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Five Key Tax Changes Coming in 2026: What Canadians Need to Know

  As 2026 approaches, Canadians can expect several important updates to the federal tax system. These changes affect retirement planning, income tax brackets, and a range of credits that influence how much individuals and families will owe—or save—when filing their returns. Here’s a quick look at five of the most notable adjustments. 1. Higher RRSP Contribution Limits Canadians will be able to contribute more to their Registered Retirement Savings Plans (RRSPs) in 2026, thanks to inflation indexing. The increased limit gives savers more room to reduce taxable income while building long‑term retirement security. 2. Updated Federal Tax Brackets Income tax brackets will shift upward to reflect inflation. This means more of your income will be taxed at lower rates, helping offset rising living costs and preventing “bracket creep,” where inflation pushes taxpayers into higher tax brackets without real income gains. 3. Increased Basic Personal Amount (BPA) The Basic Personal Amoun...
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Trudeau Announces GST Holiday and $250 Cheques to Ease Holiday Costs

 

Prime Minister Justin Trudeau has unveiled a series of measures aimed at alleviating financial pressures for Canadians during the holiday season. The announcement includes a two-month GST holiday on select goods and services, as well as $250 cheques for many Canadians.

Starting December 14, 2024, and running through February 15, 2025, the GST holiday will apply to a variety of items, including prepared foods, restaurant meals, snacks, children’s clothing and footwear, toys, books, and Christmas trees. This initiative is designed to provide immediate relief to families and individuals facing high costs during the festive period.

In addition to the GST holiday, the federal government will issue $250 cheques to Canadians who earned up to $150,000 in 2023. These cheques, part of the “Working Canadians Rebate,” are expected to be distributed in early spring 2025.

Trudeau emphasized that these measures are intended to help Canadians manage their expenses during a time of year that can be particularly financially challenging. “For two months, Canadians are going to get a real break on everything they do,” he said at a media event in Newmarket, Ontario.

Deputy Prime Minister Chrystia Freeland added that the GST holiday and rebate are part of the government’s broader efforts to support Canadians as the country continues to recover from the economic impacts of the COVID-19 pandemic.

These initiatives are expected to save taxpayers an estimated $1.6 billion over the two-month period, providing significant relief to many households across the country.


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