time frame during which the Canada Revenue Agency processes such returns and issues a Notice of Assessment, it’s likely that most if not all of those taxpayers have received their Notice of Assessment and concluded that their  annual filing and payment obligations are done and behind them for another year.

For most taxpayers it is therefore surprising to receive a communication from the CRA in mid-summer, and more than a little unsettling to find out that the Agency has some further questions about the tax return that the taxpayer thought was already completed. Notwithstanding, that’s an experience that millions of taxpayers will have over the next few weeks and months.

Between February 6th and June 14 of this year, the Canada Revenue Agency received and processed just under 32 million individual income tax returns filed for the 2025 tax year, and issued a Notice of Assessment in respect of each one of those returns. The sheer volume of returns and the processing turnaround timelines mean that the CRA does not (and could not possibly) do a manual review of the information provided in a return prior to issuing the Notice of Assessment. Rather, returns are scanned by the Agency’s computer system and a Notice of Assessment is then issued.

In addition, the CRA has, for many years, been successful in encouraging taxpayers to fulfill their filing obligations online, through one of the Agency’s electronic filing services. This year, just under 30 million (or 93%) of individual returns for 2025 were filed by electronic means. While e-filing means that the turnaround for processing of returns is much quicker, there is, by definition, no “paper trail” involved.

The Canadian tax system has always been what is termed a “self-assessing” system, in which taxpayers report income earned and claim deductions and credits to which they believe they are entitled. Prior to the advent of e-filing there were means by which the CRA could easily verify claims made by taxpayers. Where returns were paper-filed, taxpayers were usually required to include receipts or other documentation to prove their claims, whatever those claims were for. For the 94% of returns which were filed this year by electronic means, no such paper trail exists. Consequently, the potential exists for misrepresentation of such claims (or simple reporting errors) on a large scale.

The CRA’s response to that risk is to conduct a wide range of review programs (there are, in fact, no fewer than eight separate tax return review programs utilized by the Agency), to ensure that information reported on each return was accurate and claims made for deductions and credits were justified. Some review programs are carried out before a Notice of Assessment is issued for the taxpayer’s return, and others after that Notice of Assessment has been issued and sent to the taxpayer. Regardless of the timing and the review program under which the review is carried out, in all cases the purpose of the review is to ensure that income amounts reported are complete and accurate and that deduction and tax credit claims made on the return can be verified by receipts or other documentation.

Being selected for review under any of the CRA’s review programs means, for the individual taxpayer, the possibility of receiving unexpected correspondence, or a telephone call, from the CRA. Receiving such correspondence or such a call from the tax authorities is almost guaranteed to worry the recipient taxpayer, who may immediately conclude that they have done something very wrong and are facing a big tax bill. However, in the vast majority of cases, the contact is just a routine part of the Agency’s processing review mandate.

Where the initial contact from the CRA to the taxpayer is done by telephone, it’s important that the taxpayer verify the identity of the person claiming to be a representative of the Agency. As virtually everyone knows by now, fraudulent or “scam” calls purporting to be from the CRA have become commonplace. To assist taxpayers in confirming that any telephone contact received is a legitimate one, the CRA has provided information on how to respond to such a call, and that information can be found on the CRA website at Verify it's the CRA calling - Scams and fraud - CRA - Canada.ca.

Most taxpayers, of course, are not concerned so much with the kind of program or programs under which they are contacted as they are with why their return was singled out for review or follow-up, and there are a number of reasons why that might have occurred.

One of the review programs administered by the CRA is the “Matching Program”, in which information reported on the taxpayer’s return (both income and deductions) is compared to information provided to the CRA by third-party sources (like T4s filed by employers or T5s filed by banks or other financial institutions). Where information provided by such a third party does not agree with the figures reported by the taxpayer on their return, the CRA is likely to want an explanation of the discrepancy.

As well, Canada’s tax laws are complex and, over the years, there are areas in which the CRA has determined that taxpayers are more likely to make errors on their return. Consequently, a return which includes claims in those areas (like dependant tax credit claims and claims for medical expenses, moving expenses, or tuition tax credits) may have an increased chance of being reviewed. Where there are deductions or credits claimed by the taxpayer which are significantly different or greater than those claimed in previous returns, that may attract the CRA’s attention. And, if the taxpayer’s return has been reviewed in previous years and, especially if an adjustment was made following that review, subsequent reviews may be more likely. Finally, many returns are picked for the processing review programs simply on the basis of random selection.  

Regardless of the reason for the follow-up, the process is the same. Taxpayers whose returns are selected for review will be contacted by the CRA, usually by letter, identifying the deduction or credit for which the CRA wants documentation or the income or deduction amount about which a discrepancy seems to exist. The taxpayer will be given a reasonable period of time – usually a few weeks from the date of the letter – in which to respond to the CRA’s request. That response should be in writing, attaching, if needed, the receipts or other documentation which the CRA has requested. All correspondence from the CRA under its review programs will include a reference number, which is usually found in the top right-hand corner of the CRA’s letter. That number is the means by which the CRA tracks the particular inquiry, and should be included in the response sent to the Agency. It’s important to remember, as well, that it’s the taxpayer’s responsibility to provide proof, where requested, of any claims made on a return. Where a taxpayer does not respond to a CRA request or does not provide such proof, the Agency will proceed on the basis that the requested verification or proof does not exist and will assess or reassess accordingly.

