Category: Personal income tax news

British Columbia Budget 2026

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British Columbia Finance Minister Brenda Bailey presented Budget 2026: Securing B.C.’s Future (“Budget 2026”) on February 17, 2026. Budget 2026 includes a major overhaul of BC’s income tax system. Highlights of these changes and related measures are outlined below. Income Tax Act Lowest Personal Income Tax Rate and Basic Personal Income Tax Credits Increased Effective…

CRA Interest rates for the second calendar quarter

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The Canada Revenue Agency (CRA) announced today the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. These rates will be in effect from April 1, 2026 to June 30, 2026. Income tax The interest rate charged on overdue taxes, Canada…

Getting ready for tax season? Here’s how to give your tax preparer access – faster and more securely

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February 11, 2026 Ottawa, Ontario Canada Revenue Agency As tax season approaches, many Canadians work with a tax preparer to file their return. To do that, you may need to give them permission to access your tax information with the Canada Revenue Agency (CRA). The CRA has improved its authorization service for individuals. Here’s what…

Government Announces the 2026 Automobile Deduction Limits and Expense Benefit Rates for Businesses

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January 14, 2026 – Ottawa, Ontario – Department of Finance Canada Today, the Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2026. The following changes to limits and rates took effect as of January 1, 2026: The ceiling for capital cost allowances (CCA) for…

Government launches consultation on draft legislation for previously announced and technical tax measures

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From: Department of Finance Canada News release January 29, 2026 – Ottawa, Ontario – Department of Finance Canada The Department of Finance today released for consultation draft legislative proposals to implement a range of previously announced tax measures. The proposed changes aim to clarify and improve tax rules, close gaps to prevent tax avoidance, and ensure…

Canada Groceries and Essentials Benefit

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The GST credit will be replaced by the Canada Groceries and Essentials Benefit The government is introducing the new Canada Groceries and Essentials Benefit – formerly the Goods and Services Tax (GST) Credit. We are increasing its amount by 25% for five years beginning in July 2026. In addition to that, we are providing a one-time payment, equivalent…

Prescribed interest rates

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Good tax policies go hand in hand with good economic policies — we need both

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My latest Financial Post article discusses tax reform and the importance to improve how Canada develops tax policy: “One of the things I enjoy is hanging out with tax geeks like me who have a similar passion to see Canada’s tax system improved. Last week, I attended the Canadian Tax Foundation’s Tax Policy Symposium in…

Made a mistake on your taxes? Upcoming changes to the Voluntary Disclosures Program

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September 10, 2025 Ottawa, Ontario Canada Revenue Agency The Canada Revenue Agency (CRA) is committed to helping taxpayers correct their past tax mistakes. The Voluntary Disclosures Program (VDP) allows for well-intentioned taxpayers to voluntarily correct their tax affairs and receive some financial relief. On October 1, 2025, changes to the VDP will come into effect. These changes will…