A wide range of new laws and policy changes are set to come into force across Canada in 2026, affecting everything from taxes and immigration to banking fees, citizenship rules and public services.
Among the most significant changes are new citizenship rules aimed at addressing the long-standing issue of so-called “Lost Canadians.” Under Bill C-3, which received royal assent in November, at least 115,000 people born abroad may become eligible for Canadian citizenship. The new rules allow Canadian parents who were themselves born outside the country to pass citizenship on to children born or adopted abroad, provided they meet a “substantial connection” requirement, including at least three years of residence in Canada before the child’s birth or adoption. The legislation reverses restrictions introduced in 2009 that were later ruled unconstitutional.
Canada’s immigration system will also see major reductions. Under the 2026–2028 immigration levels plan announced in November, the federal government will cap new permanent residents at 380,000 in 2026, down from 395,000 in 2025 and well below the more than 483,000 admitted in 2024. Temporary foreign workers will be capped at 230,000, while refugee and humanitarian admissions will fall to 56,200. The steepest cuts apply to international students, with just 155,000 new study permits planned for 2026, followed by 150,000 in each of the next two years.
The Canada Strong Pass will also return, running from Dec. 12, 2025, to Jan. 15, 2026, and again during the summer of 2026. The program offers free or discounted access to national parks, museums and VIA Rail travel, and was introduced to encourage domestic tourism amid strained relations with the United States.
A middle-class tax cut takes effect for the 2025 tax year and beyond. The lowest federal income tax rate has been reduced from 15 per cent to 14.5 per cent for 2025 and will drop further to 14 per cent in 2026. The change applies to the first $57,375 of taxable income and is expected to benefit nearly 22 million Canadians, with savings of up to $420 per individual or $840 per couple.
First-time home buyers could also see relief if proposed federal legislation is passed. The plan would eliminate GST or the federal portion of the HST on newly built or substantially renovated homes priced up to $1 million, with rebates of up to $50,000. Homes valued between $1 million and $1.5 million would qualify for partial rebates. Ontario has indicated it would remove the provincial portion of the HST as well if the legislation becomes law.
Starting with the 2026 tax year, the Canada Revenue Agency will begin automatically filing tax returns for about one million low-income Canadians to ensure they receive benefits such as the Canada Child Benefit and the GST/HST credit. The program is expected to expand to about 5.5 million people by 2028.
Banking rules are also changing. As of March 12, 2026, non-sufficient funds fees will be capped at $10 for personal and joint accounts. Banks will no longer be allowed to charge NSF fees for overdrafts under $10, and only one NSF fee may be applied within a two-business-day period. The caps do not apply to business accounts.
The federal government’s “Buy Canadian” policy will be fully rolled out by spring 2026, prioritizing Canadian suppliers and materials in federal procurement. The initiative, introduced in response to U.S. tariffs, will initially focus on steel, aluminum and softwood lumber.
Federal public servants will also be eligible for a new early retirement incentive beginning in 2026. Employees aged 50 or older with at least 10 years of service may apply to retire early with a pension based on years worked, a measure aimed at reducing the size of the federal workforce.
Finally, the National School Food Program will become permanent. Ottawa has committed to providing $216.6 million in annual funding starting in 2029, building on earlier investments. The program is designed to provide meals to as many as 400,000 children across the country.