Taxpayers who have registered for the CRA’s online tax program My Account (or whose representative is similarly registered for the Agency’s Represent a Client online service) can usually submit required documentation electronically. More information on how to do so can be found on the CRA website at Submitting documents online – Pre-assessment Review, Processing Review, Request Verification and Matching Programs - Canada.ca.

Whatever the reason a particular return was selected for review by the CRA, one thing is certain. A prompt response to the CRA’s enquiry, providing the Agency with the information or documentation requested, will, in the vast majority of cases, bring the matter to a speedy conclusion, to the satisfaction of both the Agency and the taxpayer. Detailed information on the return review process can be found on the CRA website at Review of your tax return by the CRA - Canada.ca.

While the Canadian housing market overall is down significantly from its peak in early 2022, houses continue to be bought and sold, and each such purchase and sale means a move for multiple households. The downturn in residential real estate prices has, in some instances, allowed first-time homebuyers to get into the market sooner than they might have expected. In other cases, however, it has meant that current homeowners who purchased during the pandemic, when prices were higher and interest rates were at historic lows, are finding the carrying costs for their mortgage at renewal to be unsustainable. In such cases, a sale of the house can be their best (or only) option. And, finally, every spring university students make the semi-annual trek from their university residences or apartments back to the family home for the summer, and then back to school again.

While the Canadian housing market overall is down significantly from its peak in early 2022, houses continue to be bought and sold, and each such purchase and sale means a move for multiple households. The downturn in residential real estate prices has, in some instances, allowed first-time homebuyers to get into the market sooner than they might have expected. In other cases, however, it has meant that current homeowners who purchased during the pandemic, when prices were higher and interest rates were at historic lows, are finding the carrying costs for their mortgage at renewal to be unsustainable. In such cases, a sale of the house can be their best (or only) option. And, finally, every spring university students make the semi-annual trek from their university residences or apartments back to the family home for the summer, and then back to school again.

No matter the reasons or circumstances for the move or the distance to the new location, all moves have two things in common – stress and cost. Even where the move is a desired one, moving inevitably means upheaval of one’s life, and the costs involved can be very significant. There is not much that can diminish the stress of moving, but the associated costs can be offset somewhat by a tax deduction which may be claimed for many of those costs.

While it’s common to the refer to the “moving expense deduction” as though it were available to all taxpayers in all circumstances, the fact is that there is actually no universally available deduction claimable for moving costs – in order to be tax deductible, such moving costs must meet specific criteria. Our tax system allows taxpayers to claim a deduction only where the move is made to get the taxpayer closer to their new place of work, whether that work is a transfer within the same company, a change in employers, or moving to run a business at the new location. Specifically, moving expenses can be deducted where the move is made to bring the taxpayer at least 40 kilometres closer to their new place of work. That requirement is satisfied where, for instance, a taxpayer moves from Halifax to Toronto to take that new job. It’s also met where a taxpayer is transferred by their employer to another job in a different location and the taxpayer’s move will bring them at least 40 kilometres closer to the new work location. It’s not met where an individual or family move up the property ladder by selling and purchasing a new home in the same town or city.

As well, it’s not actually necessary to be a homeowner in order to claim moving expenses. The list of moving-related expenses which may be deducted is basically the same for everyone – homeowner or tenant – who meets the 40-kilometre requirement. Students who move to take a summer job (even if that move is back to the family home) can also make a claim for moving expenses incurred where the overriding 40-kilometre requirement is met.

It's important to remember, however, that even where the 40-kilometre requirement is met, moving costs can be deducted only from income earned from employment or self-employment (business) – such costs cannot be deducted from other types of income, like investment income or employment insurance benefits.

The general rule is that a taxpayer can claim reasonable amounts that were paid for moving themself, family members, and household effects. In all cases, moving expenses can only be deducted from employment or self-employment income earned at the new location. Where the move takes place later in the year, and moving costs are significant, it’s possible that the amount of income earned at the new location in the year of the move will be less than deductible moving expenses incurred. In such instances, those expenses can be carried over and deducted from income earned at the new location in any future year.

Within the general rule, there are a number of specific inclusions, exclusions, and limitations. The following is a list of expenses which can be claimed by the taxpayer without specific dollar figure restrictions (but subject, as always, to the overriding requirement of “reasonableness”).

• travel expenses, including vehicle expenses, meals, and accommodation, to move the taxpayer and members of their household to their new residence (note that not all members of the household have to travel together or at the same time);
• transportation and storage costs (such as packing, hauling, movers, in-transit storage, and insurance) for household effects, including such items as boats and trailers;
• costs for up to 15 days for meals and temporary accommodation near the old or new residences for the taxpayer and members of the household;
• lease cancellation charges (but not rent) on the old residence;
• legal or notary fees incurred for the purchase of the new residence, together with any taxes paid for the transfer or registration of title to the new residence (excluding GST or HST); 
• the cost of selling the old residence, including advertising, notary or legal fees, real estate commissions, and any mortgage penalties paid when a mortgage is paid off before maturity; and
• the cost of changing an address on legal documents, replacing driving licences and non-commercial vehicle permits (not including insurance), and costs related to utility hook-ups and disconnections.

