Ottawa's federal budget could give Canadians more time to file and new artist credits

The federal budget proposes moving the tax filing deadline from April 30 to May 15 for employees, self-employed Canadians and their spouses or common-law partners, starting with the 2027 tax year. Self-employed filers now get until June 15 to file but must pay by April 30; under the proposal, both deadlines would move to May 15.

The budget also raises the threshold for quarterly instalment payments. Canadians who expect to owe more than $3,000 in income tax ($1,800 in Quebec) must pay quarterly now. The proposal raises that limit to $7,500, and to $4,500 for Quebec, starting in 2028.

If you disagree with a notice of assessment from the Canada Revenue Agency, you would have one year from the date of the notice to file an objection, up from 90 days.

Artists would see changes too. A new Canada Creative Credit would be a non-refundable tax credit that, combined with the Basic Personal Amount, could cover up to $45,000 in annual eligible income from original creative work. Employed artists could deduct work-related expenses up to the full amount of their employment income from eligible artistic activities, removing the current $1,000 limit.

Canadians with foreign investments would file less paperwork. The reporting threshold for the Foreign Income Verification Statement would rise from $100,000 to $200,000, and the limit for simplified reporting would go from $250,000 to $500,000.

These are proposals. They take effect only if the budget passes.