Form T1135: the reporting threshold doubles to $200,000
Fewer people will need to file Form T1135, the CRA’s foreign property report, and more will qualify for the short version.
Quick answer: Budget 2026 proposes raising the Form T1135 threshold from $100,000 to $200,000 of total cost of specified foreign property, and the simplified-reporting threshold from $250,000 to $500,000, for tax years ending after 2026. The false-statement penalty minimum would rise from $24,000 to $45,000.
| Now | Proposed | |
|---|---|---|
| Must file T1135 | Cost over $100,000 | Cost over $200,000 |
| Simplified reporting allowed | Up to $250,000 | Up to $500,000 |
Example
Arjun owns US shares that cost $150,000. Today he must file T1135. Under the proposal he would not, because $150,000 is under $200,000. The threshold is based on what the property cost, not its current value.
What to do. For your 2026 return the $100,000 threshold still applies. More detail: Form T1135 explained.
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
What is the new T1135 threshold?+
Do I still file T1135 for 2026?+
Where this comes from
Budget 2026 was tabled on 5 November 2026. Figures on this page are from:
- BLG — Federal Budget 2026: tax measures
- RBC Wealth Management — Federal budget 2026 overview
- Thor — 2026 Federal Budget: key tax measures
General information, not tax advice. Budget measures are proposals until enacted and can change. Before deciding anything, send an enquiry.