The Canada Caregiver Credit becomes refundable
A credit you could only use against tax owing becomes one you can receive as a refund, which matters most to caregivers with modest incomes.
Quick answer: Budget 2026 proposes making the Canada Caregiver Credit fully refundable from the 2027 tax year, worth up to $1,260 a year and indexed after that. Refundable means you receive it even if you owe no tax. The government estimates it will lift 15,000 people out of poverty.
Example
Grace works part time and cares for her mother. Her income is low enough that she owes little tax, so today the non-refundable credit is worth almost nothing to her. From 2027 she could receive up to $1,260 as a refund when she files.
Whether this applies to you depends on your year-end and structure; ask about your own situation and a CPA replies by email, usually the same business day, free.
Common questions
How much is the refundable caregiver credit?+
Do I need to owe tax to get it?+
Where this comes from
Budget 2026 was tabled on 5 November 2026. Figures on this page are from:
- Department of Finance Canada — Budget 2026: Key Measures
- BLG — Federal Budget 2026: tax measures
- RBC Wealth Management — Federal budget 2026 overview
General information, not tax advice. Budget measures are proposals until enacted and can change. Before deciding anything, send an enquiry.