Federal Budget 2026 Highlights — What It Means for Your Wallet

The 2026 federal budget was tabled on April 1 with a focus on housing affordability, cost-of-living support, and fiscal restraint. Here are the changes that actually affect your personal finances.
Housing Measures
The government announced an extension of the 30-year amortization for first-time buyers on homes up to $1.5 million. Previously limited to new construction, this now applies to resale homes as well. This doesn't make homes cheaper — but it does lower monthly payments by roughly $200–$300 on a $500K mortgage compared to 25-year amortization.
The FHSA contribution limit remains at $8,000/year with a $40,000 lifetime cap. No changes were made to the Home Buyers' Plan RRSP withdrawal limit, which stays at $60,000.
Run the numbers for your situation: Mortgage Calculator | FHSA vs RRSP vs TFSA comparison
Tax Bracket Updates
Federal tax brackets were indexed by 2.7% for inflation — the lowest adjustment in three years (2025 was 4.7%, 2024 was 4.7%). The 2026 brackets:
- 15% on the first $57,375
- 20.5% on $57,375 to $114,750
- 26% on $114,750 to $158,468
- 29% on $158,468 to $220,000
- 33% on income over $220,000
The basic personal amount increased to $16,129. Check your exact combined federal/provincial rate with our income tax calculator.
Capital Gains: No Changes (For Now)
The 2/3 inclusion rate on capital gains above $250,000 — introduced in Budget 2024 — remains in effect. There were rumours of adjustments, but the budget confirmed the current structure stays. The first $250K in annual capital gains is still taxed at the 50% inclusion rate; amounts above are at 66.67%.
See our full breakdown: Capital Gains Tax 2026 Guide | Capital Gains Calculator
Benefit Increases
The Canada Child Benefit and GST/HST credit will be indexed by 2.7% for the July 2026 benefit year. Expected new maximums:
- CCB under 6: ~$7,998/year (up from $7,787)
- CCB 6–17: ~$6,747/year (up from $6,570)
- GST/HST single: ~$533/year (up from $519)
Check your eligibility: CCB Calculator | GST/HST Credit Calculator
TFSA and RRSP Limits
The TFSA limit stays at $7,000 for 2026 (confirmed in January). The RRSP deduction limit for 2026 is $32,490. No surprises here — both are indexed to CPI.
Check your TFSA room | Estimate your RRSP tax savings
What Didn't Change
Despite lobbying, there were no changes to:
- The principal residence exemption
- TFSA or RRSP contribution limits beyond inflation indexing
- The foreign buyer ban (still in effect until January 2027)
- Employment Insurance premium rates
Bottom Line
This was a steady-as-she-goes budget for personal finances. The biggest practical impact is the extended 30-year amortization for first-time buyers on resale homes. For everyone else, the main change is inflation indexing on brackets and benefits — modest but automatic.
Editorial disclaimer
This is news reporting by LoonieLabs Editorial for general information only. It is not financial, tax, legal, or investment advice. Markets coverage is reported analysis, not personalized advice — we hold no positions in individual securities discussed and accept no paid placement. Verify quotes, rates, benefit amounts, and dollar figures on the official source before acting. See our methodology for sourcing and corrections policy. Last reviewed: April 14, 2026.
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Fact-checked by our Tax & Benefits reviewer · Last reviewed April 14, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
Published by the LoonieLabs Editorial Team.