Budget 2026: The Tax Filing Deadline Is Moving to May 15
Starting with the 2027 tax year (filed in 2028), plus bigger instalment thresholds, a longer objection window, and fewer T1135 filers
11/7/20262 min read
Budget 2026 launches what the government calls the most ambitious tax simplification effort in a generation. These are proposals, so they still need to become law. Here is what matters most to taxpayers.
1. One deadline: May 15
Today, most people file and pay by April 30. Self-employed individuals have until June 15 to file, but any balance owing is still due April 30. Budget 2026 proposes May 15 as the single due date to file and pay, including for self-employed individuals.
This would apply to the 2027 and later tax years, so the first May 15 deadline would be in 2028. Your 2026 return, filed in 2027, is not affected. The extra time is meant to let slips arrive and be processed, which should mean fewer reassessments.
2. Instalment thresholds more than double
The instalment threshold has been $3,000 since 2008. Budget 2026 proposes raising it to $7,500 and indexing it to inflation. Self-employed business owners could make a single payment of two thirds of their net tax owing by December 31 and pay the rest by the deadline. About 1.1 million individuals and 185,000 small incorporated businesses would no longer pay instalments. This would apply from the 2028 tax year.
3. More time to file a notice of objection
Most taxpayers would get one year after the notice of assessment is sent, with no extension request needed. Individuals and graduated rate estates would get the later of that date and two years after their filing due date. The budget does not state a start date for this change.
4. Fewer people filing a T1135
The foreign property reporting threshold would double from $100,000 to $200,000, which would exempt about a third of current filers. The simplified reporting threshold would rise from $250,000 to $500,000. This would apply to tax years ending after 2026.
5. Also proposed
Pre-filled returns: The CRA plans to offer pre-filled returns to about one million known filers starting in the 2027 filing season.
RRSP-for-life: RRSPs and RRIFs would merge, so there would be no forced conversion at 71. Minimum withdrawals after 71 would stay. No date has been given.
6. The other side: tougher penalties
The budget also proposes indexing fixed penalty amounts to inflation, adding penalties for repeat non-compliance, and spending more on CRA enforcement against non-filers. If you have unfiled returns, now is the time to deal with them.
What to do now
Nothing changes yet. Keep filing on time under the current rules. If you are self-employed, a business owner, or hold foreign property, we can help you plan for these changes.
We help individuals, self-employed people, and small businesses stay on top of deadlines and get caught up on prior years. 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. Please consult a CPA for advice specific to your situation.