Proposed Tax Changes in Canada (October 2026): What's Announced but Not Yet Law

Tax changes in Canada usually start as an announcement, then become draft legislation, and only later become law. That gap can last months, sometimes years. This post tracks the proposals that matter most to individuals and small businesses in Ontario, as of October 4, 2026.

Why the word proposed matters

Announced: the government says it intends to make a change, often in a budget or news release.
Draft legislation: the Department of Finance publishes the actual wording, often for public comment.
Passed: a bill goes through Parliament and receives Royal Assent. Only then is it law.

The CRA sometimes administers a proposal before it's law, but not always, and proposals can change or be dropped. The capital gains inclusion rate increase is the best recent example: it was announced in 2024, administered for a while, deferred, and then cancelled in March 2025. That's why we label every change in our articles as either proposed or law.

Federal proposals to watch

1. Productivity Mega Deduction

Announced September 15, 2026, with draft legislation released the same day. It would permanently let businesses deduct 100% of the cost of most depreciable property acquired on or after September 15, 2026, in the year it becomes available for use. Buildings, certain vehicles, and goodwill-type property are excluded. Full details in our post on the Productivity Mega Deduction.

2. Crypto and financial account reporting

Draft legislation released on August 15, 2025 would implement the Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard. The Spring Economic Update 2026 confirmed the government intends to proceed, with a deferred application date of January 1, 2027. Crypto platforms would then report customer transactions to the CRA. See our guide on what CARF means for crypto investors.

3. Draft proposals released January 29, 2026

The Department of Finance released a package of draft legislative and regulatory proposals on January 29, 2026, and the Spring Economic Update confirmed it intends to proceed with them. The package includes:

Immediate expensing for manufacturing and processing buildings, from Budget 2025
Tax deferral through tiered corporate structures, aimed at groups of private corporations that defer tax on investment income
The 21-year rule for trusts
Qualified investments for registered plans, simplifying what RRSPs, TFSAs and similar plans can hold
Reporting by non-profit organizations
Technical amendments, including to the Canada Carbon Rebate rules

Some previously announced measures were folded into Bill C-30 when it passed in June 2026, so check the status of any single item before relying on it.

4. Automatic tax filing for lower-income Canadians

Budget 2025 announced that the CRA would be allowed to file tax returns on behalf of certain lower-income individuals, so they receive benefits they're entitled to but often miss. The Spring Economic Update 2026 listed it among the measures the government intends to proceed with.

5. Disability Tax Credit certification

The Spring Economic Update 2026 proposed a simpler certification process for more than 40 long-lasting medical conditions, more types of practitioners who can certify certain impairments, and a role for public guardians and trustees. Check the CRA's guidance for the current status.

6. A GST/HST reverse charge for telecommunications

Budget 2025 announced new GST/HST rules that would introduce a reverse charge mechanism, starting with certain supplies in the telecommunications sector. As of the Spring Economic Update, the legislative proposals hadn't been released.

Ontario items to watch

Update: Ontario's first-time home buyer HST rebate is now in place. It covers the 8% provincial portion of HST for eligible first-time buyers of new homes, and the CRA now describes how it works alongside Ontario's enhanced new housing rebate in GST/HST Notice 346. See our new-home rebate guide.
End of Ontario's regular new housing rebates: the 2026 Budget proposed ending the regular Ontario HST New Housing Rebate and New Residential Rental Property Rebate after the temporary enhancement ends on March 31, 2027, with transition details promised in the fall 2026 Ontario Economic Outlook and Fiscal Review.

Budget 2026 is coming this fall

Canada now tables its federal budget in the fall, with an economic update in the spring. The Department of Finance launched pre-budget consultations on July 6, 2026 and said Budget 2026 will be delivered this fall. The exact date hadn't been announced as of early October. We'll cover what it means for Ontario individuals and businesses once it's tabled.

Already law, so you can stop wondering

The lowest federal tax rate is 14% from 2026 (Bill C-4, March 2026). See what the tax cut means for you.
The first-time home buyers' GST rebate of up to $50,000 (Bill C-4).
Budget 2025 measures in Bill C-15 (March 2026), including the Personal Support Workers Tax Credit and the end of the Underused Housing Tax. See our Budget 2025 summary.
Spring Economic Update measures in Bill C-30 (June 2026), including the CPP rate cut starting in 2027. See our Spring Economic Update summary.
Ontario's small business tax rate cut to 2.2% on July 1, 2026. See our Ontario Budget summary.
Ontario's enhanced new housing rebate and the new Ontario New Home Affordability Payment for eligible new-home buyers (CRA Notice 346).

Sources

We update our blog as these proposals move. If one of them affects a decision you're making now, book a consultation.