Flat tax claims could become available for several personal deductions and credits under proposals in Budget 2026, giving eligible Canadians the option to use set amounts instead of calculating and itemizing certain expenses.
The proposed changes would generally apply to the 2027 and subsequent taxation years, while the proposed flat amount for qualifying gluten-free food expenses would apply beginning with the 2026 taxation year.
The measures are proposals, not changes that taxpayers can automatically use as of November 6, 2026, and would require amendments to the Income Tax Act, as outlined in the Budget 2026 proposals.
The existing detailed-claim method would remain available for eligible expenses.
Table of Contents
What flat tax claims are proposed
Under the plan, taxpayers who meet the existing eligibility rules could choose a prescribed amount for certain expenses instead of calculating the actual eligible costs and retaining all receipts for those costs, with the tax measures supplementary information setting out the proposed amounts.
| Measure | Proposed flat amount | Proposed timing |
|---|---|---|
| Moving Expense Deduction | $1,000 | 2027 and later taxation years |
| Home Accessibility Tax Credit | $1,000 one-time amount | 2027 and later taxation years |
| Clergy Residence Deduction | $1,000 per eligible month, up to annual remuneration | 2027 and later taxation years |
| Service dog expenses | $2,000 | 2027 and later taxation years |
| Incontinence products | $500 | 2027 and later taxation years |
| Gluten-free food expenses for celiac disease | $1,000 | 2026 and later taxation years |
| Adoption Expense Tax Credit | $1,200 per adopted child | 2027 and later taxation years |
| Labour Mobility Deduction for Tradespeople | $1,500 per year | 2027 and later taxation years |
The amounts are used to calculate the applicable deduction or credit and should not be confused with cash payments from the federal government.
Moving and accessibility claims would use set amounts
People who relocate for eligible work or education purposes could choose a $1,000 deduction rather than tracking qualifying moving costs such as transportation, storage, meals and temporary accommodation.
The moving deduction would still be limited by the income rules that apply to the existing measure, including employment or self-employment income earned at the new location, or certain student income.
If one spouse or common-law partner uses the flat amount for an eligible relocation, the other partner could not claim a deduction for the same move.
For the Home Accessibility Tax Credit, an eligible taxpayer could use a one-time $1,000 flat amount for a qualifying renovation in a particular year instead of claiming detailed expenses.
Only one taxpayer could use the flat amount for the same eligible dwelling in a year, and an individual could use the flat method only once in their lifetime.
People choosing the accessibility flat amount would still need to retain documents showing that qualifying renovation expenses were incurred.
Medical expense claims could become simpler
The proposal would create optional flat amounts for three categories of medical-related expenses while preserving the existing eligibility requirements.
A person with celiac disease who is certified as requiring a gluten-free diet could claim $1,000 for incremental gluten-free food costs for the 2026 and later taxation years, rather than calculating the price difference between gluten-free and comparable regular products.
For 2027 and later years, an eligible taxpayer could claim $500 for qualifying incontinence products and $2,000 for expenses related to a service dog specially trained to assist with a disability or medical condition.
The service-dog amount would cover eligible care, maintenance and related expenses, while the cost of acquiring the dog could still be itemized separately under the proposal.
The flat service-dog method would not apply to eligible expenses for service animals other than dogs.
Where more than one person wants to claim the same category of expense for the same eligible individual, the flat amount would not be available and the claimants would need to use the detailed method.
Other proposed flat deductions and credits
Eligible adoptive parents could claim an optional $1,200 amount for each adopted child in the year the adoption is completed instead of tracking eligible adoption expenses.
Tradespeople and apprentices who meet the existing requirements for the Labour Mobility Deduction could use a $1,500 flat deduction for an eligible temporary relocation in a year rather than itemizing actual qualifying costs.
Members of the clergy could claim $1,000 for each month they qualify for the Clergy Residence Deduction, subject to a limit based on their annual remuneration.
Finance Canada says the moving-expense proposal could benefit about 30,000 people, while the home-accessibility measure could benefit about 14,000 individuals.
The government estimates that about 30,000 people could avoid itemizing service-dog and incontinence-product expenses, and that roughly 35,000 individuals with celiac disease could benefit from the gluten-free food amount.
What taxpayers should know
These proposed flat tax claims would be optional, meaning taxpayers could compare the prescribed amount with their actual eligible expenses before choosing a method if legislation is enacted.
Someone with expenses well above the proposed flat amount could have a larger claim under the existing detailed method, although that method would continue to require supporting records and any documentation required by the relevant credit or deduction.
Taxpayers should also distinguish between a deduction and a non-refundable tax credit because they affect a return differently and do not generally produce a dollar-for-dollar reduction in tax payable.
The federal government has not yet published enacted legislation or final CRA filing instructions for these proposed methods in the Budget 2026 material.
Until the rules are legislated and filing guidance is released, taxpayers should continue following the current requirements and keep receipts for expenses they may wish to claim.
Frequently Asked Questions
Are the new flat tax claims already available?
No. They are Budget 2026 proposals and would require legislative changes before taxpayers could use them.
When would most of the proposed flat amounts begin?
Most would apply to the 2027 and later taxation years, while the proposed gluten-free food amount would apply to 2026 and later years.
Can taxpayers still claim their actual expenses?
Yes. The proposals would add optional flat methods while preserving the existing detailed approach for eligible expenses.
Would the flat amounts be direct payments from the government?
No. They would be amounts used to calculate eligible deductions or tax credits on an income tax return.
Do taxpayers need to keep any records?
Eligibility and documentation requirements would continue to apply, and some measures, such as the Home Accessibility Tax Credit, would still require proof that qualifying expenses were incurred.
Fact-Checked: The official Government of Canada sources confirm that Budget 2026 was released on November 5, 2026, and that the optional flat-amount measures generally apply to the 2027 and subsequent taxation years, while the gluten-free food measure applies to the 2026 and subsequent taxation years. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/11/government-of-canada-releases-budget-2026-masters-of-our-destiny.html?utm_source=openai))
Disclaimer: These measures are proposed tax changes and should not be treated as available until Parliament enacts them and the CRA publishes final filing guidance.