Canada’s Spring Economic Update 2026
The spring economic update outlines several proposed changes affecting workers, home buyers, people with disabilities, and business owners. Below is a summary of selected measures that may be relevant for investors in the coming years.
Lower CPP contributions starting in 2027
The federal government proposes to reduce the base Canada Pension Plan (CPP) contribution rate from 9.9% to 9.5% starting January 1, 2027. The enhanced portion of CPP contributions are unchanged.
HBP repayment grace period extended again
The Home Buyers’ Plan’s five-year repayment grace period is being extended again. First-time home buyers who make a first HBP withdrawal by the end of 2028 will begin repayments five years after the withdrawal year, instead of the second year.
Easier access to the DTC
Several measures aim to streamline approvals for the Disability Tax Credit, including:
- Simplified certification for many long-lasting medical conditions (e.g., Alzheimer’s disease)
- Broader list of qualified professionals who can certify eligibility (effective 2027)
- Public guardians and trustees may certify incapacity in certain cases
Enhanced Labour Mobility Deduction for tradespeople
The Labour Mobility Deduction for eligible tradespeople is enhanced for 2026 and subsequent tax years:
- Maximum deductible expenses increased from $4,000 to $10,000 (subject to limits)
- Minimum distance requirement relaxed from 150 km to 120 km
EI support extended for seasonal workers
Temporary measures allowing up to five additional weeks of EI regular benefits for seasonal workers in certain regions are being extended through October 2028.
Employee Ownership Trust tax break made permanent
Business owners selling to an Employee Ownership Trust or worker cooperative were able to access up to a $10 million capital gains exemption, for sales after 2023 and prior to the end of 2026. This is now proposed to be permanent.
For more information, consult the Spring Economic Update 2026.
Important disclosures
Important disclosures
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