Key Details of the Proposed Change

• Refundability: Currently, the CCC is a non-refundable tax credit that only lowers the income tax you owe. Under the 2026 budget proposal, it will become fully refundable, meaning eligible caregivers who owe zero income tax can receive the payout directly (turning into a direct payment or cheque).

• Maximum Value: Eligible individuals can receive up to $1,260 per year.

• Timeline: The reform is proposed to take effect for the 2027 tax year (with fiscal projections running through 2030–2031).

• Target Reach: The change is projected to cost $845 million over four years and extend support to an estimated 585,000 caregivers nationwide, including roughly 180,000 who previously received no benefit because they had no tax liability.

• Current Rules (2026): For the 2026 tax year, the credit remains non-refundable, offering a federal amount of $8,773 for an infirm relative aged 18 or older (which reduces federal tax by about $1,228 at the 14% rate, subject to income thresholds).

You can review the official policy breakdown through the Government of Canada Budget 2026 Report.