Tax season has a way of sneaking up on all of us, but 2026 brings enough real changes from the CRA that “I’ll figure it out in April” isn’t really a safe plan anymore. Between updated federal tax brackets, a mandatory account security update, and a shifting filing deadline calendar, this year’s return isn’t quite the same copy-paste job as last year’s.
If you live in London, Ontario — or anywhere in southwestern Ontario — here’s a plain-English walkthrough of every CRA tax change that could affect your 2025 return (the one you’re filing in 2026), what it means for your wallet, and how to make sure you’re not leaving money on the table.
Why 2026 Is a Bigger Filing Year Than Usual
Most years, the CRA quietly indexes a few numbers and life goes on. This year is different for three reasons:
- 2026 is the first full calendar year the reduced bottom federal tax rate applies, so most workers will feel the difference in their take-home pay for the entire year rather than just half of it.
- The CRA is rolling out mandatory backup multi-factor authentication (MFA) for every CRA My Account and My Business Account user — a change that has already locked some Canadians out of their accounts right before filing.
- Filing deadlines and RRSP cut-offs land on slightly different dates in 2026 because of how the calendar falls, and missing them by even a day can trigger interest charges.
None of this needs to be stressful — but it does need to be on your radar. And if you’d rather have a local expert handle it than second-guess yourself, that’s exactly the kind of filing-season headache a London Ontario tax accountant like Money Matrix Accounting deals with every day.
If you live in London, Ontario — or anywhere in southwestern Ontario — here’s a plain-English walkthrough of every CRA tax change that could affect your 2025 return (the one you’re filing in 2026), what it means for your wallet, and how to make sure you’re not leaving money on the table.
1. Federal Tax Bracket Changes for 2026
The biggest structural change this year is the continuation of the middle-class tax cut. The lowest federal income tax rate was reduced from 15% to 14%, effective July 1, 2025, and 2026 is the first full year this lower rate applies — meaning meaningful savings for all Canadian taxpayers.
On top of the rate cut, the federal tax brackets have also been indexed by 2% for inflation, a smaller adjustment than the 2.7% indexation seen in 2025. In practical terms, the 2026 federal brackets work out roughly like this:
If you live in London, Ontario — or anywhere in southwestern Ontario — here’s a plain-English walkthrough of every CRA tax change that could affect your 2025 return (the one you’re filing in 2026), what it means for your wallet, and how to make sure you’re not leaving money on the table.
2026 Federal Bracket (Taxable Income) | Rate |
$0 – $58,523 | 14% |
$58,524 – $117,045 | 20.5% |
$117,046 – $181,440 | 26% |
$181,441 – $258,482 | 29% |
Over $258,482 | 33% |
These updated brackets increase the thresholds for inflation while dropping the lowest rate from 14.5% to 14%. Remember: Canada uses a marginal system, so only the income inside each bracket is taxed at that bracket’s rate — moving into a higher bracket never means your whole income gets taxed at the higher rate.
What this means for London, Ontario, taxpayers: Combined with Ontario’s own provincial brackets, most salaried employees will notice a small bump in take-home pay throughout 2026, plus a modestly higher refund (or lower balance owing) when they file. Self-employed tradespeople, contractors, and small business owners in London who make quarterly instalments should double-check their instalment calculations reflect the new rate — this is a spot where a lot of DIY filers accidentally overpay.
If you’re not sure how the new brackets interact with Ontario provincial tax, self-employment income, or investment income, our Personal Tax Filing service in London, Ontario walks through the numbers with you rather than leaving you to guess.
2. The New CRA Backup MFA Requirement
This one has caught a lot of taxpayers off guard. Starting in February 2026, CRA My Account and My Business Account users are being asked to have a backup multi-factor authentication option on file, in addition to their existing primary MFA method.
The good news: the CRA has confirmed users will have the option to skip this step each time they sign in during tax filing season, rather than being locked out immediately. Still, waiting until the last minute is risky. Common lockout triggers this year include a changed phone number, logging in through an unfamiliar VPN, or having login credentials show up in an external data breach — all of which can automatically freeze CRA account access.
