The 2026 Spring Economic Update delivered by the Minister of Finance on April 28 included a number of targeted tax relief measures for Canadian individual taxpayers. Some of those measures are summarized below.

Changes to Disability Tax Credit certification program

Canadians who are affected by a severe and prolonged impairment in physical or mental functions which significantly restricts their ability to carry out one or more basic activities of daily life can claim a non-refundable federal tax credit. For 2026, the amount of that Disability Tax Credit (DTC) is $10,341, which provides a reduction in federal tax of up to $1,448. Such individuals can also claim a similar credit for provincial tax purposes, with the amount dependent on the taxpayer’s province of residence.

The DTC is a valuable credit for those who are eligible, and obtaining a valid DTC certificate also enables such individuals to have access to a number of other benefit and credit programs for disabled individuals. However, the administrative process of obtaining such a certificate is often very difficult and time-consuming. Under current rules, a qualified medical practitioner must complete a lengthy form which requires not just the patient’s diagnosis, but extensive details on how their disability affects and restricts their ability to carry out activities of daily life. That form must be submitted to the Canada Revenue Agency as part of the application for a Disability Tax Credit Certificate, and a significant amount of time can elapse before a decision on that application is made and communicated to the individual. And, of course, individuals who do not have a family doctor may not have anyone who can complete the necessary medical assessment which is a required part of their DTC Certificate application.

The 2026 Spring Economic Update proposes changes to the DTC certification program in two areas. First, the listing of the types of impairments which can be certified by a medical professional other than a medical doctor has been expanded. Following that change, which is effective for DTC certificates issued after 2026, occupational therapists, physiotherapists, speech-language pathologists, and podiatrists will be able to certify additional specified types of impairments for purposes of a DTC Certificate application.

The second change provides that where an individual has been diagnosed with any one of a lengthy list of medical conditions (including such conditions as Alzheimer’s disease, severe intellectual disability, paraplegia, schizophrenia, or traumatic brain injury), a DTC application will require only that a medical practitioner certify that the individual has that medical condition. Unlike the current application, there will be no requirement for the medical practitioner to provide a detailed summary of how that medical condition affects the ability of an individual to carry out basic tasks of daily life. This change is effective for the 2026 and subsequent tax years.

The measures contained in the 2026 Spring Economic Update with respect to the Disability Tax Credit are purely administrative in nature and do not change the disability criteria which must be met to qualify for the DTC. The CRA will continue to have authority to ask for additional information to verify that these criteria are met.

Additional information on the changes to the Disability Tax Credit certification process can be found on the Finance Canada website at Tax measures: Supplementary information | Spring Economic Update 2026.

Changes to Home Buyers’ Plan

The federal Home Buyers’ Plan allows an eligible first-time home buyer to withdraw up to $60,000 from their registered retirement savings plan (RRSP) on a tax-free basis. (Eligible home buyers purchasing as joint owners can each withdraw up to $60,000.) All amounts withdrawn from an RRSP under the HBP must be repaid to that RRSP over a 15-year period, with such repayments starting in the second year following the year the withdrawal was made. Where amounts are not repaid as required, they are included in the taxpayer’s income for the year.

In the 2024 Federal Budget, changes to the HBP were announced which would permit HBP participants to defer any repayment of funds to their RRSP until the fifth year following the date of withdrawal. That change was effective for withdrawals made between January 1, 2022 and December 31, 2025.

In the 2026 Spring Economic Update the government announced that the ability to defer repayments under the HBP until the fifth year following the year of withdrawal would be extended to apply to HBP participants making a first withdrawal under the Plan up to the end of 2028.

More information on the changes to the HBP is available at Tax measures: Supplementary information | Spring Economic Update 2026.

Labour mobility deduction for tradespeople

Eligible tradespeople working in the construction industry are able to claim a deduction for expenses incurred in connection with one or more temporary work-related relocations. Under existing rules, such individuals can claim up to $4,000 in eligible temporary relocation expenses per year, with the deduction for each such temporary work relocation limited to 50% of employment income earned at that temporary location. As well, to qualify for the deduction, a “distance rule” provides that the individual must take up temporary lodging in Canada which is at least 150 kilometres closer to the temporary work location than their ordinary residence.

Effective for the 2026 and subsequent tax years, changes have been made to increase the maximum annual deduction from $4,000 to $10,000 (with that amount to be indexed annually after 2026). As well, the distance rule has been modified to provide that the individual’s temporary lodging in Canada must be at least 120 kilometres closer to a temporary work location than their ordinary residence.

Information on the changes can be found on the Finance Canada website at Tax measures: Supplementary information | Spring Economic Update 2026.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.