Updates · 2022 – 2026
Canadian Financial News & Updates
Tax, mortgage rate, housing, benefit and banking changes affecting Canadian residents — each summarised from the announcement by the government agency or company that made it, and linked to the original.
All updates
82 updates, newest first
BC Pauses PST Expansion to Professional Services Planned for 1 Oct 2026
The Province of British Columbia (BC) is pausing, through a temporary regulation, the expansion of the provincial sales tax (PST) to professional services that had been scheduled to take effect on 1 Oct 2026, so the PST exemption is maintained on services such as accounting and bookkeeping. Savings are estimated at about CAD 260 million in 2026–27.
What changed
- PST on professional services: expansion planned for 1 Oct 2026 paused; exemption maintained
- Services that stay exempt: accounting and bookkeeping; architectural, geoscientist and engineering; non-residential real estate commissions; security and private investigation
- Mechanism: a temporary regulation
- Estimated savings (people, local governments, businesses): about CAD 260 million in 2026–27
EI Premium Rate for 2027 Set at CAD 1.64 per CAD 100; Maximum Insurable Earnings CAD 70,800
The Canada Employment Insurance Commission set the 2027 Employment Insurance (EI) premium rate at CAD 1.64 per CAD 100 of insurable earnings for employees and CAD 2.30 for employers, equal to the 2025 rate, effective 1 Jan 2027. Maximum insurable earnings rise to CAD 70,800 from CAD 68,900.
What changed (effective 1 Jan 2027)
- Employee premium rate: CAD 1.64 per CAD 100 of insurable earnings (equal to the 2025 rate)
- Employer premium rate: CAD 2.30 per CAD 100 of insurable earnings
- Maximum insurable earnings: CAD 70,800 (from CAD 68,900)
- Maximum annual employee contribution: CAD 1,161.12 (up CAD 38.05)
- Maximum annual employer contribution: CAD 1,625.57 per employee
- Quebec (QPIP) employee rate: CAD 1.29 per CAD 100 of insurable earnings
One-Time CAD 150 Canada Disability Benefit Supplemental Payment From 17 Sep 2026
Employment and Social Development Canada announced a one-time supplemental payment of CAD 150 for Canada Disability Benefit (CDB) recipients for each approved disability tax credit (DTC) certificate that qualifies them for the CDB, as announced in Budget 2025. Payments are issued automatically, starting 17 Sep 2026.
What changed (effective 17 Sep 2026)
- Supplemental payment: CAD 150 for each approved DTC certificate that qualifies the person for the CDB
- 17 Sep 2026: eligible recipients who received a CDB payment from Jul 2025 to Jun 2026
- Winter 2027: people eligible for a CDB payment since Jul 2026 and people re-certified for the DTC
- Application: not required; the payment is issued automatically
Federal Fuel Excise Tax Suspension Extended to 31 Jan 2027, Then 50% of Regular Rates to 31 Mar 2027
Department of Finance Canada announced that the temporary suspension of the federal fuel excise tax is being extended until 31 Jan 2027, with 50% of the regular excise tax rate applying from 1 Feb through 31 Mar 2027.
What changed
- Full suspension: extended until 31 Jan 2027
- 1 Feb to 31 Mar 2027: 50% of the regular excise tax rate
- Relief since 20 Apr 2026: 10 cents per litre on gasoline and unleaded aviation gasoline, 11 cents on leaded aviation gasoline, 4 cents on diesel and aviation fuel
CIBC Reports Third Quarter 2026 Net Income of CAD 2,409 Million
CIBC reported net income of CAD 2,409 million for the third quarter ended 31 Jul 2026, up 15% from CAD 2,096 million a year earlier, and adjusted net income of CAD 2,648 million, up 26%. Reported diluted earnings per share were CAD 2.47, compared with CAD 2.15.
Key figures
- Revenue, Q3 2026: CAD 8,368 million (from CAD 7,254 million, up 15%)
- Reported net income, Q3 2026: CAD 2,409 million (from CAD 2,096 million, up 15%)
- Adjusted net income, Q3 2026: CAD 2,648 million (from CAD 2,104 million, up 26%)
- Reported diluted earnings per share: CAD 2.47 (from CAD 2.15)
- Common Equity Tier 1 (CET1) ratio: 13.4% at 31 Jul 2026
Company announcement — figures are from Canadian Imperial Bank of Commerce’s own release, not an official government source.
Royal Bank of Canada Q3 2026 Net Income of CAD 6.0 Billion, Up 11%
Royal Bank of Canada reported net income of CAD 6.0 billion for the quarter ended 31 Jul 2026, up CAD 610 million or 11% from the prior year, and diluted earnings per share of CAD 4.23, up 13%. Adjusted net income was CAD 6.1 billion, up 10%.
Key figures
- Net income, Q3 2026: CAD 6.0 billion (up 11% year on year)
- Diluted earnings per share: CAD 4.23 (up 13%)
- Adjusted net income, Q3 2026: CAD 6.1 billion (up 10%)
- Return on equity (ROE): 17.9%
- CET1 ratio: 13.5%
Company announcement — figures are from Royal Bank of Canada’s own release, not an official government source.
TD Bank Group Q3 2026 Reported Net Income of CAD 4,615 Million
TD Bank Group reported net income of CAD 4,615 million for the third quarter ended 31 Jul 2026, compared with CAD 3,336 million a year earlier, and reported diluted earnings per share of CAD 2.74, compared with CAD 1.89. Adjusted net income was CAD 4,671 million, compared with CAD 3,871 million.
Key figures
- Reported net income, Q3 2026: CAD 4,615 million (from CAD 3,336 million in Q3 2025)
- Adjusted net income, Q3 2026: CAD 4,671 million (from CAD 3,871 million)
- Reported diluted earnings per share: CAD 2.74 (from CAD 1.89)
- Dividends per share, Q3 2026: CAD 1.12 (from CAD 1.05 in Q3 2025)
- Common Equity Tier 1 Capital ratio: 14.3%
Company announcement — figures are from TD Bank Group’s own release, not an official government source.
National Bank Q3 2026 Net Income CAD 1,307 Million, Up 23%
National Bank reported net income of CAD 1,307 million for the third quarter of 2026, up 23% from CAD 1,065 million a year earlier, and diluted earnings per share of CAD 3.25, up 26% from CAD 2.58.
Key figures
- Net income, Q3 2026: CAD 1,307 million (from CAD 1,065 million, up 23%)
- Adjusted net income, Q3 2026: CAD 1,362 million (from CAD 1,104 million, up 23%)
- Diluted earnings per share: CAD 3.25 (from CAD 2.58, up 26%)
- Dividends declared per common share, Q3 2026: CAD 1.32 (from CAD 1.18 in Q3 2025)
- CET1 capital ratio: 13.5% at 31 Jul 2026 (from 13.8% at 31 Oct 2025)
Company announcement — figures are from National Bank of Canada’s own release, not an official government source.
BMO Q3 2026 Reported Net Income CAD 1,750 Million, Down 25%
BMO Financial Group reported net income of CAD 1,750 million for the third quarter ended 31 Jul 2026, a decrease of 25% from CAD 2,330 million a year earlier, and adjusted net income of CAD 2,859 million, up 19% from CAD 2,399 million.
Key figures
- Reported net income, Q3 2026: CAD 1,750 million (from CAD 2,330 million, down 25%)
- Adjusted net income, Q3 2026: CAD 2,859 million (from CAD 2,399 million, up 19%)
- Reported EPS: CAD 2.38 (from CAD 3.14)
- Fourth quarter 2026 dividend: CAD 1.71 per common share, unchanged from the prior quarter (up CAD 0.08 or 5% year on year)
- Equivalent annual dividend: CAD 6.84 per common share
- Common Equity Tier 1 (CET1) Ratio: 13.0% at 31 Jul 2026, unchanged from the end of Q2 2026
Company announcement — figures are from BMO Financial Group’s own release, not an official government source.
Scotiabank Q3 2026 Reported Net Income of CAD 2,953 Million
Scotiabank reported net income of CAD 2,953 million for the third quarter ended 31 Jul 2026, compared with CAD 2,527 million a year earlier, and diluted earnings per share of CAD 2.27, compared with CAD 1.84. Adjusted net income was CAD 2,973 million.
