The Canadian Revenue Agency (CRA) has officially launched the 2026 tax-filing season today, marking a pivotal shift toward digital services as Canadians prepare to submit their income tax and benefit returns for 2025. This year, the agency is intensifying its push for online filing, discontinuing the proactive mailing of paper tax packages to individuals in an effort to streamline operations and reduce environmental impact.
Digital Transformation and Enhanced Online Tools
In a move to modernize tax administration, the CRA will no longer automatically send out income tax packages via mail. Instead, individuals who prefer paper filing must now order, download, and print the necessary forms themselves. This decision aligns with the agency's broader strategy to transition to digital platforms, aiming to cut down on the overwhelming volume of calls received last year—over 32 million, with daily peaks nearing 300,000 during tax season.
To support this digital shift, the CRA is rolling out enhanced online tools designed to expedite the filing process and minimize wait times. A key addition is the GenAI chatbot, which has been in testing since March 2025 and will now be available 24/7 to assist users with inquiries about CRA programs and services. However, this tool has faced scrutiny; Auditor General Karen Hogan previously criticized it for providing incorrect answers to her team, highlighting potential reliability issues that the agency may need to address.
Significant Tax Rate Adjustments for 2026
This tax season introduces several notable changes to the income tax and benefit return, impacting both individual taxpayers and specific groups like farmers. One of the most significant updates is the reduction of the lowest marginal individual income tax rate from 15 percent to 14 percent, effective July 1, 2025. Due to this mid-year implementation, the rate for the 2025 tax year will be set at 14.5 percent. For 2026, this translates to a tax rate of 14 percent on taxable income of $58,523 or less.
Additionally, a new non-refundable tax credit has been introduced to maintain a 15 percent rate for certain non-refundable tax credits claimed on amounts exceeding the first income tax bracket threshold of $57,375 for 2025. This adjustment aims to provide consistency and fairness in tax calculations for higher-income earners.
Changes Affecting Farmers and Disability Supports
Farmers will see a shift with the federal fuel charge ending in April 2025. The return of fuel charge proceeds to farmers tax credit for the 2024-2025 year will be the final credit available to eligible farming businesses, as confirmed by the CRA. This change reflects broader environmental and economic policy adjustments.
Furthermore, the CRA has expanded its list of eligible expenses for the disability supports deduction, offering more financial relief to individuals with disabilities. This expansion underscores the agency's commitment to inclusivity and support for vulnerable populations.
Key Filing Dates and Recommendations
Starting today, February 23, 2026, income taxes and benefit returns for 2025 can be filed online through the CRA's digital platforms. The agency advises early filers to ensure they have all necessary tax slips before submitting, as most are issued by employers or financial institutions by the end of February. Copies of tax slips can also be accessed via a CRA account once processed.
If tax slips are not received by the end of March, the CRA recommends contacting issuers directly for copies. The deadline for most individuals to file their returns is April 30, 2026. Filing and paying on time is crucial to avoid late-filing penalties and interest charges, which can add unnecessary financial burdens.
The CRA strongly encourages filing as early as possible to avoid the end-of-season rush, leveraging the new digital tools to streamline the process. As tax season unfolds, these changes highlight the agency's evolving approach to service delivery and taxpayer engagement in an increasingly digital world.
