What's new for 2026

New 2026 T4 and RL-1 codes

  • Federal – T4 Code 96 for reporting the eligible remuneration of Personal Support Workers (PSW) who work for eligible health care establishments. A tax credit can be claimed for the lower of 5% of eligible earnings and $1,100 per year. This is a temporary initiative intended to be available for 5 tax years (2026 to 2030).

  • Revenu Quebec – RL-1 Box O Code CE for reporting payments to a CCPC in the trucking industry:

    • For the 2026 tax year, fees for services in the trucking industry (to a Canadian-controlled private corporation (CCPC)) are to be reported in RL-1 Box O (Other income) under a new code CE (rather than the more general RL-1 Box O Code RD). T4 reporting remains T4A Box 048.

 

  • On November 25, 2025, Quebec announced a 2-year QHSF holiday (tax years 2026 and 2027) for employers in the agriculture, forestry and fishing sectors with more than 50% of their activities in specific NAICS codes.

  • On January 28, 2026, it was announced that “partially exempt specified employers” with 25%-50% of wages attributable to specific NAICS codes are eligible for a 50% HSF reduction for those tax years.

 

  • In January the 2026 exemption threshold increased from 2.25M to 2.5M, and the upper threshold from 4.5M to 5M.

  • As a tariff-relief measure, it was announced on August 28, 2026 that HE Levy for payroll paid from September to December 15, 2026 could be deferred to February 2027.

 

  • Quebec Garnishments – Starting April 1, 2026, exemption amounts were increased for civil debt judgment orders. The exemptions were removed for support judgment orders and the rate of withholding was reduced from 50% to 30%.

  • Permanent Daylight Savings Time adoption – Before the November 1, 2026 transition to Standard Time, British Columbia, Alberta, Manitoba and Northwest Territories adopted Daylight Savings Time permanently so did not “fall back” an hour on that date.

  • Prince Edward Island – On June 12, 2026, it was announced that, starting June 30, 2026, new Employment standards would come into effect. Among other changes: statutory holidays, hours of work, overtime, vacation pay, certain leaves, termination rules and complaint processes were modified.

  • New Brunswick Pay Transparency measures – On June 2, 2026, Bill 24 was passed. It requires compensation transparency in job ads and prohibits employers from seeking salary history or retaliating against employees for discussing compensation. Annual pay transparency reporting requirements will be phased in, if proclaimed, starting in March 31, 2028 for public service employers, March 31, 2029 for employers with 100 employees or more and March 2030 for employers with 50-99 employees.

  • British Columbia Pay Transparency Reporting – By November 1, 2026 employers with 50 or more BC employees were required to complete and post a pay transparency report for the first time. The process involves an analysis of employees’ salary, hours worked, bonus pay, overtime pay and overtime hours. An online reporting tool is available to assist employers.

  • Nova Scotia Workers Compensation – beginning in the first week of December 2026, Powerpay will automatically update Nova Scotia WCB rates for the new year. Updated rates will be used starting with the first payment date in 2027 (Pay Period 1).

  • Prince Edward Island – introduced a new upper income tax threshold for income greater than $200,000 at 20% (prorated to 21%).

  • British Columbia – increased the lowest personal income tax rate and rate for basic personal income tax credits from 5.06% to 5.60% (prorated to 6.14%), the BC tax reduction credit was also increased from $575 to $690 (prorated to $805).

  • Newfoundland & Labrador – there was an increase to the basic personal amount, from $11,188 to $13,094 (prorated to $15,000).