Tax Tips: Second Quarter 2026

2ND QUARTER 2026 TAX TIPS

Some quick points to consider…

The federal government has proposed to reduce the base CPP contribution
rate from 9.9% to 9.5%, effective January 1, 2027. This would reduce CPP
contributions by about $133 for both the employee and employer where the
employee earns $70,000.
For 2026, the limit on the deduction for non-taxable allowances paid by an
employer to an employee using a personal vehicle for business purposes
will increase by one cent to 73 cents per km for the first 5,000 kms driven
and to 67 cents for each additional km.
The federal government has proposed to allow 100% immediate expensing
for greenhouses, retroactive to November 4, 2025.
US citizens are required to report their world-wide income on US personal
tax returns even if they do not live in the US. As of April 13, 2026, the fee to
renounce US citizenship was reduced from $2,350 to $450.