Budget 2026 Simplifies Tax Credit Documentation

Proposed amendments would reduce paperwork for several Canadian tax credits, including medical expenses, home accessibility, moving and clergy deductions.

Updated on Nov. 5, 2026 in Taxes

Bold flat-color editorial illustration of a single bound bundle of plain cream paper tied with a red cord on a navy field. — Ottawa's proposed Budget 2026 would cut paperwork for several tax credits, including the Medical Expense Tax Credit, under amendments to the Tax Act. AI Illustration. Upload story photo >

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Budget 2026 proposed amendments to the Tax Act that would reduce the documentation required to claim several tax credits. Certain Medical Expense Tax Credit expenses would require no medical documentation, or only certification of the underlying condition.

Why it matters

The proposed changes would let taxpayers claim eligible expenses with less paperwork, and flat-rate options would remove the need to document specific expenses. The government intends the Medical Expense Tax Credit measure to take effect beginning in the 2026 tax year.

Budget 2026 proposes a $2,000 flat claim for service dog expenses and optional flat rates of $500 for incontinence products and $1,000 for gluten-free food for celiac patients. The government projects 44,000 people will benefit from the home accessibility and moving flat rates and about 9,000 from the clergy rate, but whether these measures have been adopted is not stated.

The players

Canada Revenue Agency

The federal agency responsible for administering Canada's tax laws and the tax credits covered by the proposed changes.

The details

A single document proving a medical condition could support claims for multiple eligible related expenses. The proposal would also let qualifying family members open a Registered Disability Savings Plan for an adult who cannot enter contracts independently and lacks a legal representative, allowing the account holder to benefit from the Canada Disability Savings Grant and Canada Disability Savings Bond.

The Medical Expense Tax Credit changes are intended to take effect beginning in the 2026 tax year.
Budget 2026 tax credit simplification was reported on November 5, 2026.

Roadmap

The proposal extends the existing Medical Expense Tax Credit provisions of the Income Tax Act by replacing detailed receipt requirements with certification and flat-rate options. It also adds flat-rate claims for moving, home accessibility and clergy residence deductions, marking a shift toward simpler filing across several credits.

Taxpayers claiming medical expenses could use a single document proving a condition for several related expenses, rather than gathering receipts for each. Those eligible for moving or home accessibility costs could claim a flat $1,000 rather than documenting actual expenses.

The takeaway

Simpler documentation rules could make claiming eligible tax credits less burdensome, particularly for people with ongoing medical conditions. Keep records of the underlying condition, since the proposal relies on certification rather than itemized receipts for some expenses.