In a sellers’ real estate market, houses can sell almost as soon as they are put on the market. That’s not usually case right now, when it can take weeks or even months to find a buyer. When those are the circumstances, the homeowner might have to move to start that new job before the “old” house has sold. In that case, the taxpayer is entitled to deduct up to $5,000 in costs incurred for the maintenance of the old residence while it is vacant and on the market. Specifically, costs including interest, property taxes, insurance premiums, and heat and utilities expenses paid to maintain the old residence while it is vacant and efforts are being made to sell it may be deducted. If any family members are still living at the old residence, or it is being rented, no such deduction is available.

It may seem from the forgoing that virtually all moving-related costs will be deductible – however, there are some costs for which the Canada Revenue Agency (CRA) will not permit a deduction to be claimed, as follows:

• expenses for work done to make the old residence more saleable;
• any loss incurred on the sale of the old residence;
• expenses for job-hunting or house-hunting trips to another city (for example, costs to travel to job interviews or meet with real estate agents);
• expenses incurred to clean or repair a rental residence to meet the landlord’s standards;
• costs to replace such personal-use items as drapery and carpets;
• mail forwarding costs; and
• mortgage default insurance.

To claim a deduction for any eligible costs incurred, supporting receipts must be obtained. While the receipts do not have to be filed with the return on which the related deduction is claimed, they must be kept in case the CRA wants to review them.

Anyone who has ever moved knows that there are an endless number of details to be dealt with. For some types of costs, the administrative burden of keeping track of (and retaining receipts for) such moving-related expenses can be minimized by choosing instead to claim a standardized amount. Specifically, the CRA allows taxpayers to claim a fixed amount, without the need for detailed receipts, for travel and meal expenses related to a move. Using that standardized, or flat rate, method, taxpayers may claim up to $23 per meal, to a maximum of $69 per day, for each person in the household. Similarly, the taxpayer can claim a set per-kilometre amount for kilometres driven in connection with the move; the per-kilometre amount ranges from 55.5 cents for Saskatchewan to 70.5 cents for the Yukon. In all cases, it is the province or territory in which the travel begins which determines the applicable rate.

These standardized travel and meal expense rates are those which were in effect for the 2025 taxation year – the CRA will be posting the rates for 2026 on its website early in 2027, in time for the tax filing season.

Once eligibility for the moving expense deduction is established, the rules which govern the calculation of the available deduction are not complex, but they are very detailed. The best summary of those rules is found on the form used to claim such expenses – the T1-M. The current version of that form can be found on the CRA’s website at T1-M Moving Expenses Deduction - Canada.ca, and more information (including links to rates for standardized meal and travel cost claims) is available at Line 21900 – Moving expenses - Canada.ca.

Most Canadians are likely of the view, having just gone through the process of pulling together various sources of information on income and deductions and having dutifully prepared and filed an income tax return for the 2025 tax year, that they can happily put the subject of income taxes to one side for the next several months.

Most Canadians are likely of the view, having just gone through the process of pulling together various sources of information on income and deductions and having dutifully prepared and filed an income tax return for the 2025 tax year, that they can happily put the subject of income taxes to one side for the next several months.

While that’s no doubt a welcome thought, the fact is that it’s not too early to start planning with respect to 2026 income taxes: to the contrary, the earlier such planning starts, the better the outcome is likely to be.

By this point, about halfway through the tax year, most Canadians have a fairly accurate idea of how much their income for 2026 will be and know, in a general way, the kinds of deductions and credits which they will be able to claim on their return. As well, since the income earned and deductions claimed by most Canadians doesn’t vary greatly from year to year, the results obtained when the return for 2025 was assessed by the Canada Revenue Agency are quite likely to be similar to those that will follow from the filing of the 2026 return next spring.

Doing a mid-year review, instead of waiting until December (or worse, until tax filing time next spring) gives the taxpayer the chance to put into place any adjustments needed to help ensure that there are no unpleasant tax surprises when the return for 2026 is filed next spring. And, while the deadline for implementing most tax saving strategies may be December 31, it’s also the case that opportunities to make a significant difference to one’s current-year tax situation diminishes as the calendar year progresses

The results which followed the filing of the 2025 return can, in fact, alert the taxpayer to the need to pay more attention to their tax situation for 2026.  Most taxpayers hope for (and in fact do receive) a refund while others are disappointed to find out that they owe additional taxes and therefore have a tax bill (on which interest may be accumulating) to pay. While the taxpayer’s reaction to those two situations may be very different, the reality is that both such outcomes signal a need to address tax planning issues for 2026.

