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ARTICLE · 09 NOVEMBER 2026

Federal Budget 2026: Key Tax Changes And Planning Considerations

Fogler, Rubinoff LLP
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Canada's federal government has introduced Budget 2026, proposing substantial changes to the income tax system that could reshape how businesses and entrepreneurs structure their investments and operations.

CanadaTax
Julien Cohen
Julien Cohen
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On November 5, 2026, the federal government released Budget 2026 (the “Budget“), introducing several proposed changes to Canada’s income tax system. The Budget focuses on encouraging business investment, supporting Canadian entrepreneurship and simplifying tax compliance.

Among the more significant proposals are a new $15 million capital gains exemption, expanded capital gains rollover rules, a potential corporate loss transfer regime and changes affecting transactions involving non-residents.

The Budget does not propose any changes to general federal personal or corporate income tax rates.

We summarize below certain key tax measures relevant to Canadian businesses, shareholders and individuals.

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