Budget 2026 for Business Owners, Farmers and Charities
Budget 2026 proposes changes that affect family farms, small corporations and private foundations. This post covers the ones most relevant to business owners and the dates they are expected to apply.
11/7/20261 min read
Budget 2026 includes several proposals for business owners. They still need to become law. Here are the highlights.
Family farm transfers expand to nieces and nephews
The intergenerational rollover lets farmers and fishers transfer qualifying farm and fishing property to a child or grandchild on a tax-deferred basis. Budget 2026 proposes extending it to nieces and nephews for transfers on or after January 1, 2027. For families without children to take over the farm, this opens another way to keep it in the family.
Fewer instalments for small corporations
About 185,000 small incorporated businesses would no longer pay instalments under the higher $7,500 threshold, which applies from the 2028 tax year.
Dividends and preferred shares
Dividends paid by CCPCs would be exempt from the taxable preferred share regime. The dividend allowance would rise from $500,000 to $1.5 million for tax years ending after 2026. A consultation on further changes is also planned.
Simpler paperwork
Corporate elections: corporations would no longer have to file a certified copy of the directors’ resolution
Non-resident property sales: simpler withholding rules for taxable Canadian property.
Immediate expensing
The Productivity Mega Deduction, which allows most new capital investments to be fully written off in the year they are available for use, would become permanent.
Corporate loss transfers (consultation only)
The government intends to allow current-year non-capital losses to move within wholly owned corporate groups. This is at the consultation stage, so no rules exist yet.
Private foundations
The excess corporate holdings regime for private foundations would be eliminated for the 2027 tax year onward.
Tougher compliance
The CRA would get more funding to pursue non-filers and strengthen checks on corporate refunds.
We work with farms, small corporations, and charities. If you are planning a transfer or restructuring, talk to us before you act. Reach out at fabtaxcpa.ca.
Source: budget.canada.ca/2026/report-rapport/chap6-en.html
This content is for general information only and does not constitute professional tax advice. Budget measures are proposals until legislated.