Where there is a tax balance owing on filing, it signals that taxes were underpaid throughout the year, and the taxpayer is required to make up that shortfall by remitting additional tax amounts owed to the CRA. Conversely, getting a tax refund is often viewed by taxpayers as receiving “free” money. That’s not the case. Where the taxpayer receives a refund, it usually means that taxes were overpaid throughout the year, thereby providing the federal government with an interest-free loan of the taxpayer’s money. All taxpayers pay income tax throughout the year, and when that system works as it should, the amounts paid accurately reflect the taxpayer’s tax liability for the year, and so there is neither a significant tax amount owed or a significant tax refund received on filing. Carrying out a mid-year review of one’s tax situation for 2026 can help ensure that result when the return for 2026 is filed with the CRA next spring.

The first step in doing that review is figuring out how much one’s tax bill for 2026 is likely to be. Where income amounts and available deductions and credits are very similar for 2025 and 2026, the amount of tax owed by the taxpayer for 2025 (a figure that can be found on Line 43500 of the Notice of Assessment) is likely to be very close to their tax liability for 2026.

Where income for 2026 is likely to be significantly greater or lower than that received in 2025 (for instance, where a taxpayer retired at the end of 2025), or the taxpayer will have significantly greater tax deduction or credit claims (for instance, a large RRSP contribution or much higher than usual medical expenses) for 2026, taxpayers can use tax return preparation software for the 2025 tax year to get an idea of how much tax will be payable for 2026. Although the tax brackets and tax credit amounts used by tax return preparation software for 2025 will differ from those in effect for 2026, those differences won’t make a significant difference to the total tax bill. If anything, using 2025 tax return software to calculate the tax bill for 2026 will result in a slight overestimate of that tax bill, owing to the indexation of tax brackets and credit amounts, as well as a decrease in the federal tax rate applied to the first income bracket for 2026.

After getting a sense of how much tax is likely to be payable for the 2026 tax year, the next step in doing a review is to determine how much income tax has already been paid to the CRA for 2026 (remembering that by this point in the year, approximately one-half of the tax bill for 2026 should already have been remitted to the CRA).

There are two ways of paying income taxes throughout the year. The majority of Canadians (including all employees) have income taxes deducted from their paycheques and remitted to the federal government on their behalf – a process known as source deductions. Taxpayers who do not have income tax deducted at source – which would include self-employed individuals and, frequently, retired taxpayers – make tax payments directly to the federal government (four times a year, in March, June, September, and December) through the tax instalment system.

Where the individual involved pays tax by instalments, the solution is simple. They can simply change the amount of remaining instalment payments to be made in 2026 so that the total instalment payments made over the course of this year accurately reflect the total tax payable for the year.

The situation is a little more complex for employees, or anyone who has tax deducted at source. Where a taxpayer finds that source deductions being made will not be sufficient to cover their tax liability for the year (meaning a tax bill to be paid next spring) the solution is to have those source deductions increased. No one likes paying more taxes, but where taxes are owed the only choice involved is to pay them now or pay them later. Spreading out that payment over the rest of the tax year is much less painful than being hit with a large tax bill (as well as interest charges when that tax bill can’t be paid in full and on time) when the return for the year is filed next spring.

Take, for example, an employee who, after filing the return for 2025, received a bill indicating that an additional $1,000 in taxes was owed. Assuming that their income and the amount of tax deducted from their paycheque doesn’t change, it’s likely that a similar amount will be owed when the return for 2026 is filed. If that taxpayer is paid biweekly, there will be about 13 paycheques between the end of June and the end of the year. Increasing the amount of tax deducted from those paycheques by about $75 per paycheque will mean that the $1,000 in taxes owing is paid to the Canada Revenue Agency by the end of the year – thereby avoiding that large tax bill when the return for 2026 is filed in the spring of 2027.

To increase the amount of tax deducted from their paycheque, the employee needs to obtain a TD1 form for 2026, which can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later.html. On the second page of the Form TD1, there is a section entitled “Additional tax to be deducted”, in which the employee can direct their employer to deduct additional amounts at source for income tax, and can specify the dollar amount which is to be deducted from each paycheque, on a go-forward basis.

No one particularly likes thinking about taxes, at any time of year, but ignoring the issue definitely won’t make it go away. The investment of a few hours of time now, and putting in place any needed adjustments, can mean greater peace of mind (and reducing the risk of facing a large tax bill) when the return for 2026 is completed and filed next spring.

It’s no secret that Canadian households have, over the past few months and years, been subjected to a series of financial and economic “hits” which have left many such households struggling to maintain their financial stability, or even to meet everyday expenses out of current income. In difficult financial times, individuals and families can and do adjust by cancelling discretionary expenses like an annual vacation, or postponing large expenditures like a new car or a bigger house. What has made the past few years so difficult is that the most significant cost increases have affected precisely the kinds of expenditures which are completely non-discretionary and cannot be deferred – specifically, the cost of food, shelter, and energy.

It’s no secret that Canadian households have, over the past few months and years, been subjected to a series of financial and economic “hits” which have left many such households struggling to maintain their financial stability, or even to meet everyday expenses out of current income. In difficult financial times, individuals and families can and do adjust by cancelling discretionary expenses like an annual vacation, or postponing large expenditures like a new car or a bigger house. What has made the past few years so difficult is that the most significant cost increases have affected precisely the kinds of expenditures which are completely non-discretionary and cannot be deferred – specifically, the cost of food, shelter, and energy.

