Canada Delays Capital Gains Tax Hike to 2026 After Legislative Stalemate

The federal government postpones the controversial tax increase, citing the need for clarity ahead of tax season and ongoing political uncertainty.

The proposed capital gains tax hike, originally set for June 2024, has been deferred to January 1, 2026, according to Finance Minister Dominic LeBlanc.
The tax change would increase the taxable portion of capital gains from 50% to 66.67%, with exemptions for primary residences and thresholds for individuals exceeding $250,000 in annual gains.
The delay follows legislative gridlock after Prime Minister Justin Trudeau prorogued Parliament, leaving the proposal in limbo without formal enactment.
Taxpayers faced confusion over whether to file under the proposed or existing rules, as the Canada Revenue Agency initially planned to administer the hike despite its lack of legislative approval.
The decision to postpone comes ahead of a widely expected federal election, with opposition parties and some Liberal leadership candidates pledging to scrap the tax hike altogether.