Key figures
- Reported net income, Q3 2026: CAD 2,953 million (from CAD 2,527 million in Q3 2025)
- Adjusted net income, Q3 2026: CAD 2,973 million (from CAD 2,518 million)
- Reported diluted earnings per share: CAD 2.27 (from CAD 1.84)
- Common Equity Tier 1 (CET1) capital ratio: 13.1%
Company announcement — figures are from Bank of Nova Scotia’s own release, not an official government source.
Canada Child Benefit for 2026–27: Up to CAD 8,157 per Child Under 6
The Canada Revenue Agency announced that for 2026–27 the Canada Child Benefit (CCB) provides up to CAD 8,157 per child under 6 and up to CAD 6,883 per child aged 6 to 17, increases of up to CAD 160 and CAD 135 per child on the previous year. About 3.6 million families receive the CCB nationally.
What changed (effective 2026–27)
- Maximum per child under 6: CAD 8,157 a year (up to CAD 160 more)
- Maximum per child aged 6 to 17: CAD 6,883 a year (up to CAD 135 more)
- Benefit year: 2026–27, starting Jul 2026
Proposed Newfoundland and Labrador Basic Personal Amount of CAD 13,094 and PEI 20% Top Bracket
The Canada Revenue Agency (CRA) payroll deductions formulas effective 1 Jul 2026 reflect two provincial income tax changes, if enacted as proposed: the Newfoundland and Labrador basic personal amount rises from CAD 11,188 to CAD 13,094 effective 1 Jan 2026, and Prince Edward Island (PEI) taxes taxable income above CAD 200,000 at 20% for 2026 and subsequent years.
What changed (effective 2026)
- Newfoundland and Labrador basic personal amount: CAD 13,094 (from CAD 11,188), effective 1 Jan 2026
- PEI new top bracket: 20% on taxable income above CAD 200,000, for 2026 and subsequent years
- PEI bracket below it: 19.00% on income from CAD 142,520 to CAD 200,000
- Withholding from the first payroll in Jul 2026: Prorated for the remaining six months: NL basic personal amount CAD 15,000; PEI top rate 21%
- New TD1NL form: Not needed where an employee submitted a TD1NL before 1 Jul 2026
- Payroll formulas: T4127, 123rd edition, effective 1 Jul 2026
CMHC Prefab Plus Offers Insured Mortgages on Factory-Built Homes With 5% Down
Canada Mortgage and Housing Corporation (CMHC) announced CMHC Prefab Plus, which lets homebuyers purchase a factory-built home with a minimum down payment of 5% and CMHC-insured financing, with mortgage funds released in up to four stages (draws) as construction milestones are met rather than in one lump sum.
What changed
- Minimum down payment, factory-built home: 5% (CMHC Prefab Plus)
- Mortgage funds: released in up to four draws as construction milestones are met
Spring Economic Update 2026: Base CPP Contribution Rate to Fall to 9.5% From 1 Jan 2027
Department of Finance Canada announced in the Spring Economic Update 2026 a reduction in the contribution rate of the base Canada Pension Plan (CPP) from 9.9% to 9.5%, effective 1 Jan 2027. The department states this translates into annual savings of about CAD 133 for an employee earning CAD 70,000 a year, with equivalent savings for the employer.
What changed (effective 1 Jan 2027)
- Base CPP contribution rate: 9.5% from 1 Jan 2027 (from 9.9%)
- Estimated saving, employee earning CAD 70,000 a year: about CAD 133 a year, with equivalent savings for the employer
Federal Fuel Excise Tax on Gasoline and Diesel Set to 0 Cents per Litre, 20 Apr to 7 Sep 2026
Department of Finance Canada announced it intends to introduce legislative amendments to the Excise Tax Act to temporarily suspend the federal fuel excise tax on gasoline, diesel fuel and aviation fuels by setting their rates to 0 cents per litre, from 20 Apr 2026 until 7 Sep 2026 (inclusive).
What changed (effective 20 Apr 2026)
- Gasoline and unleaded aviation gasoline: 0 cents per litre (from 10 cents)
- Diesel fuel and aviation fuel: 0 cents per litre (from 4 cents)
- Period: 20 Apr 2026 to 7 Sep 2026 (inclusive)
- Status: legislative amendments to the Excise Tax Act to be introduced
Old Age Security Maximum for Apr–Jun 2026: CAD 743.05 a Month at 65 to 74, CAD 817.36 at 75+
Employment and Social Development Canada (ESDC) published the Old Age Security (OAS) amounts for April to June 2026: the maximum monthly OAS pension is CAD 743.05 for people aged 65 to 74 and CAD 817.36 for those aged 75 and over. The maximum Guaranteed Income Supplement (GIS) for a single person who receives an OAS pension is CAD 1,109.85 a month.
What changed (effective Apr 2026)
- OAS pension, age 65 to 74: CAD 743.05 a month (maximum)
- OAS pension, age 75 and over: CAD 817.36 a month (maximum)
- GIS, single person who receives an OAS pension: CAD 1,109.85 a month (maximum); annual income cut-off CAD 22,512
- Allowance: CAD 1,411.13 a month (maximum)
- Allowance for the Survivor: CAD 1,682.15 a month (maximum)
- OAS pension repayment range, 2026: net world income from CAD 95,323 to CAD 154,753 at 65 to 74; upper threshold CAD 160,696 at 75 and over
Ontario Proposes Removing Full 13% HST on New Homes up to CAD 1 Million for All Eligible Buyers
The Ontario government announced, as part of the upcoming 2026 Budget, a proposal to remove the full 13% HST for eligible buyers of new homes valued up to CAD 1 million (a maximum rebate of CAD 130,000) for one year, from 1 Apr 2026 to 31 Mar 2027. The federal government agreed to cost-share, subject to passage of federal legislation.
What changed (effective 1 Apr 2026)
- New homes up to CAD 1 million: full 13% HST removed; maximum rebate CAD 130,000
- New homes CAD 1 million to CAD 1.5 million: maximum rebate of CAD 130,000 maintained
- New homes above CAD 1.5 million: rebate decreases proportionally to CAD 24,000 for homes valued at CAD 1.85 million and above
- Period (proposed): one year, 1 Apr 2026 to 31 Mar 2027
- Eligible use: new home acquired as a primary place of residence or as a residential rental property
- First-time buyers' provincial HST rebate: effective date aligned with the federal proposed date of 20 Mar 2025
Bill C-4 Receives Royal Assent: 14% Lowest Tax Rate and First-Time Buyer GST Rebate Become Law
Department of Finance Canada announced that Bill C-4, the Making Life More Affordable for Canadians Act, received Royal Assent on 12 Mar 2026, bringing into law the cut in the lowest personal income tax rate from 15% to 14% since 1 Jul 2025 and the First-Time Home Buyers' GST Rebate of up to CAD 50,000.
What changed
- Lowest marginal personal income tax rate: 14% since 1 Jul 2025 (from 15%), now law
- First-Time Home Buyers' GST Rebate: up to CAD 50,000; GST eliminated on new homes up to CAD 1 million and reduced between CAD 1 million and CAD 1.5 million
- Rebate: purchase agreements covered: generally entered into on or after 20 Mar 2025 and before 2031
- Rebate claims: CRA can now start processing them
- Federal consumer fuel charge: removed from federal legislation
NSF Fees at Federally Regulated Banks Capped at CAD 10 From 12 Mar 2026
The Financial Consumer Agency of Canada (FCAC) announced that new regulations capping at CAD 10 the non-sufficient funds (NSF) fees federally regulated banks charge came into force on 12 Mar 2026. FCAC oversees industry compliance with the new NSF fee requirements.