A recent report by the Office of the Superintendent of Bankruptcy (available at Insolvency Statistics in Canada—First quarter of 2026) shows that many Canadian individuals and families have reached a point where meeting their regular financial obligations is no longer possible and they have declared personal bankruptcy. During the first quarter of 2026 (January to March), the number of personal bankruptcies in Canada rose by 8.5% when compared to the same quarter of 2025. More significantly, perhaps, is the fact that personal bankruptcies for the first quarter of 2026 are at their highest level since the same quarter in 2009 – during the 2008-09 financial crisis.

The significance of these numbers is two-fold. First, bankruptcy statistics are what is known as a “lagging indicator”, in that they represent a measure of conditions which have already occurred or are ongoing – in this case, the significant financial stress being experienced by Canadians. The fact that personal bankruptcies have increased to such a degree and that they are, by historical standards, at such a high level undoubtedly means that many other individuals and families are struggling to avoid having to take the same step.

It makes for a gloomy picture, but the fact is that a declaration of bankruptcy is the very last option to be used by individuals and families who can no longer meet their financial obligations. There are, in fact, many solutions and strategies available to individuals and families who are trying to cope with current economic conditions before a declaration of bankruptcy needs to be considered – and most of those solutions and strategies are available free of charge.

The best first step to be taken by individuals or families who are in financial difficulty is to seek out the services of a non-profit credit counselling agency. Almost every community of any size has a credit counselling agency which can assist individuals and families who are encountering such financial difficulties with strategies to help manage their situation. And, where such an agency does not exist locally, their services can usually be provided online.

Such credit counselling agencies operate on a not-for-profit basis and provide their services at little or no cost to individuals or families. Each such agency is a member of Credit Counselling Canada (to be a member of Credit Counselling Canada, an agency must be accredited and must operate only on a not-for-profit or charitable basis); a searchable listing of member agencies and their locations can be found on the Credit Counselling Canada website at https://creditcounsellingcanada.ca/locate-a-counsellor/?cc=ON. An outline of the kinds of services which are provided by such agencies is available on the same website at https://creditcounsellingcanada.ca/.

While these agencies are called credit counselling agencies, the services which they provide are much broader than the name implies. The services provided include helping clients to develop a realistic budget based on their current financial circumstances and providing advice on money management. In addition, where individuals and families are in financial difficulties, it is often the case that they take on additional debt to cope, and keeping up with that debt eventually becomes impossible, adding another layer of financial stress. Where clients are carrying unmanageable amounts of debt, credit counsellors can help to create a debt management plan (DMP). That DMP could include a voluntary agreement set up by a credit counsellor between an individual and their creditors. People who sign up for a DMP make one lump payment each month to the non-profit credit counselling agency, which then sends all of those funds directly to the individual’s creditors. In most cases, that agreement enables the individual or family to pay off debt over a longer period of time (thus improving cash flow and relieving some financial stress) and sometimes at a lower rate of interest.

It is sometimes the case that the financial circumstances of an individual or family are such that the steps which ultimately need to be taken are outside the ambit of a credit counselling agency – steps like a consumer proposal or bankruptcy. In those circumstances, the agency can provide a referral to a qualified professional in that field.

Where an individual or a family feels overwhelmed by financial stress, it’s inevitable that they will be vulnerable to approaches which promise to make their financial problems disappear. And, unfortunately, there are individuals and companies which are willing to take advantage of that vulnerability – for a fee.

The website of the Financial Consumer Agency of Canada (an agency of the federal government) at https://www.canada.ca/en/financial-consumer-agency/services/debt.html  and https://www.canada.ca/en/financial-consumer-agency/services/debt/debt-settlement-company.html contains a warning about using the services of such “debt settlement companies”, making the following points:

• Companies or agencies can’t guarantee they will solve your debt problems.
• Companies or agencies can’t quickly and easily fix your credit score.
• Companies should not (as they sometimes do) encourage you to take out a high-interest loan to pay off your debts.
• Companies and agencies may misrepresent services they offer as being part of a government program.

These warnings are based on the fact that debt settlement companies are for-profit businesses, not non-profit service providers. They collect fees from consumers who are in financial difficulty, sometimes making unrealistic commitments with respect to what they can accomplish. For instance, while such companies may promise to negotiate with creditors in order to reduce any amount owed, or the interest rate payable on existing debt, the fact is that creditors are not obliged to speak to or negotiate with a debt settlement company with respect to another person’s debts. Debt settlement companies may promise to “fix” a poor credit rating or credit report, but they have no actual power to do so. And the fees charged by such companies will almost certainly have to be paid, even when they don’t actually produce the results they promise.

Between February and May of 2026, just over 30 million individual income tax returns for the 2025 tax year were filed with the Canada Revenue Agency (CRA).  And, while each one of those returns was different with respect to income reported and deduction and credit claims made, the steps taken by the CRA after receiving each such return was the same. For each return filed, the CRA reviewed the income amounts reported and the tax deduction and credit claims made and then issued a Notice of Assessment (NOA) summarizing its conclusions with respect to the taxpayer’s tax situation for the year.

