2027 Tax Year Changes in Canada: 10 Things to Know

Your 2027 tax return could look very different from the one you file next spring. Budget 2026, tabled on November 5, 2026, includes a long list of changes that start with the 2027 tax year. Some claims that used to need a pile of receipts may soon need just one flat number. Some credits could pay you even if you owe no tax.

The 2027 tax year runs from January 1 to December 31, 2027, and you file that return in 2028. These changes are proposals for now and still need to pass Parliament. But the earlier you know, the better you can plan. Here are ten changes to watch.

1. Your deadline moves to May 15

Starting with the 2027 tax year, there would be one date to file and pay: May 15. Right now, most people pay by April 30, and self employed people file by June 15 but still pay by April 30. Under the new rule, your 2027 return would be due May 15, 2028.

2. Flat amount claims make tax time simpler

This is my favourite part of the budget. A flat amount is a set number you can claim, so you do not have to add up every receipt. Many people skip claims because the paperwork feels like too much. Flat amounts make it easier to claim what you are owed.

Moving expenses: an optional flat claim of $1,000. You can still claim your actual costs if they are higher.
Home Accessibility Tax Credit: a one time flat claim of $1,000. This credit helps seniors and people with disabilities make their homes safer.
Adoption expenses: a flat claim of $1,200 per child.
Labour Mobility Deduction: a flat $1,500 a year for tradespeople who travel for work.

My tip: keep your receipts anyway until the final rules are released. If your real costs are higher, you want the proof.

3. Medical expense flat amounts

The budget adds flat amounts for some medical expenses too. You could claim a flat $2,000 for a service dog and a flat $500 for incontinence products starting in 2027. If you have celiac disease, you could claim a flat $1,000 for gluten free food, and that one starts even sooner, with the 2026 tax year. Tracking the extra cost of gluten free food has always been a headache, so this is a welcome change.

4. The Canada Caregiver Credit becomes refundable

Today, the Canada Caregiver Credit only helps if you owe tax. Starting in 2027, it becomes refundable, so you can receive the money even if you owe nothing. For 2027, it is worth up to $1,260 for some caregivers.

If you care for a parent, a spouse or an adult child with an impairment, make sure you have the paperwork that shows the impairment. If you are not sure your family member qualifies, ask your accountant before you file.

5. The Build Canada Workers Benefit

The Canada Workers Benefit becomes the Build Canada Workers Benefit. For 2027, the maximum is $1,859 for a single person and $3,143 for a family. You start to qualify after just $500 of work income. Advance payments drop to 25% in 2027 and end in 2028, so plan for more of it at tax time. Remember, you must file your tax return to receive it, even if you earned very little.

6. One credit for volunteer firefighters and search and rescue

If you are a volunteer firefighter or a search and rescue volunteer, the two credits would become one. The new credit is 14% of $6,000, which is up to $840 off your federal tax.

7. Bigger northern residents deductions

For people living in northern Canada, the budget removes the limits on the northern residency deductions. It also removes the $1,200 limit on the standard amount for the travel deduction. If you live up north, that could mean a bigger deduction.

8. Help for employed artists and commission employees

Employed artists would no longer face the $1,000 cap on employment expenses, and the rules for commission employees get simpler.

9. A higher limit for foreign property reporting

Today, you must file Form T1135 if you own foreign property costing more than $100,000, such as foreign bank accounts or foreign shares. The budget doubles that limit to $200,000 for tax years ending after 2026. The simplified version of the form would be available if your foreign property costs less than $500,000, up from $250,000.

The penalties for missing this form can be steep. If you are close to the limit, keep a list of what you own and what you paid for it.

10. A permanent RDSP family rule

For families using a Registered Disability Savings Plan, the rule that lets a qualifying family member open the plan for an adult who cannot enter a contract would become permanent.

What business owners should watch in 2027

The higher T1135 limit applies to corporations too. Check whether your company still needs to file.
If you sell eligible small business shares on or after January 1, 2027, you would have the year of sale plus three more calendar years to reinvest in new shares and defer the gain.
Farm families: the intergenerational farm rollover would extend to nieces and nephews for transfers on or after January 1, 2027.
Your personal return as an owner moves to May 15 as well.

Your 2027 checklist

Mark May 15, 2028 on your calendar.
Keep your receipts until the final flat amount rules are released.
Confirm caregiver paperwork for any family member you support.
File every year, even with low income, to receive benefits.
Review your foreign property and small business share plans.

Change can feel like a lot. But most of these changes make your taxes simpler, and many put more money in your pocket.

Watch the video

I cover all ten changes in my YouTube video, New Changes for the 2027 Tax Year: Are You Ready? Missed the big picture? Read my article Budget 2026: 8 Tax Changes Every Canadian Should Know.

We show up for our clients

Our team can help you get ready for 2027, whether you file a personal return or run a corporation. Book a consultation with Major Tax & Accounting, CPA at www.majortaxaccounting.ca.

This article is for general information only and is not tax, legal or financial advice. Budget measures are proposals until Parliament passes them, and the final rules may change. Speak with a professional about your own situation.