Business tax measures
Budget 2026 introduces a series of business tax measures. Read our full summary to learn more.
Federal Budget 2026 overview
Canada’s Minister of Finance François-Philippe Champagne presented Budget 2026: Masters of our Destiny (Budget 2026) on November 5, 2026.
It focuses on strengthening Canada's economic resilience and competitiveness, with an emphasis on investment, trade diversification, and reducing reliance on external economic pressures amid growing geopolitical uncertainty. To support these objectives, the government is prioritizing long-term investments in areas such as energy and electricity infrastructure, critical minerals, housing, innovation, and measures intended to accelerate private-sector investment. Through what it describes as an "Investment Supercycle," the government aims to position Canada for long-term growth while reducing reliance on external economic pressures.
$400+
billion
in capital investments over six years
$22
billion
in new affordability measures
27-28
target year
to balance operating spending with revenues
The budget includes more than $400 billion in capital investments over six years, $22 billion in new affordability measures, and a commitment to balance day-to-day operating spending with revenues by 2027-28, while maintaining a declining deficit-to-GDP ratio.
Budget 2026 introduces a number of significant tax measures affecting both businesses and individuals, many of which should be welcome to taxpayers and tax practitioners. These include a new $15 million Canada Growth Incentive capital gains exemption, expanded capital gains deferral opportunities for reinvestment in Canadian small businesses, and various measures intended to reduce administrative and technical complexity. The budget moves the income tax filing and payment deadline to May 15, increase certain reporting thresholds, and simplify a number of personal tax deductions and credits. In addition, the government announced its intention to explore a potentially significant new regime that would allow wholly owned corporate groups to transfer losses among group members.
These measures are in addition to the previously announced Productivity Mega Deduction, which the government confirms in the budget that it intends to proceed with.
Our experienced professionals have summarized the key tax measures and planning considerations in Budget 2026 to help Canadian businesses and individuals understand the potential impacts and opportunities. Read on for our insights.
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Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