Between February and May of 2026, just over 30 million individual income tax returns for the 2025 tax year were filed with the Canada Revenue Agency (CRA).  And, while each one of those returns was different with respect to income reported and deduction and credit claims made, the steps taken by the CRA after receiving each such return was the same. For each return filed, the CRA reviewed the income amounts reported and the tax deduction and credit claims made and then issued a Notice of Assessment (NOA) summarizing its conclusions with respect to the taxpayer’s tax situation for the year.

When all goes well, the figures listed and the tax result obtained on that NOA will agree with the numbers submitted by the taxpayer on their return. In most cases (just over 17.5 million for the 2026 filing season), the filing of the return will result in a tax refund owed to the taxpayer, while for others there will be a tax balance owed.

Matters get more complicated where the CRA is not in agreement with the information provided or the claims made by the taxpayer in their return and, especially, where the CRA finds that additional tax must be paid by that taxpayer. When that happens, the taxpayer has to decide whether to dispute the decisions made by the CRA as outlined in the NOA for the year.

There are a lot of reasons why the CRA may disagree with the taxpayer, and in many cases disputing the CRA’s findings really doesn’t make sense. While the use of tax return preparation software has minimized both the risk of making a clerical or arithmetical error on the return and the possibility of the taxpayer claiming a tax credit to which they are not entitled, those errors can still occur.  And, where that has happened and the CRA correctly identifies the error, there’s really nothing to be gained by disputing their conclusions.

In many other cases, however, the taxpayer may genuinely feel that the conclusions reached by the CRA are simply incorrect. Our tax system is very complex, and the rules governing the circumstances in which a particular deduction or credit can be claimed are very detailed. In many cases, there can be a genuine question about whether, for instance, a business expense or an out-of-pocket medical cost can be claimed for tax purposes. Where the taxpayer believes that a claim made should have been allowed but was not, the next step to take is to find out why.

To do so, it’s best to contact the Agency directly for an explanation of their decision. Taxpayers can call the Individual Income Enquires line at 1-800-959-8281, where client services agents who have access to individual tax files can provide additional information about the Agency’s decision. Taxpayers who call that line should ensure that they have a copy of the NOA and/or their tax return for the year, as they will be required to provide information from that return (at a minimum, their name, social insurance number, address, and probably one or more figures from the return) before any confidential tax information can be discussed or disclosed.

Where the matter can’t be resolved to the taxpayer’s satisfaction by talking to the CRA, it’s then time to consider filing a formal dispute. Filing that dispute online through the CRA’s My Account service is, by far, the easiest way to do so. However, in order to use My Account, the taxpayer must be registered for that service.

At one time, registering for My Account was a fairly lengthy process, involving a wait for the CRA to send a security code to the taxpayer by regular mail, but changes to CRA procedures have streamlined that process. Essentially, a taxpayer who wants to register for My Account without waiting for a security code to be sent by mail needs to take a real-time picture of themself with an accepted government-issued photo identification document (for instance, a Canadian passport or driver’s licence). That photograph is then submitted online to verify the taxpayer’s identity and, once that is done, access to the taxpayer’s CRA accounts is available. Detailed information on the available options to become registered for My Account and the procedures to be followed can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services/register-cra-sign-in-services.html.

Taxpayers who are using My Account to file a Notice of Objection can do so by logging in online at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html. Once logged in, it’s necessary to click on the “File a formal dispute” from the listing on the left-hand side of the page. The taxpayer then provides information with respect to the assessment being disputed and the reasons why the assessment is being disputed and submits those reasons by clicking on the Submit button at the bottom of the "File a formal dispute” page. Taxpayers who are disputing their tax assessment through My Account can also scan and send supporting documents relating to that dispute to the Agency.

While filing a dispute through My Account is certainly faster than mailing (or faxing) a hard copy of the Notice of Objection, not all taxpayers want to use that option. Taxpayers who choose instead to file their objection using a hard copy of a Notice of Objection form can find the most current version of the CRA’s standardized T400A Objection on the Agency’s website at T400A Notice of Objection - Income Tax Act - Canada.ca.

Taxpayers aren’t obligated to use the CRA’s official Notice of Objection form – any written communication which makes it clear that the taxpayer is objecting to their Notice of Assessment will do. Nonetheless, there’s no reason not to use the standardized form, and there are benefits to doing so. Using the T400A form will make it clear to the CRA that a formal objection is being filed, will present the necessary information in a format with which the Agency is familiar, and will also mean that no required information is inadvertently omitted. It’s also helpful to include a copy of the Notice of Assessment which is being disputed. Taxpayers should also consider ensuring proof of both delivery and time of delivery by sending the form or letter to the Appeals Intake Centre in a way which provides for tracking and proof of delivery.

There is a single Appeals Intake Centre, and the mailing address for that Centre can be found on the CRA’s Notice of Objection form. A Notice of Objection can also be faxed to the Appeals Intake Centre, and the fax numbers for the Centre are available on the CRA website at File an objection – Income tax – Canada.ca. Finally, taxpayers can contact the CRA at its objection enquires phone line in order to get information about the status of their appeal; the toll-free telephone number for calls from within Canada to that line is 1-800-959-5513. Taxpayers who filed their objection through My Account can find out the status of their appeal by checking the “Progress Tracker” feature on that service.