What changed (effective 12 Mar 2026)
- NSF fee cap, personal deposit accounts: CAD 10
- Repeat NSF fees: no more than once in 2 business days for the same personal deposit account
- Small overdrafts: no NSF fee when the overdraft on the account is less than CAD 10
BC Budget 2026: First Income Tax Bracket Rate to 5.60%; Foreign-Owner SVT to 4% for 2027
British Columbia's (BC) Budget 2026 raises the rate on the first provincial income tax bracket from 5.06% to 5.60% (an average CAD 76 more in 2026), pauses bracket indexing from 2027 until 2030, and raises the speculation and vacancy tax for foreign owners to 4% and the Additional School Tax on homes over CAD 3 million for the 2027 tax year.
What changed
- First income tax bracket rate: 5.60% (from 5.06%); average CAD 76 more in 2026, offset for lower incomes by a higher BC tax reduction credit
- Income tax bracket indexing: paused from 2027 until 2030
- SVT, foreign owners and untaxed worldwide earners: 4% for the 2027 tax year (from 3%)
- Additional School Tax, values CAD 3 million to CAD 4 million: 0.3% (from 0.2%) for the 2027 tax year
- Additional School Tax, values above CAD 4 million: 0.6% (from 0.4%) for the 2027 tax year
- PST base (announced): to cover professional services such as accounting and bookkeeping; some exemptions to be removed, such as basic cable television and land-line telephone
Canada Groceries and Essentials Benefit Becomes Law: One-Time Top-Up and 25% Increase From Jul 2026
Department of Finance Canada announced that Bill C-19, the Canada Groceries and Essentials Benefit Act, received Royal Assent on 12 Feb 2026: a one-time top-up payment in spring 2026 equal to a 50% increase in the annual 2025–26 value of the GST Credit, and a 25% increase in the benefit for five years starting in July 2026.
What changed
- One-time top-up (spring 2026): equal to a 50% increase in the annual 2025–26 value of the GST Credit; CAD 3.1 billion to 12 million recipients
- Ongoing benefit: 25% higher for five years starting in July 2026
- Family of four: up to CAD 1,890 this year including the top-up, then about CAD 1,400 a year for the next four years
- Single person: up to CAD 950 this year including the top-up, then about CAD 700 a year for the next four years
- Payments: quarterly, at the start of the quarter
Toronto 2026 Budget: 2.2% Combined Residential Property Tax and City Building Fund Increase
The City of Toronto's 2026 Budget, deemed adopted on 10 Feb 2026, includes a 0.7% residential operating levy increase and a 1.5% City Building Fund levy increase: a combined 2.2%, or CAD 91.53 a year for a home at the average assessment of CAD 692,140. It keeps the 3.75% Toronto Water and Solid Waste rate and fee increase approved in December.
What changed (effective 2026)
- Residential operating levy: 0.7% increase
- City Building Fund levy: 1.5% increase
- Combined residential increase: 2.2%: CAD 91.53 a year (CAD 7.63 a month) on the average assessed home (CAD 692,140)
- Multi-residential and commercial operating levy: 0.35% increase
- Toronto Water and Solid Waste rates and fees: 3.75% increase (interim rates approved by City Council in December, maintained)
- TTC: fares frozen for a third consecutive year; monthly fare cap after 47 paid trips, starting in September
Federal EV Affordability Program: Up to CAD 5,000 for EVs and CAD 2,500 for Plug-In Hybrids
The Prime Minister of Canada announced a five-year, CAD 2.3 billion EV Affordability Program to offer individuals and businesses purchase or lease incentives of up to CAD 5,000 for battery electric and fuel cell EVs and up to CAD 2,500 for plug-in hybrids (PHEVs). A CAD 50,000 final transaction value cap will apply to cars made by countries Canada has free trade agreements with, not to Canadian-made EVs and PHEVs.
What changed
- Battery electric and fuel cell EVs: Purchase or lease incentive of up to CAD 5,000
- Plug-in hybrids (PHEVs): Purchase or lease incentive of up to CAD 2,500
- Final transaction value cap: Up to CAD 50,000 for cars made by countries Canada has free trade agreements with; the cap will not apply to Canadian-made EVs and PHEVs
- Program funding: CAD 2.3 billion; five-year program
2026 Tax-Filing Season: 14.5% Lowest Rate for 2025 and a New Top-Up Tax Credit
The Canada Revenue Agency set out what changes for 2025 income tax and benefit returns: the full-year lowest marginal individual income tax rate for 2025 is 14.5%, a new non-refundable top-up tax credit keeps a 15% rate for certain credits claimed on amounts over CAD 57,375, online filing opens 23 Feb 2026 and most individuals file and pay by 30 Apr 2026.
What changed
- Lowest marginal rate, full year 2025: 14.5% (15% to 14% from 1 Jul 2025)
- Top-up tax credit: keeps a 15% rate for certain non-refundable credits claimed on amounts over CAD 57,375
- Online filing opens: 23 Feb 2026
- Filing and payment deadline, most individuals: 30 Apr 2026
- Self-employed filing deadline: 15 Jun 2026 (amounts owed still due 30 Apr 2026)
- Notices of assessment: digital notices of assessment and reassessment viewable only in My Account, from Feb 2026
BC Homeowner Grant Threshold Set at CAD 2.075 Million for 2026 (from CAD 2.175 Million)
The Province of British Columbia (BC) set the 2026 threshold for the provincial homeowner grant at CAD 2.075 million, down from CAD 2.175 million last year. Basic grant amounts are unchanged at up to CAD 570 in the Capital, Fraser Valley and Metro Vancouver regional districts and up to CAD 770 elsewhere.
What changed (effective 2026)
- Homeowner grant threshold, 2026: CAD 2.075 million (from CAD 2.175 million)
- Basic grant, Capital, Fraser Valley, Metro Vancouver: up to CAD 570 (unchanged)
- Basic grant, outside those regional districts: up to CAD 770 (unchanged)
- Additional grant total (seniors, veterans, disability): up to CAD 845 in those three regional districts; up to CAD 1,045 elsewhere
- Phase-out above the threshold: CAD 5 per CAD 1,000 of assessed value
- Assessment basis: BC Assessment market values as of 1 Jul 2025
BC 2026 Property Assessments: Most Lower Mainland Values Change Between -10% and 0%
BC Assessment announced 2026 property assessments, which reflect market value as of 1 Jul 2025, for about 1,140,000 Lower Mainland properties, with most changes ranging between -10% and 0%. Vancouver Island and the Southern Interior generally range between -5% and +5%, and the North and the Kootenays between -5% and +15%.
What changed (effective 2026)
- Valuation dates: Market value as of 1 Jul 2025; physical condition as of 31 Oct 2025
- Lower Mainland total assessments: About CAD 1.92 trillion (from about CAD 2.01 trillion in 2025)
- City of Vancouver, typical single family home: CAD 2,092,000 (from CAD 2,205,000), -5%
- City of Vancouver, typical strata home: CAD 772,000 (from CAD 798,000), -3%
- Total value of BC real estate: More than CAD 2.75 trillion, a decrease of almost 2.5% from 2025
- Notice of Complaint (Appeal) deadline: 2 Feb 2026
Maximum CPP Retirement Pension at 65 for New Pensions Starting Jan 2026: CAD 1,507.65 a Month
Employment and Social Development Canada (ESDC) published the Canada Pension Plan (CPP) maximum amounts for new benefits beginning in January 2026: the maximum retirement pension at age 65 is CAD 1,507.65 a month. CPP benefits in pay in the previous year receive an annual adjustment of 2.0%.
What changed (effective Jan 2026)
- Maximum retirement pension at 65, January 2026: CAD 1,507.65 a month
- Maximum post-retirement benefit at 65: CAD 54.69 a month
- Maximum disability pension: CAD 1,741.20 a month
- Maximum survivor's pension, 65 and older: CAD 904.59 a month
- Death benefit (one-time payment): CAD 2,500
- Annual adjustment of benefits in pay: 2.0%
Toronto Revises Graduated MLTT Rates Above CAD 3,000,000 to 4.40%–8.60% From 1 Apr 2026
The City of Toronto announced that City Council passed an amendment revising the graduated Municipal Land Transfer Tax (MLTT) rates for high-value residential properties containing one or two single-family residences, with the revised rates taking effect on 1 Apr 2026. The rates run from 4.40% for a value of consideration over CAD 3,000,000 and up to CAD 4,000,000 to 8.60% over CAD 20,000,000.
