Major Tax Changes Coming in 2026
- Toronto CPA Service
- May 13
- 5 min read
Updated: Jun 10
Key Changes You Need to Know
Change 1: GST/HST Refund Officially Cancelled → Replaced with a Name You've Never Heard Of
📌 Current Status:
GST/HST credits will be officially abolished starting in July 2026.
Replace with: Canada Groceries and Essentials Benefit (CGEB)
✅ Good News:
The new benefits are 25% higher than the old tax refund and will last 5 years.
In theory, people who have filed taxes will automatically transfer their information.
❌ Bad News:
If you move, your marital status changes, or there are gaps in your CRA records → it might fall into the gap. Most people have no idea about this new name and don't even know what to look up.
💰 Comparison of Old and New Amounts (Annual Amount):
| Family Type | Old GST/HST | New CGEB |
|----------------------------------|-------------|----------|
| Single with no children | Up to 415 | 519 ↑ |
| Single parent with 1 child | Up to 634 | 792 ↑ |
| Couples without children | Up to 544 | 680 ↑ |
| Family of four | Up to 1,512 | 1,890 ↑ |
✅ There is also a supplementary payment received on June 5, 2026.
= 50% of the annual amount (approximately $267 for a single person, approximately $533 for a family of four)
⚠️ Key point: You must file your 2024 taxes to receive this money. No taxes filed = 0.
Change 2: GIS (Garbage Income Guarantee) Will Be Recalculated in July → Those Who Did Not File Taxes Will Have Their Payments Suspended
📌 Mechanism:
Every July, Service Canada recalculates GIS based on your 2025 income.
GIS: Up to $1,109.85/month (single) → Over $13,300/year
💀 Fatal Problem:
If you did not file your 2025 taxes, Service Canada will have no income data → will not estimate or warn you → will directly suspend payments.
⏳ Recovery Process:
Submit supplementary tax return for 2025.
Wait 6–8 weeks for processing.
During this period, not a single penny will be received.
⚠️ Even More Ruthless:
GIS can be used to trace and reissue [up to 11 months].
If you stop reporting for more than 11 months, you will incur losses for the months that exceed this period.
📌 Special Reminder:
Many elderly people who receive GIS (Garbage Income Tax) have no taxable income and think, "Since I don't owe any taxes, I don't need to file a tax return" → This is wrong.
Filing taxes is not just about paying taxes; it's about proving your income level so you can continue receiving benefits.
Change 3: Clawback Trigger Threshold for OAS Pension Funds
📌 Mechanism:
The trigger threshold is 93,454 (based on 2025 revenue) for the period from July 2026 to June 2027.
💥 A Real-Life Example:
A 68-year-old retiree typically has an annual income of 80,000.
Selling an investment property in 2025 triggered a capital gain of 200,000, resulting in an income of 280,000 in 2025.
👉 Starting July 2026, OAS will be completely reset to zero, for a period of 12 months.
⚠️ Sources of High-Income Years That Are Easily Overlooked:
Large RRSP converted to RRIF and withdrawn
Sell your vacation home or investment property
Large severance pay
Liquidate investments for large expenditures
Even if there was only one year with high income, the recovery process still lasted a full 12 months.
Change 4: The CRA Has Access to Your Cryptocurrency Transaction Records for the Past Six Months
📌 The CARF Framework (Crypto Asset Reporting Framework) will take effect on January 1, 2026.
All Canadian cryptocurrency exchanges must collect and report:
✅ Full name, SIN, date of birth, address
✅ Every currency pair transaction
✅ Any transfer exceeding 50,000 USD
✅ Year-end account balance
🎯 Affected Platforms:
Canadian platforms: Newton, Bitbuy, Wealthsimple Crypto, Coinsquare, Shakepay
Through OECD multi-country data sharing: Binance, Coinbase, Kraken and other foreign platforms also transmit Canadian resident data to the CRA.
⚠️ “I only use foreign exchanges; the CRA can't see them” → Wrong. This path will be blocked starting in 2026.
💰 Consequences If You Don't Report Your Cryptocurrency Income:
Penalty for knowingly failing to report tax = 50% of the underreported tax + interest.
Example: $50,000 unreported capital gains, 30% tax rate → Tax $15,000 + penalty $7,500 + interest.
July 1st means: The CRA has collected data for a full six months. This is not "about to happen," it is "already happening."
Change 5: Gasoline Consumption Tax to Be Reinstated in September → 10 Points Increase Per Liter
📌 Background:
On April 20, 2026, the federal fuel consumption tax will be suspended.
Gasoline: Saves 10 points per liter.
Diesel: Saves 4 bonus points/liter.
Saving Canadian families a total of approximately $2.4 billion.
📅 Recovery Time:
Full resumption on September 8, 2026 (the day after Labor Day).
💸 Impact on Ordinary Families:
Two cars, weekly gas → Extra $15–$20 per month → $180–$240 per year.
This isn't a new tax; it's a suspension ending. But the effect on your wallet will be that starting September 8th, gas will be more expensive.
📋 Having Seen the Major Tax and Financial Changes, What Are the 5 Things You Must Do Before July 1st?
✅ 1. File Your 2025 Taxes
Protect your GIS.
Ensure automatic transfer to CGEB.
Provide a basis for OAS recovery calculations.
If you are a senior citizen or have senior citizens in your family: Confirm that you have filed your 2025 taxes, even if your income is zero.
✅ 2. Log in to CRA My Account to Check Your CGEB Registration Status
Check if the benefits summary includes the Canada Groceries and Essentials Benefit.
If you can't see it, or it still uses the old GST/HST name → Contact the CRA.
The one-time reimbursement on June 5th is also linked to this.
✅ 3. Calculate Your Net Income in 2025
If your OAS is close to or exceeds $93,454, prepare a budget in advance for a 12-month reduction or reduction to zero.
Be especially careful with one-off major events (selling a house, large RRSP withdrawal, severance pay).
✅ 4. Organize Your Cryptocurrency Transaction History
Every transaction in 2026 will be recorded by the platform and reported to the CRA.
Ensure you are tracking cost basis and profit/loss.
If crypto revenue is not reported in 2025 → Consider voluntary correction (VDP voluntary disclosure), which may reduce penalties.
✅ 5. Make Good Use of the Fuel Tax Suspension Window
Fill up the tank before September 8th.
Long-distance summer travel should be planned before September.
Save 10 points per liter; then the bonus will disappear.
Quick link for tax filing; click here to file your taxes
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