Filing a Notice of Objection, by any method, formally advises the CRA that the taxpayer is disputing the Agency’s determination of their tax liability for the taxation year in question. Not incidentally, the filing of an Objection also brings to a halt most efforts undertaken by the CRA to collect taxes which it considers owing for the taxation year under dispute (although, if the taxpayer is eventually found to owe an amount in dispute, interest on that amount will have accumulated in the interim). Where the taxpayer files an Objection, the CRA’s collection efforts are, in most cases, suspended until 90 days after the date the CRA’s decision on that Objection is sent to the taxpayer.

There is a time limit by which any Objection must be filed, albeit a reasonably generous one. Individual taxpayers must file an Objection by the later of 90 days from the mailing date of the Notice of Assessment (the date found at the top of page 1) or one year from the due date of the return which is being disputed. So, for tax returns for the 2025 tax year, the one-year deadline (which is usually, but not always, the later of those two dates) would be April 30, 2027 (or June 15, 2027 for self-employed taxpayers and their spouses). As with most things related to taxes, it’s best not to put it off. At the very least, if the taxpayer is ultimately found to owe some or all of the taxes assessed by the CRA, interest will have accrued on those taxes for the entire period since the filing due date and, if the filing of the Objection is delayed, the CRA may well have already commenced its collection efforts.

In the course of making its decision, the Agency may or may not contact the taxpayer for further discussions of the issues in dispute. Should the taxpayer be contacted, they may be asked to provide representations outlining their position, in writing or at a meeting. Through such representations and meetings, it may be possible for the taxpayer and the CRA to come to an agreement on the taxpayer’s tax liability. In either case, the CRA will either confirm its original assessment or change it. If the original assessment is changed, the CRA will issue a Notice of Reassessment outlining the changes. If the taxpayer continues to disagree with the CRA’s position, the next step is an appeal to the Tax Court of Canada. Once matters reach this point, it’s generally a good idea to consult a lawyer before deciding to file an appeal.

Detailed information on the objection process is available on the CRA website at File an objection – Income tax – Canada.ca. The Agency also publishes a useful pamphlet entitled Resolving Your Dispute: Objection and Appeal Rights under the Income Tax Act; the most recent release of that publication can be found on the CRA website at P148 Resolving your dispute: Objection rights under the Income Tax Act – Canada.ca.

While the view of many Canadians, especially at tax return filing time, is that our tax system exists solely to take money out of their pockets, the reality is far more nuanced. It is certainly true that Canadian tax laws cast a very wide net, in which very few sources of income escape taxation. The reality is also, however, that a substantial amount of tax revenue received by the federal government is returned to Canadians through tax credit and benefit programs. Amounts paid under those programs are received tax-free and this year, changes have been made to some programs which increase the amount provided to Canadian individuals and families.

While the view of many Canadians, especially at tax return filing time, is that our tax system exists solely to take money out of their pockets, the reality is far more nuanced. It is certainly true that Canadian tax laws cast a very wide net, in which very few sources of income escape taxation. The reality is also, however, that a substantial amount of tax revenue received by the federal government is returned to Canadians through tax credit and benefit programs. Amounts paid under those programs are received tax-free and this year, changes have been made to some programs which increase the amount provided to Canadian individuals and families.

The tax credit and benefit program year generally runs from July to the following June, meaning that the upcoming benefit year will begin in July 2026 and end in June 2027. The reason for that timing is that eligibility for (as well as the amount of) most federal and provincial tax credits and benefits is based, at least in part, on individual or family income for the previous year. Consequently, the determination of whether an individual or family is eligible for such benefits during the 2026-27 benefit year is based on income amounts earned and reported on the tax return for 2025. It follows, then, that in order to receive such benefits during the 2026-27 benefit year it is necessary for all individuals, and both parents within a family, to file a return for 2025.

Unfortunately, a substantial number of eligible recipients don’t receive benefits to which they are entitled, simply because they haven’t filed a tax return for the previous year, leaving potentially hundreds or thousands of dollars in tax-free income unclaimed each year. As well, many Canadians who do receive such benefits but who then fail to file a tax return each year can see their benefit payments stop, even though they remain eligible to receive those benefits. Eligibility for federal and provincial credits and benefits begins, therefore, with filing an annual tax return. And, while the 2025 return filing deadline for most individuals of April 30, 2026 has passed, it’s not too late to file a return. While late filing of a return may result in delayed payment of benefits, eligibility for those benefit payments will not be lost.

It should be noted, as well, that while the federal government refers to these benefits under the umbrella term “child and family benefits”, it’s wrong to conclude that benefits are only available to parents and/or married individuals. Of the three benefit programs outlined below which will be in place during the upcoming benefit year, only the Canada Child Benefit/Child Disability Benefit program requires that a taxpayer be a parent, and none of the benefit programs require that a taxpayer be married or in a common-law relationship. As well, each of these tax credits/benefits are what are termed “status” credits/benefits, in which eligibility for and the amount of the credit/benefit is based on the taxpayer’s Canadian residence, income, marital status, and (for the Canada Child Benefit/Child Disability Benefit only) number of children. Unlike other deductions and credits claimable under our tax system, there is no requirement for an individual or family to make any expenditure of funds for any purpose in order to be eligible for the following credit/benefit programs.