What changed (effective 1 Apr 2026)
- Over CAD 3,000,000 and up to CAD 4,000,000: 4.40% from 1 Apr 2026
- Over CAD 4,000,000 and up to CAD 5,000,000: 5.45% from 1 Apr 2026
- Over CAD 5,000,000 and up to CAD 10,000,000: 6.50% from 1 Apr 2026
- Over CAD 10,000,000 and up to CAD 20,000,000: 7.55% from 1 Apr 2026
- Over CAD 20,000,000: 8.60% from 1 Apr 2026
- Properties covered: Residential properties containing at least one, and not more than two, single family residences
CRA No Longer Mails the 2025 Income Tax Package Automatically; Orders Open 20 Jan 2026
The Canada Revenue Agency (CRA) will no longer proactively mail the 2025 income tax package to individuals. From 20 Jan 2026, paper filers can order, view, download and print the package online or order it through the CRA's automated phone line, and federal schedules with low usage rates have been removed from the package.
What changed (effective 20 Jan 2026)
- 2025 income tax package by mail: No longer mailed automatically to individuals
- Ordering the package: Online or through the automated phone line, from 20 Jan 2026
- Federal schedules removed from the package: Schedules 2, 3, 5, 6, 7, 9, 11, 12, 13 and 15; still available on request
- Provincial and territorial schedules removed: Versions of schedules 2 and 11 (all except Quebec) and 12 (British Columbia, New Brunswick, Saskatchewan)
- Delivery time for ordered forms: Up to 10 business days
Tax-Free Savings Account Annual Limit for 2026 Unchanged at CAD 7,000
The Canada Revenue Agency (CRA) announced that the 2026 Tax-Free Savings Account (TFSA) annual limit will be CAD 7,000, the same as the TFSA limit for 2025.
What changed (effective 2026)
- TFSA annual limit, 2026: unchanged at CAD 7,000
Federal Tax Brackets and Basic Personal Amount Indexed by 2.0% for 2026
The Canada Revenue Agency (CRA) published the 2026 indexation increase of 2.0% for personal income tax and benefit amounts: the 20.5% federal bracket begins above taxable income of CAD 58,523 and the maximum basic personal amount is CAD 16,452. Bracket thresholds and non-refundable credit amounts take effect on 1 Jan 2026.
What changed (effective 1 Jan 2026)
- Indexation increase: 2.0% (from 2.7% for 2025)
- Taxable income above which the 20.5% bracket begins: CAD 58,523 (from CAD 57,375)
- Taxable income above which the 26% bracket begins: CAD 117,045 (from CAD 114,750)
- Taxable income above which the 29% bracket begins: CAD 181,440 (from CAD 177,882)
- Taxable income above which the 33% bracket begins: CAD 258,482 (from CAD 253,414)
- Basic personal amount (maximum): CAD 16,452 (from CAD 16,129); CAD 14,829 (from CAD 14,538) where net income is at or above the amount at which the 33% bracket begins
Maximum Weekly EI Benefit Rate Rises to CAD 729 for Claims From 28 Dec 2025
Employment and Social Development Canada (ESDC) states that for Employment Insurance (EI) claims beginning on or after 28 Dec 2025, the maximum weekly benefit rate is CAD 729 (CAD 695 in 2025) and the maximum for extended parental benefits is CAD 437 (CAD 417 in 2025). Maximum insurable earnings, which determine the weekly maximum, are CAD 68,900 from 1 Jan 2026.
What changed (effective 28 Dec 2025)
- Maximum weekly EI benefit rate: CAD 729 (from CAD 695 in 2025)
- Maximum weekly rate, extended parental benefits: CAD 437 (from CAD 417 in 2025)
- Applies to: Claims beginning on or after 28 Dec 2025
CPP for 2026: Maximum Pensionable Earnings CAD 74,600, Second Ceiling CAD 85,000
The Canada Revenue Agency (CRA) announced that the 2026 Year's Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan (CPP) will be CAD 74,600 and the 2026 Year's Additional Maximum Pensionable Earnings (YAMPE), the second earnings ceiling, will be CAD 85,000. The same notice sets the 2027 registered retirement savings plan (RRSP) limit at CAD 35,390.
What changed (effective 2026)
- YMPE, 2026: CAD 74,600 (from CAD 71,300 for 2025)
- YAMPE (second earnings ceiling), 2026: CAD 85,000 (from CAD 81,200 for 2025)
- RRSP limit, 2027: CAD 35,390 (from CAD 33,810 for 2026)
BMO Bank of Montreal Cuts Prime Lending Rate to 4.45% Effective 30 Oct 2025
BMO Bank of Montreal said it is decreasing its Canadian prime lending rate from 4.70% to 4.45%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- BMO prime lending rate: 4.45% from 30 Oct 2025 (from 4.70%)
Company announcement — figures are from BMO Financial Group’s own release, not an official government source.
Bank of Canada Cuts Policy Rate by 25 Basis Points to 2.25%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 2.25% on 29 Oct 2025, with the Bank Rate at 2.5% and the deposit rate at 2.20%. Governing Council cited ongoing weakness in the economy and inflation expected to remain close to the 2% target.
What changed
- Target for the overnight rate: 2.25% (down 25 basis points)
- Bank Rate: 2.5%
- Deposit rate: 2.20%
CIBC Reduces Canadian Prime Lending Rate From 4.70% to 4.45%
CIBC said it is lowering its Canadian prime lending rate by 25 basis points, from 4.70% to 4.45%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- CIBC Canadian prime lending rate: 4.45% from 30 Oct 2025 (from 4.70%)
- Change: down 25 basis points
Company announcement — figures are from Canadian Imperial Bank of Commerce’s own release, not an official government source.
National Bank of Canada Decreases Its Prime Rate to 4.45% From 30 Oct 2025
National Bank of Canada announced a decrease in its prime rate by 25 basis points to 4.45%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- National Bank prime rate: 4.45% from 30 Oct 2025
- Change: down 25 basis points
Company announcement — figures are from National Bank of Canada’s own release, not an official government source.
RBC Royal Bank Lowers Prime Rate to 4.45% From 4.70%
RBC Royal Bank said it is decreasing its prime rate by 25 basis points, from 4.70% to 4.45%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- RBC prime rate: 4.45% from 30 Oct 2025 (from 4.70%)
- Change: down 25 basis points
Company announcement — figures are from Royal Bank of Canada’s own release, not an official government source.
Scotiabank Lowers Prime Lending Rate to 4.45% From 4.70%
Scotiabank said it is decreasing its Canadian prime lending rate to 4.45% from 4.70%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- Scotiabank prime lending rate: 4.45% from 30 Oct 2025 (from 4.70%)
Company announcement — figures are from Bank of Nova Scotia’s own release, not an official government source.
TD Prime Rate Decreased by 25 Basis Points to 4.45%
TD Canada Trust said it has decreased the TD Prime Rate by 25 basis points to 4.45%, effective 30 Oct 2025.
What changed (effective 30 Oct 2025)
- TD Prime Rate: 4.45% from 30 Oct 2025
- Change: down 25 basis points
Company announcement — figures are from TD Bank Group’s own release, not an official government source.
Ontario Proposes 8% Provincial HST Rebate for First-Time Buyers of New Homes up to CAD 1 Million
The Ontario government proposed rebating the full 8% provincial portion of the HST for first-time home buyers of new homes valued up to CAD 1 million, saving up to CAD 80,000 with existing provincial relief, or up to CAD 130,000 combined with the proposed federal rebate. Implementation is subject to passage of federal legislation.