A few practical tips:
- Log in to your CRA My Account now, before you actually need it for filing, and set up a backup method (an authenticator app or passcode grid).
- Note that phone calls or text messages count as a valid primary MFA method but are not accepted as a backup option.
- If your account does get locked, you’ll typically need to verify your identity with details like your SIN, date of birth, and a specific line amount from your last assessed return.
If juggling CRA security settings on top of your actual tax prep sounds like one thing too many, that’s a task we regularly handle for clients as part of our Corporate Tax Filing services in London, Ontario — including getting locked-out business accounts back up and running before a deadline.
3. Filing Deadlines and Key Dates for 2026
Nothing turns a manageable tax season into a stressful one faster than a missed date. Here’s what’s on the calendar:
Date | What’s Due |
March 2, 2026 | Last day for RRSP contributions to reduce your 2025 taxable income |
March 2, 2026 | Deadline for employers to issue and file T4/T5 slips for 2025 |
April 30, 2026 | Deadline to file your 2025 personal tax return and pay any balance owing for most individuals |
June 15, 2026 | Filing deadline for self-employed individuals and their spouses or common-law partners (though any balance owing is still due April 30) |
The self-employed extension trips up a lot of people in London who run a small business or side gig — the return itself isn’t due until June 15, but any money owed is still due April 30. Miss that payment date and interest starts accruing even though your paperwork technically isn’t late yet.
Not sure which deadline applies to your situation, or juggling both a personal and a corporate filing? Our team keeps a running calendar for clients so nothing slips — check out our Blogs page for more filing-season reminders, or just book a consultation and we’ll map out your dates for you.
4. What This Means If You Run a Business in London
Corporate filers have their own set of 2026 wrinkles layered on top of everything above — new rules around T4A reporting enforcement, tightened CRA verification steps, and the same MFA changes affecting business accounts. If you’re incorporated, it’s worth reading our detailed breakdown of Corporate Tax Obligations in London, Ontario, and if you’re looking to claim everything you’re entitled to, our guide on 10 Corporate Tax Deductions Every Canadian Business Should Claim in 2026 is a good next stop.
And if you’re comparing local firms before deciding who handles your books, our roundup of the Top 10 Corporate Tax Accountants in London, Ontario is a useful (and honest) starting point.
Not sure which deadline applies to your situation, or juggling both a personal and a corporate filing? Our team keeps a running calendar for clients so nothing slips — check out our Blogs page for more filing-season reminders, or just book a consultation and we’ll map out your dates for you.
5. Other Areas Worth a Second Look This Year
A few adjacent services tend to matter more in a year with this many moving parts:
- Bookkeeping — if your books are behind, sorting them out before filing season avoids a scramble in April. See our Bookkeeping Service page.
- Payroll — the new bracket and indexing changes affect payroll deductions too. Our Payroll Services page covers what employers need to update.
- Trust returns and estate planning — if you’re managing a family trust or an estate, filing rules and deadlines differ from a standard personal return. Details are on our Trust Returns & Estate Planning page.
- New business registration — starting a business in 2026 and want to structure things tax-efficiently from day one? Our Company Registration Services page walks through the process.
Frequently Asked Questions
What are the biggest CRA tax changes for 2026?
When is the tax filing deadline for 2026?
Do I really need to set up backup MFA on my CRA account?
Will the new tax brackets actually lower my tax bill?
I'm self-employed in London — does anything change for me specifically?
Should I file my own taxes or hire an accountant this year?
Final Thoughts
None of the 2026 CRA changes are dramatic on their own — a slightly lower tax rate, a security update, a couple of calendar shifts. But stacked together, they’re enough to trip up anyone filing on autopilot. The safest approach is the boring one: log in to your CRA account now and sort out MFA, note your actual deadline (April 30 or June 15), and make sure your bracket math reflects the new rates.
If you’d rather skip the research and just have it handled correctly the first time, Money Matrix Accounting works with individuals, self-employed professionals, and businesses across London, Ontario, all year round — not just in April. Get in touch for a free consultation, or explore our full range of tax and accounting services to see how we can help before the deadlines catch up with you.