2026 Tax Season Tips for Canadians
As income tax return deadlines approach once again, many Canadians feel overwhelmed and stressed about filing their taxes. However, with the right tax tips and strategies, tax season can be far less stressful. Whether you’re a first-time filer or a seasoned tax veteran, there are practical ways to simplify the process and stay organized.
We’ll break down what to expect for the 2026 tax season, plus some common deductions and credits often overlooked. We’ll also cover key dates to ensure you file on time with the Canada Revenue Agency (CRA), avoid last-minute stress, and avoid costly penalties for missing the filing deadline.
Key Takeaways
- The tax deadline is April 30, 2026, for most Canadians and June 15, 2026, for self-employed individuals.
- Filing your tax return on time helps you avoid penalties and access government benefits.
- Staying current with tax filings and paying any outstanding taxes is essential for mortgage approval.
When Can I File My Taxes?
Canadians can start filing their tax returns as early as February 23rd. You’ll have until April 30th to complete and file a return for the 2025 tax year. Canadians who do not expect a refund must pay any taxes owing to the CRA by April 30th.
Self-employed Canadians and their spouses or common-law partners have until June 15th to file their personal income tax returns, but interest applies on amounts owing after April 30th. If you own an incorporated business, you’ll have up to 180 days after your fiscal year end to file corporate income taxes, but any taxes owed are due 90 days from the business’s fiscal year end.
Automatic Tax-Filing for Lower Income Individuals
SimpleFile, a free service offered by the CRA, helps lower-income individuals automatically file their tax returns to access benefits they would otherwise miss. Eligible individuals will receive an invitation, or you can complete the questionnaire to determine your eligibility for this service. Moderate-income households with simple returns can also benefit from free tax clinics in their area through the Community Volunteer Income Tax Program (CVITP).
Why Filing Your Taxes on Time Matters
Filing your tax return on time does more than keep you in good standing with the CRA. It also plays an important role when applying for credit, especially for a mortgage. Most lenders require your most recent Notice of Assessments (NOA) to confirm income, verify your taxes are filed, and check whether any balances are outstanding with the CRA.
Unfiled tax returns or unpaid taxes can create serious roadblocks during the mortgage approval process. From a lender’s perspective, CRA debt represents a higher risk because the CRA has broad collection powers and is given priority over other creditors, including mortgage lenders.
If taxes remain unpaid, the CRA can register liens against assets, including real estate, which take precedence over a mortgage lender’s claim. As a result, lenders may require that taxes be filed and the balance paid in full before approving financing, or may decline to provide financing altogether.
What Are Some Tax Season Changes I Should Know About?
The 2025 tax year won’t see many significant changes at the federal level. However, there are a few things to note when filing your taxes this year.
The federal basic personal amount for the 2025 tax year is $16,129.
A new non-refundable tax credit maintains the 15% rate for certain non-refundable tax credits claimed on amounts over the first income tax bracket threshold of $57,375.
Provincial and territorial tax changes can also affect your income tax return, depending on where you live. It’s important to review changes to both federal and provincial personal income tax before filing your return.
2025 Federal Tax Brackets
Changes to the federal personal income tax brackets reduce the lowest individual income tax rates from 15% to 14%. Since the cut happened mid-year, the full-year effective tax rate for 2025 will be 14.5% for income up to $57,375.
- 14.5% on income between $0 and $57,375
- 20.5% on income over $57,375 up to $114,750
- 26% on income over $114,750 up to $177,882
- 29% on income over $177,882 up to $253,414
- 33% on income over $253,414
RRSP and TFSA Annual Contribution Limits
- RRSP – up to 18% of your previous year’s income to a maximum of $32,490
- TFSA – up to $7,000
5 Tax Filing Details That Can Affect Your Refund or Balance Owing
When filing a tax return, these are the top areas Canadians most commonly miss. If your tax situation is more complex, you may want to consider consulting a tax professional to ensure the accuracy of your return and to maximize any benefits.
1. Gather Your Information Before You File
Filing your return before all tax slips arrive is one of the most common causes of errors, leading to the need to amend your return and, in some cases, a CRA reassessment. Waiting until you are sure you have all your tax slips and figures ensures you have everything you need to file your return accurately.
Common tax slips you may need include: T4 for employment income, T5 for investment income, T4RSP or T4RIF for RRSP income, T4A for pension and other income, NR4 for non-residents, T5013 for partnership income, T3 for trust income, and T5008 for securities transactions.
2. Make Note of Deductions
Taking advantage of allowable deductions can help directly reduce your taxable income and, in some cases, increase your tax refund. Common deductions include RRSP contributions, child care expenses, and eligible home office expenses.
3. Claim Credits
A tax credit is an amount you can use to reduce the tax you owe. Unlike deductions, which reduce your income, credits directly reduce your taxes payable. There are two types of tax credits you can claim: non-refundable and refundable.
Non-refundable tax credits can only reduce your tax payable or bring it to zero. If you have a credit that is larger than the amount of taxes you owe, the extra amount cannot increase your tax refund. A common example is charitable donations, which can reduce your tax liability but, on their own, do not create or increase a refund.
Refundable tax credits can result in a payment to you if the credit is larger than your taxes owed. A common example is the GST/HST credit, which is paid out to eligible Canadians to offset sales taxes.
4. Keep an Eye on Capital Gains and Losses
Selling investments in a non-registered account for more than their purchase price can trigger a taxable capital gain, which may increase the tax you owe. Selling for less creates a capital loss, which can be used to offset capital gains from the current year, carried back up to 3 years, or carried forward to reduce future capital gains. Keeping accurate records of these transactions helps ensure gains are reported correctly and losses are not missed.
5. Make Sure to Have a Record of Everything for 6 Years
The CRA generally requires taxpayers to keep all income tax slips and supporting documentation for at least 6 years from the end of the tax year. Keeping records organized, whether digitally or in a single central location, makes it much easier to respond if you are audited within this timeframe.
Frequently Asked Questions (FAQ) About 2026 Tax Season Tips for Canadians
What is the tax filing deadline in 2026?
For most Canadians, the 2025 tax return deadline is April 30, 2026. Self-employed individuals have until June 15, 2026, to file a return, but any taxes owed are still due by April 30 to avoid interest charges. Filing after these deadlines can result in penalties and interest charges by the CRA.
What happens if you file your tax return late in Canada?
Filing your taxes late can result in penalties and interest if you owe taxes. The CRA charges compound interest starting the day after the due date, which applies to any unpaid amount, including amounts from reassessments. The late-filing penalty is currently 5% of the balance owing plus an additional 1% for each full month the return is late up to a maximum of 12 months.
Do I still need to file a tax return if I had little or no income?
Yes, filing a tax return is necessary to access government benefits and credits, even if you have low or no income. The GST/HST credit and other income-related benefits are calculated based on information from filed tax returns. Failing to file can result in missing tax credits and payments you may be eligible to receive.
Final Thoughts
Staying organized during tax season is key to filing on time, maximizing your return, and reducing stress. Staying current with your tax filings helps keep future financing options open, whether you are planning to buy a home or refinance.
Lenders rely on filed tax returns and Notice of Assessments to verify income, confirm outstanding balances, and assess overall risk. If taxes are unfiled or amounts are owed to the CRA, this can delay or limit your ability to obtain a mortgage.
If you are planning ahead and want to understand how your tax situation fits into your borrowing plans, contact nesto mortgage experts to discuss how your overall financial profile and tax arrears or payment plans can affect mortgage approval.
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