What changed
- New homes up to CAD 1 million: full 8% provincial portion of the HST relieved for first-time buyers, with the existing Ontario HST New Housing Rebate
- Maximum provincial saving: up to CAD 80,000, with existing provincial relief
- Combined with the proposed federal rebate: up to CAD 130,000
- New homes CAD 1 million to CAD 1.5 million: phased reduction, to a minimum of CAD 24,000 for homes valued CAD 1.35 million to CAD 1.5 million
- Purchase agreements covered (proposed): entered into with the builder on or after 27 May 2025 and before 2031
- Status: subject to passage of federal legislation and federal regulatory changes; to be included in the 2025 Fall Economic Statement
Budget 2025 to Introduce Refundable Personal Support Workers Tax Credit of Up to CAD 1,100 a Year
Department of Finance Canada announced that Budget 2025 will introduce a temporary five-year Personal Support Workers Tax Credit, a refundable credit equal to 5% of eligible earnings and worth up to CAD 1,100 per year, for the 2026 to 2030 taxation years in provinces and territories not covered by a bilateral agreement with the federal government to increase personal support worker wages.
What changed (effective 2026)
- Credit: Refundable, equal to 5% of eligible earnings
- Maximum credit: CAD 1,100 per year
- Taxation years: 2026 to 2030
- Provinces and territories with bilateral wage agreements: British Columbia, Newfoundland and Labrador and the Northwest Territories; the credit covers workers in provinces and territories without one
Bank of Canada Cuts Policy Rate by 25 Basis Points to 2.5%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 2.5% on 17 Sep 2025, with the Bank Rate at 2.75% and the deposit rate at 2.45%. Governing Council cited a weaker economy and less upside risk to inflation.
What changed
- Target for the overnight rate: 2.5% (down 25 basis points)
- Bank Rate: 2.75%
- Deposit rate: 2.45%
2026 EI Premium Rate Set at CAD 1.63 per CAD 100; Maximum Insurable Earnings CAD 68,900
The Canada Employment Insurance Commission set the 2026 Employment Insurance (EI) premium rate at CAD 1.63 per CAD 100 of insurable earnings for employees and CAD 2.28 for employers, one cent below the 2025 rate. Maximum insurable earnings rise to CAD 68,900 from CAD 65,700.
What changed (effective 2026)
- Employee premium rate: CAD 1.63 per CAD 100 of insurable earnings (one cent below the 2025 rate)
- Employer premium rate: CAD 2.28 per CAD 100 of insurable earnings
- Maximum insurable earnings: CAD 68,900 (from CAD 65,700)
- Maximum annual employee contribution: CAD 1,123.07 (up CAD 45.59)
- Maximum annual employer contribution: CAD 1,572.30 per employee
- Quebec (QPIP) employee rate: CAD 1.30 per CAD 100 of insurable earnings
CIBC Smart Account Moves to Three Balance-Based Tiers From 1 Nov 2025
CIBC said that from 1 Nov 2025 the CIBC Smart Account will have three tiers set by a client's average monthly balance of eligible deposits and investments with CIBC. The CAD 16.95 monthly account fee is rebated in Tier 1 when a CAD 4,000 minimum end-of-day balance is kept each day, and in Tiers 2 and 3 (CAD 40,000 and over).
What changed (effective 1 Nov 2025)
- Tier 1 (balance up to CAD 39,999.99): CAD 16.95 monthly fee for up to three accounts, unlimited transactions; rebated with a CAD 4,000 minimum end-of-day balance every day
- Tier 2 (CAD 40,000 to CAD 99,999.99): CAD 16.95 fee rebated; credit card annual fee rebate of up to CAD 50 a year for the primary cardholder
- Tier 3 (CAD 100,000 and over): fee rebated; card annual fee rebates up to CAD 139 (primary) and CAD 50 (up to three authorized users); unlimited non-CIBC ATM fee rebates
- Seniors: no account fee for unlimited everyday banking transactions, regardless of deposit and investment balances (new benefit)
- CIBC Everyday Chequing Account (CAD 4.00 a month): 18 everyday banking transactions (from 12) and no fee Interac e-Transfers
Company announcement — figures are from Canadian Imperial Bank of Commerce’s own release, not an official government source.
RBC Waives Day to Day Banking Monthly Fee for First Nations, Inuit and Métis Clients
RBC said the monthly fee for its Day to Day Banking account is now waived for Indigenous clients, based on the identification they provide to an RBC advisor or already have on file. The no monthly fee account includes 12 debit transactions of any kind per month, no minimum balance requirement and unlimited e-Transfers.
What changed
- Day to Day Banking monthly fee (Indigenous clients): waived
- Debit transactions included: 12 of any kind per month
- Minimum balance: none required
- e-Transfers: unlimited
Company announcement — figures are from Royal Bank of Canada’s own release, not an official government source.
Canada Child Benefit for 2025–26: Up to CAD 7,997 per Child Under 6
Employment and Social Development Canada announced that Canada Child Benefit (CCB) amounts increased for the 2025–26 benefit year: up to CAD 7,997 per child under 6 and CAD 6,748 per child aged 6 through 17, about CAD 200 more than the previous year. CCB indexation takes effect each July.
What changed (effective 2025–26)
- Maximum per child under 6: CAD 7,997 a year
- Maximum per child aged 6 through 17: CAD 6,748 a year
- Increase from the previous year: approximately CAD 200
- Benefit year: Jul 2025 to Jun 2026
First-Time Home Buyers' GST Rebate of Up to CAD 50,000 on New Homes Up to CAD 1.5 Million
The Minister of Finance and National Revenue tabled legislative proposals on 27 May 2025 for a First-Time Home Buyers' GST Rebate (FTHB GST Rebate) of up to CAD 50,000: with the existing GST/HST New Housing Rebate, 100% of the GST on new homes up to CAD 1 million, phased out between CAD 1 million and CAD 1.5 million, for purchase agreements signed on or after 27 May 2025 and before 2031.
What changed (effective 27 May 2025)
- New homes up to CAD 1 million: 100% of the GST rebated, with the existing GST/HST New Housing Rebate
- New homes CAD 1 million to CAD 1.5 million: phased out linearly (50% at CAD 1.25 million)
- New homes CAD 1.5 million and above: no FTHB GST Rebate
- Maximum rebate: CAD 50,000 (GST or the federal part of the HST)
- Builder agreements covered: entered into on or after 27 May 2025 and before 2031
- First-time home buyer: at least 18, Canadian citizen or permanent resident, and has not lived in a home they or a spouse owned in the year or the four preceding calendar years
Lowest Federal Income Tax Rate Cut to 14% from 1 Jul 2025
Department of Finance Canada announced that, once legislated, the lowest marginal personal income tax rate falls from 15% to 14% from 1 Jul 2025, giving a full-year rate of 14.5% for 2025 and 14% for 2026 and later years. Two-income families save up to CAD 840 a year in 2026.
What changed (effective 1 Jul 2025)
- Lowest marginal personal income tax rate: 14% from 1 Jul 2025 (from 15%)
- Full-year rate, 2025 tax year: 14.5%
- Full-year rate, 2026 and later: 14%
- Tax withheld at source: at 14% possible from 1 Jul 2025 once CRA updates its source deduction tables
- First bracket, 2025: taxable income of CAD 57,375 and below
- Status: subject to legislation
BC Cancels Climate Action Tax Credit; Final Payment in Apr 2025
The Province of British Columbia (BC) introduced legislation to drop the consumer carbon tax rate to CAD 0 from 1 Apr 2025 and is cancelling the climate action tax credit, with the final payment to be distributed in Apr 2025.
What changed
- Climate action tax credit: cancelled; final payment distributed in Apr 2025
- Consumer carbon tax rate: CAD 0 from 1 Apr 2025 (legislation introduced)
- Fuel: about 17 cents per litre off the cost
- Natural gas home heating: about 15 cents per cubic metre off
- Average carbon tax families would have paid: about CAD 410 in 2025–26
- Carbon tax charged in error on or after 1 Apr 2025: natural gas retailers must provide credits or refunds
BC Removes Consumer Carbon Tax from 1 Apr 2025
The Province of British Columbia (BC) announced it is halting the scheduled carbon tax increase and will table legislation on 31 Mar 2025 to remove the consumer carbon tax, effective 1 Apr 2025. Fuel sellers and natural gas retailers are being notified to stop collecting the tax from consumers as of that date.
