Federal Budget 2026 for Doctors, Dentists and Healthcare Clinics

Reviewed by HJ Wu & Company Inc. (CPA) on November 5, 2026. Editorial policy. General information, not advice.

Federal Budget 2026 for doctors, dentists and healthcare clinics

• Equipment: the budget specifically says the Productivity Mega Deduction will help health professionals who own their practice invest in medical equipment and diagnostic technology. If you are planning a purchase, talk to us first.
• Individual pension plans (IPPs): if you or your professional corporation has an IPP, the budget tightens the rules. From January 1, 2028, an IPP whose assets exceed 200% of its pension liabilities would become a “revocable plan”, and a CRA revocation would carry a 10% special tax. Ask us how your plan is funded.
• Not included in the new startup exemption: the Canada Growth Incentive excludes the professional practices of physicians and other health care practitioners.
• Massage therapy: qualifying massage therapy services would become exempt from GST/HST for services supplied after November 5, 2026. In plain terms, massage therapists would generally stop charging GST on those services (where a licence or certification is required, the therapist needs to hold it). Exempt is not the same as zero-rated: you generally can’t claim back the GST you pay on rent, supplies and equipment. If you are registered for GST today, talk to us about what this means for your registration, pricing and books. The change is proposed, so watch for the legislation.
• Cancer therapy devices: devices for alternating electric field therapy would be zero-rated for GST/HST.
• Patients’ medical expense claims: from 2026, some expenses incurred only for medical purposes would no longer need a prescription, and an optional flat $1,000 would be available for the extra cost of a gluten-free diet (celiac disease). From 2027, optional flat amounts of $2,000 a year for service dog expenses (not counting the purchase) and $500 for incontinence products. Your patients may ask you for certification.
• Funding: $1.2 billion in 2027-28 to extend federal mental health, addictions and home and community care agreements with the provinces to March 31, 2028; $100 million over two years for the Emergency Treatment Fund; and a government review of the 39 recommendations of the pharmaceutical and life sciences task force.
• Not changed: BC’s Employer Health Tax is provincial, so this federal budget does not change it. Read our Employer Health Tax guide and GST guide for BC health practitioners.

See also our healthcare accounting page.

More on Budget 2026

• Budget 2026 hub: summary, key numbers and dates
• For business owners
• For lawyers and law firms
• For doctors, dentists and clinics
• For individuals and families
• The official budget at budget.canada.ca

Key takeaway: Equipment write-off, GST/HST changes for massage therapy, simpler patient medical expense claims and federal health funding.

Official sources

• Budget 2026: Masters of our destiny (budget.canada.ca)
• Department of Finance Canada
• Canada Revenue Agency

Reviewed November 5, 2026. This is general information, not legal or tax advice. Rules and rates change, so confirm current requirements with the official sources above and speak to the firm about your situation.