Canada's federal budget came out on November 5, 2026. Start here for a plain-language summary and the key numbers, then pick your section: business owners, lawyers, healthcare, or individuals and families. We will add detail as we go deeper.
Budget 2026 at a glance
Figures from Budget 2026, Annex 1 and chapters 1 and 3, and the Employment Insurance outlook. See budget.canada.ca.
The budget in 60 seconds
- Big theme: the government calls it “Masters of our destiny”: build the economy, help with the cost of living now, and keep spending growth low.
- Deficit: $62.3 billion in 2026-27 (1.8% of the economy), easing to $52.9 billion by 2030-31. The government says day-to-day operating spending will be balanced by 2027-28, one year earlier than planned.
- For businesses: the biggest change is the Productivity Mega Deduction. Most new equipment, software and similar investments bought on or after September 15, 2026 can be written off in full right away, permanently.
- For lawyers and health professionals: the equipment write-off can help your practice. The new capital gains exemption for startups, however, does not cover professional practices of lawyers or health care practitioners.
- For families: a one-time extra payment of the Canada Groceries and Essentials Benefit in early 2027, a bigger Build Canada Workers Benefit, and a refundable Canada Caregiver Credit.
- Tax filing: the government proposes moving the personal tax filing and payment date to May 15 for everyone, including the self-employed, starting with the 2027 tax year. Your 2026 return is still due on the current dates.
Pick your section
The big picture
The government says it is holding spending growth to under 2% a year (compared with over 8% a year in the last decade), shrinking the federal public service by about 10%, and still investing for growth. It describes Canada as having the lowest net debt to GDP in the G7.
| Budget balance | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 |
|---|---|---|---|---|---|---|
| Deficit ($ billions) | 39.3 | 62.3 | 62.5 | 57.6 | 53.4 | 52.9 |
| As a share of the economy | 1.2% | 1.8% | 1.8% | 1.6% | 1.4% | 1.3% |
Federal debt stays at roughly 40% of GDP over the period. The new measures in this budget add about $15 billion to the deficit this year and $30 to $34 billion a year after that. Capital investment (including the cost of the new tax write-off) is projected to more than double, from $37.4 billion in 2025-26 to $78.2 billion by 2030-31. Source: Budget 2026, Annex 1.
What it means in BC
- BC payroll tax is unchanged: the Employer Health Tax is provincial, so this federal budget does not change it. See our Employer Health Tax guide.
- EI premiums: the 2027 rate is $1.64 per $100 of insurable earnings (announced September 14, 2026), projected to ease to $1.63 in 2028. That affects BC employers and employees.
- Federal-BC agreement: the budget’s timeline lists the Canada-British Columbia Cooperative Prosperity Agreement, signed July 2, 2026.
- Electricity: the $50 billion National Electricity Strategy includes new transmission on the North Coast of BC.
- Infrastructure: the budget’s funding tables include $300 million a year for the George Massey Crossing Project. We are still reading the details.
- Your BC taxes: BC personal and sales tax rules are set by the province. See our guides on BC personal income tax and PST changes.
Key dates at a glance
| When | What |
|---|---|
| Sept. 15, 2026 | Productivity Mega Deduction applies to eligible assets acquired on or after this date (announced in September) |
| After Budget Day (Nov. 5, 2026) | Massage therapy GST/HST exemption; exempt taxable preferred share dividends of CCPCs; Growth Incentive covers shares issued from Budget Day |
| Early 2027 | One-time Groceries and Essentials Benefit supplement |
| Jan. 1, 2027 | Small business rollover changes start for qualifying sales |
| Dec. 31, 2026 | Deadline for comments on strengthening the Common Reporting Standard rules |
| Jan. 8, 2027 | Deadline for comments on the RRSP-for-life proposal, the broader preferred share regime and corporate loss transfers |
| End of Jan. / Mar. 2027 | Fuel excise relief ends, then half rates, then full rates on April 1, 2027 |
| 2027 tax year | Build Canada Workers Benefit, refundable caregiver credit, flat-amount claims, and May 15 filing date |
| 2028 tax year | Higher instalment threshold and single annual instalment for business income |
What happens next
A budget sets out what the government plans to do. The tax changes become law only after Parliament passes legislation, and the final rules can differ from the proposals. The budget also includes draft legislation and Notices of Ways and Means Motions that give more detail. Some items, such as the Canada Creative Credit and the RRSP changes, are intentions and consultations, not finished rules. We will update this page as we dig into the details, so check back.
Budget words in plain language
- Deficit
- What the government spends beyond what it collects in a year.
- Day-to-day operating balance
- Everyday spending compared with revenue, before counting investments that build assets. The government aims to balance this by 2027-28.
- Productivity Mega Deduction
- A tax rule that lets businesses deduct the full cost of most new investments right away.
- CCPC
- A Canadian-controlled private corporation, which is what most small and mid-size Canadian companies are.
- Refundable credit
- A tax credit you can receive in full even if you owe no tax.
- Instalments
- Advance tax payments through the year, instead of one bill at filing time.
- Notice of Ways and Means Motion
- A formal notice that tax changes are coming to Parliament. It is a step toward legislation, not the law itself.
- Royal Assent
- The final approval that makes a bill law.
- Consultation
- A period where the government asks for comments before it decides the details.
Read the budget and official information
- The full Budget 2026 document, summaries and the online Impacts Report are available at budget.canada.ca.
- Department of Finance Canada: canada.ca/en/department-finance.
- Canada Revenue Agency: canada.ca/en/revenue-agency.
- Our own year-end tax planning guide and the free business planners and calculators.
Ask us a question about the budget
Got a question about how Budget 2026 could affect you, your practice or your business? Send it here. We’ll read every one, it helps us decide what to cover as we go deeper, and we’ll send a copy of your question to your email. This form is for general questions only, so please don’t include account numbers or other private details.
Prefer to talk it through? Call 604-636-1862 or email inquiry@hjwucpa.com to book an initial consultation.
Key takeaway: The hub for our Budget 2026 coverage: the key numbers, a 60-second summary, what it means in BC, key dates, a plain-language glossary and links to the official budget.
Official sources
- Budget 2026: Masters of our destiny (budget.canada.ca)
- Department of Finance Canada
- Canada Revenue Agency
Reviewed . 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.
Prepared by HJ Wu & Company Inc. (CPA), led by Amy Wu, CPA, CGA, CPA (ND), MBA, BSc. General information only, not personal advice. How the guides are written and reviewed.
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