What changed (effective 1 Apr 2025)
- Consumer carbon tax: removed, effective 1 Apr 2025
- Scheduled carbon tax increase: halted
- Legislation: to be tabled on 31 Mar 2025
- Fuel sellers and natural gas retailers: to stop collecting the tax from consumers as of 1 Apr 2025
- Large industrial emitters: continue to pay through the output-based carbon pricing system
Consumer Carbon Price Ends 1 Apr 2025; Final Canada Carbon Rebate from 22 Apr 2025
Department of Finance Canada announced regulations that cease the federal fuel charge from 1 Apr 2025, with fuel charge rates set to zero after 31 Mar 2025. Eligible Canadians receive a final Canada Carbon Rebate payment starting 22 Apr 2025; in provinces where the federal fuel charge applied, a family of four receives up to CAD 456 under the base rebate for April 2025.
What changed (effective 1 Apr 2025)
- Federal fuel charge: ceases to apply from 1 Apr 2025 (rates set to zero)
- Provincial consumer carbon price requirement: removed as of 1 Apr 2025
- Canada Carbon Rebate: final payment starting 22 Apr 2025
- Base rebate, family of four (April 2025): up to CAD 456, in provinces where the federal fuel charge applied
- Rural top-up: 20% on top of the base rebate
- Condition for the final rebate: 2024 tax return filed
Proposed Capital Gains Inclusion Rate Increase Cancelled
The Prime Minister of Canada, Mark Carney, announced that the Government of Canada will cancel the proposed increase in the capital gains inclusion rate. The increase in the Lifetime Capital Gains Exemption limit to CAD 1,250,000 on the sale of small business shares and farming and fishing property is maintained, with legislation to follow.
What changed
- Proposed capital gains inclusion rate increase: cancelled
- Lifetime Capital Gains Exemption limit: CAD 1,250,000 (increase maintained; legislation to follow)
Bank of Canada Cuts Policy Rate by 25 Basis Points to 2.75%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 2.75% on 12 Mar 2025, with the Bank Rate at 3% and the deposit rate at 2.70%. Governing Council cited inflation close to the 2% target and uncertainty created by changing US tariff threats.
What changed
- Target for the overnight rate: 2.75% (down 25 basis points)
- Bank Rate: 3%
- Deposit rate: 2.70%
BC Budget 2025: Speculation and Vacancy Tax Rises to 1% and 3% from 1 Jan 2026
British Columbia's (BC) Budget 2025 raises the speculation and vacancy tax from 1 Jan 2026 to 3% (from 2%) of the home's value for foreign owners and untaxed worldwide owners and to 1% (from 0.5%) for Canadian citizens and permanent residents, and lifts the average Rental Assistance Program supplement to CAD 700 a month.
What changed (effective 1 Jan 2026)
- SVT, foreign owners and untaxed worldwide owners: 3% of the home's value (from 2%), from 1 Jan 2026
- SVT, Canadian citizens and permanent residents: 1% (from 0.5%), from 1 Jan 2026
- Rental Assistance Program, average supplement: CAD 700 a month (from CAD 400)
- Rental Assistance Program, income threshold: CAD 60,000 (from CAD 40,000)
- ICBC rebate: one-time CAD 110 for personal and commercial policy holders
Toronto 2025 Budget: 5.4% Residential Property Tax Increase and 1.5% City Building Fund Levy Rise
The City of Toronto's 2025 Budget, deemed adopted on 11 Feb 2025, includes a 5.4% residential property tax increase (CAD 210 a year for the average assessed home of CAD 692,031) and a 1.5% City Building Fund levy increase (an additional CAD 58.37 for the average assessed home). Toronto Water and Solid Waste Management rates rise 3.75%.
What changed (effective 2025)
- Residential property tax: 5.4% increase; CAD 210 a year (about CAD 17.50 a month) for the average assessed home (CAD 692,031)
- City Building Fund levy, residential: 1.5% increase; an additional CAD 58.37 (about CAD 4.86 a month) for the average assessed home
- Toronto Water rates: 3.75% increase; about CAD 39 a year for an average household using 230 cubic metres
- Solid waste, single-family medium bin: CAD 371.91 a year (up CAD 13.44)
- Tax and utility relief programs, income threshold: raised to CAD 60,000 (low-income seniors and people with disabilities)
- TTC fares: frozen
Proposed Capital Gains Inclusion Rate Increase Deferred From 25 Jun 2024 to 1 Jan 2026
Department of Finance Canada announced that the federal government is deferring, from 25 Jun 2024 to 1 Jan 2026, the date on which the capital gains inclusion rate would increase from one-half to two-thirds on individuals' capital gains above CAD 250,000 a year and on all capital gains of corporations and most types of trusts. Legislation is to be introduced in due course.
What changed
- Proposed start date of the inclusion rate increase: 1 Jan 2026 (deferred from 25 Jun 2024)
- Inclusion rate, individuals' gains above CAD 250,000 a year: two-thirds proposed from 1 Jan 2026 (from one-half)
- Inclusion rate, corporations and most types of trusts: two-thirds proposed on all capital gains from 1 Jan 2026 (from one-half)
- Lifetime Capital Gains Exemption: CAD 1.25 million proposed (from CAD 1,016,836), effective 25 Jun 2024; date unchanged
- Canadian Entrepreneurs' Incentive: proposed one-third inclusion rate from the 2025 tax year (date unchanged); lifetime maximum would rise by CAD 400,000 each year, reaching CAD 2 million in 2029
- Principal Residence Exemption: maintained
Bank of Canada Cuts Policy Rate by 25 Basis Points to 3%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 3% on 29 Jan 2025, citing inflation around 2% and the economy in excess supply. It also announced the end of quantitative tightening and set the deposit rate at 5 basis points below the policy rate.
What changed
- Target for the overnight rate: 3% (down 25 basis points)
- Bank Rate: 3.25%
- Deposit rate: 2.95% (set 5 basis points below the policy rate)
- Quantitative tightening: ended; asset purchases to restart in early March
Stress Test Removed for Low-Ratio Mortgage Switches to Any Lender at Renewal
The Department of Finance Canada is amending the mortgage insurance rules to remove the minimum qualifying rate requirement on low-ratio mortgages (loan-to-value up to 80%) that switch from a federally regulated lender to any new lender at renewal, for applications submitted on or after 16 Dec 2024, in line with the Office of the Superintendent of Financial Institutions (OSFI) decision on uninsured mortgages.
What changed (effective 16 Dec 2024)
- Minimum qualifying rate, low-ratio straight switches: removed from 16 Dec 2024
- Loan-to-value covered: up to 80%
- Eligible mortgages: originated at a federally regulated lender and previously assessed against the minimum qualifying rate
- Balance increase allowed at switch: CAD 3,000 for transaction costs such as penalties or fees; no equity take-out
- Amortization: existing contractual schedule must be maintained
Bank of Canada Cuts Policy Rate by 50 Basis Points to 3.25%
The Bank of Canada (BoC) reduced its target for the overnight rate by 50 basis points to 3.25% on 11 Dec 2024, with the Bank Rate at 3.5% and the deposit rate at 3.25%. Governing Council cited inflation around 2%, the economy in excess supply and recent indicators pointing to softer growth than projected.
What changed
- Target for the overnight rate: 3.25% (down 50 basis points)
- Bank Rate: 3.5%
- Deposit rate: 3.25%
GST/HST Break on Groceries and Holiday Essentials, 14 Dec 2024 to 15 Feb 2025
Department of Finance Canada announced that the government will introduce legislation for a two-month GST/HST break, fully and temporarily relieving the tax on holiday essentials such as groceries, restaurant meals, drinks, snacks, children's clothing and gifts from 14 Dec 2024 to 15 Feb 2025.
What changed (effective 14 Dec 2024)
- GST/HST on qualifying goods: fully relieved from 14 Dec 2024 to 15 Feb 2025
- Qualifying goods include: food and beverages, restaurant meals, children's clothing, footwear, diapers and car seats, select toys, print newspapers, printed books, Christmas trees
- Provinces where the HST is also removed: Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island
- Estimated federal tax relief: CAD 1.6 billion
- Status: proposed; legislation to be introduced in Parliament
OSFI Drops Stress Test for Uninsured Mortgage Straight Switches at Renewal
The Office of the Superintendent of Financial Institutions (OSFI) no longer requires a set minimum qualifying rate (MQR) when an uninsured mortgage switches from one federally regulated lender to another at renewal with no increase to the amortization period or loan amount, effective 21 Nov 2024. OSFI said new loan-to-income (LTI) limits on uninsured mortgage portfolios took effect in each lender's fiscal year 2025.
