COVER STORY
Budget 2026 Arrives This Week
What Taxpayers Should Watch
A practical guide to the tax announcements, effective dates and legislative status behind the headlines
The budget arrives on 5 November, but the details will determine the result
The federal government will table Budget 2026 on Thursday, 5 November. Tax measures may affect individuals, families, homeowners, investors and businesses, but a budget announcement does not always create an immediate change in law.
For every announcement, confirm who qualifies, what transaction is covered, when the rule begins and whether legislation or CRA guidance is still required.
Four questions to answer
AREA | WHO MAY BE AFFECTED | DETAIL TO VERIFY | STATUS TO CHECK |
|---|---|---|---|
Personal tax | Individuals and families | Thresholds and claim method | Proposal or enacted |
Housing | Buyers, owners and renters | Property and transaction date | Start date |
Business | Corporations and owners | Eligible cost or investment | Legislation required |
Do not make a major transaction based only on a speech, headline or social-media summary. Read the detailed tax documents and confirm the effective date.
How to Read Budget 2026 Without Acting Too Soon
Personal income tax and benefits
Review any changes to tax brackets, rates, credits and income-tested benefits. A headline amount may be subject to family-income thresholds, residency conditions or a separate application.
Housing and household affordability
Confirm whether a housing measure applies to an existing home, new construction, rental property or first-time buyer. The agreement date, closing date and intended use may each matter.
• Identify the eligible property or expenditure.
• Check purchase, completion and occupancy dates.
• Retain agreements, invoices and proof of payment.
Housing announcements often use familiar labels while applying only to a narrow category of transaction. Read the definitions before relying on the measure.
Business investment and deductions
Business owners should review proposed deductions, investment credits, capital-cost allowance and productivity measures against planned purchases and the corporation's taxation year.
Do not accelerate an acquisition until eligibility, available-for-use rules, related-party restrictions and the effective date have been confirmed.
Administration and CRA implementation
• Does the measure require a new form or election?
• Will CRA administer it before legislation passes?
• Is a separate application required?
• What records must be retained?
A proposal can change during the legislative process. Track the measure through draft legislation, parliamentary approval and CRA guidance.
What readers should do this week
• List major transactions planned before year-end.
• Keep purchase, investment and housing records current.
• Compare the proposal with existing law.
• Obtain advice before changing a significant plan.
BOTTOM LINE
Budget headlines start the analysis; they do not finish it. Confirm eligibility, effective dates and legal status before changing a tax, investment, housing or business plan.
This Week in Canadian Tax
Corporate Tax
Expanded SR&ED rules may increase corporate tax support
For taxation years beginning after 15 December 2024, the expenditure limit for the enhanced 35% SR&ED investment tax credit increased from $3 million to $6 million. The taxable-capital phase-out now extends from $15 million to $75 million.
Eligible Canadian public corporations may now access the enhanced credit, and eligible SR&ED capital expenditures made after 15 December 2024 can be claimed under the revised rules.
Review current projects, capital purchases and updated Form T661 and T2 Schedule 31. Technical eligibility and expenditure support remain separate requirements.
Personal Tax
CRA adds more debit-based online payment options
The CRA's My Payment service now supports Apple Pay, Google Pay and Konek, in addition to Visa Debit and Debit Mastercard. The options rely on eligible debit cards or linked Canadian bank accounts; ordinary credit cards are not accepted through My Payment.
A payment is usually dated the same business day, but one completed after 10 p.m., on a weekend or on a statutory holiday may be dated the next business day. It can take up to three business days to appear in a CRA account.
Confirm the tax program, period and amount before submitting. Check the bank's transaction limit and retain the confirmation until the payment is posted.
IMPORTANT DEADLINE
16 November 2026 | Regular payroll remittance
Regular remitters must send income tax, CPP and EI deducted from October payroll by Monday, 16 November. The normal 15 November date falls on Sunday. Accelerated and quarterly remitters follow different schedules; confirm the employer's assigned remitter type.
THIS WEEK'S CHECK | Review Budget 2026 details, reassess SR&ED eligibility and prepare the 16 November payroll remittance.
Tax Court Highlight
SHARMA v. THE KING, 2026 TCC 182
A T2200 did not make every
sales expense deductible
The claimed expense still had to be required by the employment arrangement and supported by evidence.
$563,900
SUBCONTRACTOR FEES CLAIMED
ALL DISALLOWED
T2200 WAS NOT ENOUGH
The facts
A commissioned insurance salesperson claimed large subcontractor fees for sales leads, including amounts paid to family members and a spouse-controlled corporation. He also claimed $7,350 of advertising costs.
The Court's decision
The Court held that the particular type of expense must be expressly or implicitly required under the employment arrangement. The employer did not require bulk lead purchases, outside lead generators or an assistant.
• The subcontractor fees were disallowed.
• The T2200 said an assistant was not required.
• Advertising was potentially eligible in type.
• The advertising amount failed for lack of proof.
Why the decision matters
A T2200 supports an employment-expense claim, but it is not blanket approval. The form, employment agreement and actual workplace expectations should align with each category claimed.
• Document why the employer requires each expense.
• Keep invoices, payment records and purchased materials.
• Record the services behind related-party payments.
• Confirm the business purpose and reasonableness.
The expense must be both required and proven.
Action list
• Review Budget 2026 proposals and effective dates.
• List major transactions planned before year-end.
• Reassess SR&ED projects under the expanded rules.
• Prepare the 16 November payroll remittance.
• Retain confirmations for CRA online payments.
• Match employment-expense claims to the T2200.