As the 2026 tax season approaches in both the United States and Canada, taxpayers on either side of the border are bracing for a wave of changes, uncertainties, and, for some, new opportunities. With sweeping legislative reforms taking effect and new budget measures announced, individuals and businesses will need to stay alert to avoid costly surprises—and maybe even land a bigger refund than expected.
Let’s start south of the border. The U.S. tax season will officially kick off as early as January 26, 2026, with the Internal Revenue Service (IRS) expected to begin accepting e-filed returns on that date, according to CPA Practice Advisor. The filing deadline remains April 15, 2026, but, as always, those who need more time can file for an extension using Form 4868, pushing their deadline to October 15, 2026. However, there’s a catch: if you owe taxes, payment is still due by April 15, regardless of whether you’ve requested more time to file.
This year, the IRS is implementing a significant operational change—no more paper refund checks. Direct deposit is now mandatory for all taxpayers expecting a refund. CPA Practice Advisor notes that refunds for electronically filed returns can arrive as quickly as 10 business days after acceptance, but generally land within 10 to 21 days. For those who file right at the start of the season, that could mean refunds in hand as early as February 6, 2026. But don’t book that vacation just yet: returns claiming the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) will face a roughly one-month delay while the IRS verifies eligibility.
Behind these logistical tweaks are deeper changes driven by the One Big Beautiful Bill Act, President Trump’s broad tax overhaul passed in July 2025. This legislation has ushered in a host of new deductions and credits for 2026, affecting everyone from workers with car loans and retirees to those earning overtime or tips. Some workers, for instance, will see no tax on overtime and tips, while families may benefit from an increased child tax credit. There are also late changes to income tax withholding, meaning some employees may have had too much withheld throughout 2025—potentially resulting in fatter refunds this spring.
For those wondering, “When will I get my tax refund?”—it’s a perennial question with no one-size-fits-all answer. Factors like how early you file, whether you claim certain credits, and whether you e-file or mail your return all play a role. Filing by mail can add three to four weeks to the process, as the IRS must manually enter paper returns. And if you have multiple income sources or complex family situations, you may need to wait for all your documents before you can even get started.
To help taxpayers navigate these timelines, CPA Practice Advisor has maintained its annual refund chart since 2014. This year’s chart suggests that, barring unforeseen government shutdowns or technical hiccups, most e-filers can expect their refunds within three weeks of IRS acceptance. However, those filing during the peak late-March to mid-April period may experience slightly longer waits.
Taxpayers seeking to maximize their refund (or minimize their bill) are advised to consult a professional, especially if they’ve experienced major life changes—marriage, divorce, retirement, a new home, or a new child. As CPA Practice Advisor puts it, “A tax professional can assist with this payment process,” ensuring you take advantage of every deduction and credit available.
North of the border, Canadians are also facing pivotal changes following the federal government’s release of Budget 2025—Our Plan: Building Canada Strong, unveiled by Finance Minister François-Philippe Champagne on November 4, 2025. The budget brings a mix of new credits, deferred rules, and the cancellation of some previously announced tax hikes.
One major headline: the planned increase in capital gains tax and the Canadian Entrepreneurs’ Incentive, both announced by the previous government, have been scrapped. For personal support workers, Budget 2025 introduces a temporary refundable tax credit of 5% of eligible earnings, up to $1,100 annually, for the 2026 to 2030 tax years. This measure is designed to support workers in health care establishments and could provide a meaningful boost to those on the front lines.
Budget 2025 also proposes a non-refundable Top-Up Tax Credit for the 2025 to 2030 taxation years, maintaining a 15% rate for certain non-refundable tax credits and addressing concerns that the middle-class tax cut inadvertently increased some individuals’ tax liability.
In a move to simplify life for lower-income Canadians, the Canada Revenue Agency (CRA) will be empowered to file tax returns on behalf of eligible individuals for 2025 and beyond. If an individual fails to review or update the information within 90 days of receiving it from the CRA, the agency can go ahead and file the return—helping ensure that vulnerable Canadians don’t miss out on crucial benefits.
Other notable changes include the deferral of new bare trust reporting rules to taxation years ending on or after December 31, 2026, and amendments to prevent double-claiming medical expenses under both the Home Accessibility Tax Credit and the Medical Expense Tax Credit, effective for 2026 and onwards. An anti-avoidance rule on trust property transfers will also take effect for transfers occurring on or after November 4, 2025.
On the environmental front, the Canada Carbon Rebate—designed to return proceeds from the federal fuel charge to eligible Canadians—will end for tax returns or adjustments filed after October 30, 2026. Businesses in manufacturing or processing may benefit from a new temporary provision: immediate expensing for eligible buildings purchased after Budget Day and used before 2030, with declining rates for later years until 2033.
For investors and savers, changes to qualified investment rules for registered plans (like RRSPs, TFSAs, and RESPs) will take effect January 1, 2027, aimed at streamlining and harmonizing the rules across different plan types. These technical reforms, while perhaps dry on the surface, could have meaningful impacts on Canadians’ ability to save for retirement, education, or disability-related needs.
With so many moving parts—new credits, cancelled hikes, deferred rules, and operational changes—both American and Canadian taxpayers will need to keep their eyes peeled and their paperwork in order. While some will see bigger refunds or new credits, others may face delays or find certain benefits phased out. The only constant, it seems, is change.
As tax season looms, one thing is clear: those who plan ahead, seek advice when needed, and stay informed will be best positioned to navigate this year’s shifting landscape, whether they’re filing on Main Street, USA or Yonge Street, Toronto.