What changed (effective 21 Nov 2024)
- Minimum qualifying rate, uninsured straight switches: no longer required from 21 Nov 2024
- Straight-switch conditions: no increase to the amortization period or the loan amount
- Loan-to-income (LTI) limits, uninsured portfolios: from each lender's fiscal year 2025; largest lenders from 1 Nov 2024, all others by Jan 2025
CPP for 2025: Maximum Pensionable Earnings CAD 71,300, Second Ceiling CAD 81,200
The Canada Revenue Agency announced that the 2025 Year's Maximum Pensionable Earnings (YMPE) is CAD 71,300, up from CAD 68,500, with CPP contribution rates unchanged at 5.95% and a maximum contribution of CAD 4,034.10 each for employees and employers. The second ceiling (YAMPE) is CAD 81,200, with CPP2 contributions at 4% up to CAD 396 each.
What changed (effective 2025)
- Year's Maximum Pensionable Earnings (YMPE): CAD 71,300 (from CAD 68,500)
- Year's Additional Maximum Pensionable Earnings (YAMPE): CAD 81,200 (from CAD 73,200)
- Maximum CPP contribution, employee and employer: CAD 4,034.10 each (from CAD 3,867.50), rate unchanged at 5.95%
- Maximum CPP2 contribution, employee and employer: CAD 396 each (from CAD 188), rate unchanged at 4%
- Self-employed maximums: CPP CAD 8,068.20 (from CAD 7,735); CPP2 CAD 792 (from CAD 376)
- Basic exemption amount: unchanged at CAD 3,500
Ontario Proposes CAD 200 Taxpayer Rebate Plus CAD 200 for Each Eligible Child
The Ontario government proposed, as part of the upcoming 2024 Ontario Economic Outlook and Fiscal Review, a tax-free CAD 200 taxpayer rebate for all eligible Ontario taxpayers plus CAD 200 for each eligible child under 18, with cheques to be mailed in early 2025.
What changed
- Taxpayer rebate (proposed): CAD 200, tax-free, for each eligible adult
- Adult eligibility: 18 or older at the end of 2023, Ontario resident on 31 Dec 2023, 2023 return filed by 31 Dec 2024, not bankrupt or incarcerated in 2024
- Children: an additional CAD 200 for each eligible child under 18, paid to the person who receives the Canada Child Benefit (CCB) for the child
- Payment: cheques mailed from early 2025
- Example: CAD 1,000 for an eligible family of five with two adults and three children
- Total: about CAD 3 billion for approximately 12.5 million adults and 2.5 million children
Bank of Canada Cuts Policy Rate by 50 Basis Points to 3.75%
The Bank of Canada (BoC) reduced its target for the overnight rate by 50 basis points to 3.75% on 23 Oct 2024, with the Bank Rate at 4% and the deposit rate at 3.75%. With inflation back around the 2% target, Governing Council said the cut was to support economic growth and keep inflation close to the middle of the 1% to 3% range.
What changed
- Target for the overnight rate: 3.75% (down 50 basis points)
- Bank Rate: 4%
- Deposit rate: 3.75%
Insured Refinancing to Add Secondary Suites Available from 15 Jan 2025
The Department of Finance Canada released the details of a new insured mortgage refinancing product for homeowners adding secondary suites, such as basement suites or laneway homes, for mortgage insurance applications submitted on or after 15 Jan 2025. The new units must be self-contained, meet municipal zoning and not be used as short-term rentals.
What changed (effective 15 Jan 2025)
- Insured refinancing to build secondary suites: available for applications submitted on or after 15 Jan 2025
- Maximum property value (as improved): less than CAD 2 million
- Maximum loan-to-value: 90% of the property value, including the value added by the suites
- Maximum amortization: 30 years
- Maximum dwelling units: four, including the existing unit
Insured Mortgage Price Cap Rises to CAD 1.5 Million; 30-Year Amortizations Widened
The Department of Finance Canada announced that from 15 Dec 2024 the price cap for insured mortgages rises from CAD 1 million to CAD 1.5 million, and 30-year insured amortizations extend to all first-time home buyers and all buyers of new builds. The government said it will bring forward regulatory amendments to implement the changes.
What changed (effective 15 Dec 2024)
- Insured mortgage price cap: CAD 1.5 million from 15 Dec 2024 (from CAD 1 million)
- 30-year insured amortization eligibility: all first-time home buyers and all buyers of new builds, from 15 Dec 2024
2025 EI Premium Rate Set at CAD 1.64 per CAD 100 of Insurable Earnings
The Canada Employment Insurance Commission set the 2025 Employment Insurance (EI) premium rate at CAD 1.64 per CAD 100 of insurable earnings for employees and CAD 2.30 for employers, down from CAD 1.66 and CAD 2.32 in 2024. Maximum insurable earnings rise to CAD 65,700 from CAD 63,200.
What changed (effective 2025)
- Employee premium rate: CAD 1.64 per CAD 100 of insurable earnings (from CAD 1.66)
- Employer premium rate: CAD 2.30 per CAD 100 of insurable earnings (from CAD 2.32)
- Maximum insurable earnings: CAD 65,700 (from CAD 63,200)
- Maximum annual employee contribution: CAD 1,077.48 (up CAD 28.36)
- Quebec (QPIP) employee rate: CAD 1.31 per CAD 100 of insurable earnings
Bank of Canada Cuts Policy Rate by 25 Basis Points to 4.25%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 4.25% on 4 Sep 2024, with the Bank Rate at 4.5% and the deposit rate at 4.25%. Governing Council cited continued easing in broad inflationary pressures.
What changed
- Target for the overnight rate: 4.25% (down 25 basis points)
- Bank Rate: 4.5%
- Deposit rate: 4.25%
Bank of Canada Cuts Policy Rate by 25 Basis Points to 4.5%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 4.5% on 24 Jul 2024, with the Bank Rate at 4.75% and the deposit rate at 4.5%. Governing Council cited broad price pressures continuing to ease.
What changed
- Target for the overnight rate: 4.5% (down 25 basis points)
- Bank Rate: 4.75%
- Deposit rate: 4.5%
Canada Child Benefit Rises 4.7% for 2024–25 to Up to CAD 7,787 per Child Under 6
Employment and Social Development Canada announced that the maximum Canada Child Benefit (CCB) rises 4.7% for the 2024–25 benefit year: up to CAD 7,787 per child under 6 and CAD 6,570 per child aged 6 through 17, up to CAD 350 more than the previous year. CCB indexation takes effect each July.
What changed (effective 2024–25)
- Maximum per child under 6: CAD 7,787 a year
- Maximum per child aged 6 through 17: CAD 6,570 a year
- Increase from the previous year: 4.7%, up to CAD 350 more
- Benefit year: Jul 2024 to Jun 2025
Bank of Canada Cuts Policy Rate by 25 Basis Points to 4.75%
The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 4.75% on 5 Jun 2024, with the Bank Rate at 5% and the deposit rate at 4.75%. Governing Council said continued evidence that underlying inflation is easing meant monetary policy no longer needs to be as restrictive.
What changed
- Target for the overnight rate: 4.75% (down 25 basis points)
- Bank Rate: 5%
- Deposit rate: 4.75%
CMHC Adds 20 Basis-Point Premium Surcharge on 30-Year First-Time Buyer Mortgages
Canada Mortgage and Housing Corporation (CMHC) announced that from 1 Aug 2024 a mortgage loan insurance premium surcharge of 20 basis points applies to qualified first-time home buyers who opt for a 30-year amortization, following the Government of Canada's announcement allowing 30-year amortizations for first-time buyers of newly constructed homes.