GST/HST Credit/Groceries and Essentials Benefit

The GST/HST credit is a non-taxable amount paid four times a year (on the fifth of July, October, January, and April) to lower- and middle-income individuals and families, to help offset the cost of the goods and services tax/harmonized sales tax (GST/HST) that they pay. Generally, the credit is available to Canadian residents who meet all of the following criteria:

• aged 19 years of age or older; or
• under age 19 and
  • have or had a spouse or common law partner; or
  • are or were a parent and live (or lived) with their child.

A number of changes to the GST/HST tax credit were announced in the 2026 federal budget; those changes will mean increased payments under the program for eligible Canadians.

The first change is a renaming of the GST/HST tax credit. As of July 1, 2026, that program will be renamed the “Canada Groceries and Essentials Benefit” (CGEB). The change is one of name only, as the tax-free status, eligibility criteria, and payment schedule for the CGEB remain the same as for the former GST/HST tax credit.

The second change involves an increase in the amount of benefit which will be paid starting with the 2026-27 year. Benefit payments for that year, and until 2031, will be increased by 25%. Following that change, maximum benefits payable under the GEGB program for 2026-27 will be as follows:

• $679 for single individuals;
• $890 for individuals who are married or have a common-law partner; and
• $234 for each child under the age of 19.

Finally, the federal government will be providing a one-time “top-up” payment of the current GST/HST benefit. That payment will be made in June 2026, starting around June 5. The payment will be made to all Canadians who received a GST/HST benefit payment in January 2026, and will be equal to 50% of the total GST/HST credit payments received by such recipients during the 2025-26 benefit year. The amount of the top-up payment will range from $267 (for single individuals without children) to $717 (for single parent or two parent families with four children). Information on the one-time top-up payment is available on the federal government website at One-time GST/HST credit top-up payment - Canada.ca.

Detailed information on the new Groceries and Essentials Benefit can be found on the CRA website at Canada Groceries and Essentials Benefit - Canada.ca.

Canada Workers Benefit

The Canada Workers Benefit (CWB) is a refundable tax credit paid to lower income Canadian residents who are aged 19 or older or are married or have a common-law spouse or child with whom they live, and who have “working income” of at least $3,000. For the purposes of the CWB, such working income can be from employment or self-employment.

The amount of CWB which an individual or family can receive depends on marital status and net income. The basic amounts payable for the 2026 benefit year, and the net income levels at which eligibility for that basic benefit is eroded, are as follows.

• $1,665 for single individuals
  The single individual benefit is reduced if adjusted net income is more than $27,392.
• $2,869 for families 
  The family benefit amount is reduced if adjusted family net income is more than $31,251.

In order to apply for the CWB, a recipient must file their tax return electronically and follow the instructions provided for the particular tax return preparation software, or, if filing a paper return, must complete and file a Schedule 6 with that tax return.

More detailed information on the CWB, including the availability of advanced payments of the Benefit, can be found at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-workers-benefit.html.

Canada Child Benefit

The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The CCB is paid to the parent who is primarily responsible for the care and upbringing of the child or children, and the amount varies with the age and number of children.

The CCB is also a means-tested benefit, with the benefit amount being reduced as family net income increases. CCB amounts paid during the 2026-27 benefit year are based on family net income for 2025.

The maximum amounts payable for the benefit year running from July 2026 to June 2027 are as follows.

For each child:

• under 6 years of age: $8,157 per year ($679.75 per month)
• 6 to 17 years of age: $6,883 per year ($573.58 per month)

Where family net income for 2025 is less than $38,237, recipients will receive the maximum amount outlined above for 2026-27, with no reductions.

Individuals and families who may be eligible for the CCB will have their eligibility automatically assessed when they file their tax return for 2025: there is no requirement to file a particular schedule or other application. More information on the CTB is available on the federal government website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html.

Child Disability Benefit

Families who have children under the age of 18 for whom the federal disability tax credit can be claimed, and who are eligible to receive the Canada Child Benefit, will also receive the Child Disability Benefit (CDB).

For the 2026-27 benefit year, the CDB is equal to $3,480 for each eligible child, with the benefit amount being reduced where family net income is greater than $82,847. There is no requirement to apply for the CDB, as that benefit will automatically be issued to any family that has an eligible child for whom they are already receiving the Canada Child Benefit.

More information on the CDB is available at Child disability benefit - Canada.ca.

While the number and variety of federal child and family benefits, and the varying eligibility criteria for each, can be confusing, the necessary determinations and calculations are done by the federal government. The only step which need be taken by an individual is the filing of an annual tax return. Taxpayers who wish to find information on the benefits for which they may be eligible (and to obtain an online estimate of the amount of those benefits) can refer to the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits.html and Tax credits and benefits for individuals - Canada.ca, where detailed information on each such benefit program can be found.

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.

They can be accessed below.

Corporate:

Issue #76 Corporate

Personal:

Issue #76 Personal