Canada's 2026 budget: one tax deadline and a single annual instalment for the self-employed

Canada's federal budget, tabled November 5, 2026, proposes a single May 15 tax deadline for individuals and a once-a-year instalment option for self-employed people. Here's what would change, when, and what's still unknown.

November 6, 20265 min read Read this article in French →

A self-employed woman going over her books at a table with a calculator, receipts and a laptop — Photo: stevepb / Pixabay

Canada's federal government tabled its budget on Thursday, November 5, 2026. Small businesses won't find a tax cut in it. They will find a few very practical changes for self-employed people and owners of small corporations: one deadline for filing and paying personal income tax, and a much simpler instalment system.

These are Canadian federal tax measures only. If your business is outside Canada (in the United States, France, Belgium or anywhere else), they don't apply to you. They are also still proposals. The budget describes them in conditional terms, and Parliament has to pass them before they become law.

One deadline: May 15

Today most people have to file and pay by April 30. Self-employed people and their spouses or common-law partners can file as late as June 15, but any balance owing is still due April 30.

The budget proposes moving both the filing and payment deadlines to May 15 for everyone, “including self-employed individuals and their spouses or common-law partners.” It would apply to the 2027 tax year, so to returns filed in spring 2028. The government expects the change to save Canadians about $230 million in interest and penalties over five years.

For the self-employed, that means two more weeks to pay but one less month to file.

One instalment a year instead of four

Individuals “whose primary source of income is from a business (including professional or commission income)” could make a single annual instalment instead of paying quarterly. The payment would be two thirds of their combined federal-provincial net tax for the year, due by December 31. The rest would be due on the regular balance-due date. Farmers and fishers already get similar treatment. This would start with the 2028 tax year.

Fewer people paying instalments at all

The instalment threshold hasn't changed since 2008. It would rise from $3,000 to $7,500 for corporations and for individuals living outside Quebec. For Quebec residents, whose provincial tax isn't collected by Ottawa, the federal threshold would rise from $1,800 to $4,500. The thresholds would be indexed to inflation and would apply to tax years starting on or after January 1, 2028. The budget says nearly 1.1 million individuals and 185,000 small incorporated businesses would no longer have to pay instalments.

A new investment incentive with long exclusions

The budget also proposes a new Canada Growth Incentive. It would exempt up to $15 million in capital gains on certain shares of Canadian-controlled private corporations with no more than $100 million in assets. The shares would have to be issued between budget day and the end of 2036 and held for at least 36 months. Many types of business would be excluded, including food and accommodation, arts and entertainment, real estate, franchised businesses, consulting, and professional practices such as accountants, lawyers and engineers. The Canadian Federation of Independent Business says the rules result in “excluding about half of the businesses that could otherwise use it.”

What about Quebec?

These measures apply to your federal return. Your Quebec return and any instalments you pay to Revenu Québec fall under the Quebec government, and the federal budget doesn't change them. It's not yet known whether Quebec will follow suit.

What to do now

Change nothing for now. Keep your current deadlines for your 2026 taxes, and your quarterly instalments for 2026 and 2027.
Plan your cash flow for 2028. Paying two thirds of a year's tax in one December payment is a big hit. If you go that route, put money aside every month in a separate account.
Bring it up with your accountant at year-end. Ask whether you'll fall under the new threshold and which option suits you.
Watch for May 15 as your new date once the measure is passed.

What we don't know yet

There's no date yet for when these measures will be passed. The Canada Revenue Agency hasn't published the practical details, such as the forms or how you would choose between one payment and four. The wording could also change as Parliament studies it.

Your turn

Would one instalment in December make your life easier, or would you rather spread your tax payments over the year?