What changed (effective 1 Aug 2024)
- Premium surcharge, 30-year amortization: 20 basis points from 1 Aug 2024 (qualified first-time home buyers)
Budget 2024 Proposes Two-Thirds Capital Gains Inclusion Rate Above CAD 250,000 a Year
Department of Finance Canada announced in Budget 2024 a proposal to raise the capital gains inclusion rate from one-half to two-thirds on individuals' capital gains above CAD 250,000 a year and on all capital gains of corporations and trusts, for gains realized on or after 25 Jun 2024. Gains up to CAD 250,000 a year stay at the 50% inclusion rate.
What changed
- Inclusion rate, individuals' gains above CAD 250,000 a year: two-thirds proposed (from one-half)
- Inclusion rate, individuals' gains up to CAD 250,000: unchanged at 50%
- Inclusion rate, corporations and trusts: two-thirds proposed on all capital gains
- Lifetime Capital Gains Exemption: CAD 1.25 million proposed (from about CAD 1 million), from 25 Jun 2024
- Principal residence: remains exempt from capital gains taxation
- Status: proposed in Budget 2024, for gains realized on or after 25 Jun 2024
Budget 2024 to Raise Home Buyers' Plan Limit to CAD 60,000 from CAD 35,000
Department of Finance Canada announced that Budget 2024, to be tabled on 16 Apr 2024, will propose raising the Home Buyers' Plan (HBP) limit from CAD 35,000 to CAD 60,000, so first-time home buyers can use the tax benefits of RRSP contributions to save up to CAD 25,000 more for a down payment.
What changed
- Home Buyers' Plan (HBP) limit: CAD 60,000 (from CAD 35,000)
- Extra down-payment savings using RRSP contributions: up to CAD 25,000 more
- HBP repayment grace period: extended by three years for withdrawals between 1 Jan 2022 and 31 Dec 2025, to up to five years before repayments start
- Status: to be proposed in Budget 2024, tabled 16 Apr 2024
30-Year Insured Amortizations for First-Time Buyers of New Builds from 1 Aug 2024
The Department of Finance Canada announced that, in Budget 2024, the government will allow 30-year mortgage amortizations for first-time home buyers purchasing newly built homes, effective 1 Aug 2024, extending the insured-mortgage amortization limit by five years for these buyers. Canadian Mortgage Charter enhancements will also set an expectation of permanent amortization relief for eligible existing homeowners.
What changed (effective 1 Aug 2024)
- Insured amortization, first-time buyers of new builds: up to 30 years from 1 Aug 2024 (limit extended by five years)
- Canadian Mortgage Charter: expectation that, where appropriate, permanent amortization relief is made available to eligible existing homeowners
BC Budget 2024: First-Time Buyer Transfer Tax Threshold to CAD 835,000; Home-Flipping Tax from 2025
The Province of British Columbia (BC) announced in Budget 2024 that first-time buyers can qualify for the First Time Home Buyers' Program on homes worth up to CAD 835,000, with the first CAD 500,000 exempt from property transfer tax, and introduced the BC Home Flipping Tax, effective 1 Jan 2025.
What changed
- First Time Home Buyers' Program, home value limit: CAD 835,000; the first CAD 500,000 exempt from property transfer tax; savings of as much as CAD 8,000
- Newly built home exemption: homes worth up to CAD 1.1 million
- Purpose-built rental buildings of four or more units: property transfer tax exemption until 2030
- BC Home Flipping Tax: a tax on the profit from selling a residential property within two years of buying it, effective 1 Jan 2025
- Home-flipping tax exemptions: specific life circumstances, such as divorce, death, illness and relocation for work
Toronto 2024 Budget: 8% Residential Property Tax Increase and 1.5% City Building Fund Levy Rise
The City of Toronto's 2024 Budget, deemed adopted on 14 Feb 2024, includes an 8% residential property tax increase (CAD 285 a year for the average assessed home) and a 1.5% City Building Fund levy increase for residential properties (an additional CAD 53 for the average assessed home).
What changed (effective 2024)
- Residential property tax: 8% increase; CAD 285 a year (CAD 23.75 a month) for the average assessed home
- City Building Fund levy, residential: 1.5% increase; an additional CAD 53 (CAD 4.42 a month) for the average assessed home
- Multi-residential base property tax: 2.95% increase
- City Building Fund levy, multi-residential: 0.55% increase
- TTC fares: frozen
- Property Tax, Water & Solid Waste Relief Programs: deferral or cancellation of property tax increases for eligible low-income residents; applications open spring 2024
Federal Ban on Foreign Ownership of Canadian Housing to Be Extended Two Years to 1 Jan 2027
Department of Finance Canada announced the federal government's intent to extend the ban on foreign ownership of Canadian housing by an additional two years: the ban, set to expire on 1 Jan 2025, will be extended to 1 Jan 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from purchasing residential property in Canada.
What changed
- Ban end date: 1 Jan 2027 (from 1 Jan 2025)
- Who is prohibited: Foreign commercial enterprises and people who are not Canadian citizens or permanent residents
- Legislation: Prohibition on the Purchase of Residential Property by Non-Canadians Act, passed in 2022
CPP2 Begins 1 Jan 2024: 4% Each on 2024 Earnings Between CAD 68,500 and CAD 73,200
The Canada Revenue Agency (CRA) announced that second additional Canada Pension Plan contributions (CPP2) start in 2024, at 4.00% each for employees and employers and 8.00% for the self-employed, on pensionable earnings between CAD 68,500 and a second earnings ceiling of CAD 73,200. The employee and employer CPP contribution rate remains 5.95%.
What changed (effective 1 Jan 2024)
- CPP2 contribution rate, employees and employers: 4.00% each on pensionable earnings between CAD 68,500 and CAD 73,200
- CPP2 maximum contribution, employees and employers: CAD 188.00 each
- CPP2 self-employed rate: 8.00%, maximum contribution CAD 376.00
- Maximum pensionable earnings, 2024: CAD 68,500 (from CAD 66,600 in 2023)
- Second earnings ceiling, 2024: CAD 73,200; no contributions on pensionable earnings above it
- CPP contribution rate, employees and employers: Unchanged at 5.95%; maximum contribution CAD 3,867.50 each (from CAD 3,754.45)
Tax-Free First Home Savings Account: CAD 8,000 a Year up to a CAD 40,000 Lifetime Limit
Department of Finance Canada set out the tax-free First Home Savings Account (FHSA), which financial institutions have been able to offer since 1 Apr 2023. Eligible first-time home buyers can contribute up to CAD 8,000 per year, up to a lifetime limit of CAD 40,000 within 15 years; contributions are tax deductible and withdrawals to purchase a first home are non-taxable.
What changed (effective 1 Apr 2023)
- Annual contribution limit: CAD 8,000 per year
- Lifetime contribution limit: CAD 40,000, within 15 years of opening the account
- Contributions: Tax deductible on annual income tax returns, like a Registered Retirement Savings Plan (RRSP)
- Withdrawals to purchase a first home: Non-taxable, including any investment income on contributions
- Who can open an FHSA: Canadian residents at least 18 and not more than 71 years of age on 31 Dec of the year, saving for their first home
- Unused contribution room: Can be carried forward, up to the CAD 8,000 annual maximum
Luxury Tax Applies to Vehicles Priced Above CAD 100,000 From 1 Sep 2022
The Canada Revenue Agency (CRA) set out how the luxury tax under the Select Luxury Items Tax Act, in effect from 1 Sep 2022, applies to vehicles priced above the CAD 100,000 price threshold. The tax is the lesser of 10% of the taxable amount of the vehicle and 20% of the amount above the price threshold.
What changed (effective 1 Sep 2022)
- Price threshold: Subject vehicles priced or valued above CAD 100,000
- Tax calculation: Lesser of 10% of the taxable amount and 20% of the amount above CAD 100,000
- Subject vehicles: Examples include sedans, coupes, hatchbacks, convertibles, sport utility vehicles and light-duty pickup trucks; conditions include manufacture after 2018
- Previously registered vehicles: In most cases not subject to the luxury tax on resale
- Legislation: Select Luxury Items Tax Act, in Bill C-19, which received royal assent on 23 Jun 2022
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