Title: Canada to Implement Automatic Tax Filing for Low-Income Canadians

Prime Minister Mark Carney announced on Friday that the Canadian government will introduce automatic tax filing for low-income Canadians starting in the 2026 tax year. This initiative aims to ensure that millions of Canadians receive the government benefits they are entitled to. By 2028, it is expected that approximately 5.5 million individuals will benefit from this program.

During a press conference on October 10, Carney emphasized the importance of this initiative. He noted that many low-income Canadians do not file their taxes, often due to a lack of resources or the belief that their income is too low to warrant filing. "And that means too often that the people who most need benefits often don’t get them," he said.

The automatic tax filing process will simplify the tax experience for eligible Canadians. Those who qualify will only need to provide a few details and confirm their information on a pre-filled tax form from the Canada Revenue Agency (CRA). Carney stated, "And then they’ll receive all the benefits to which they are entitled."

The CRA plans to begin this initiative by preparing pre-filled tax returns online for about one million lower-income individuals with straightforward tax situations in 2026. The program will then expand to cover 5.5 million people by the 2028 tax year.

In a recent fall economic statement, the government highlighted the initial success of its pilot program. Carney remarked, "This program will pay out hundreds of millions of dollars in benefits in the next few years that would otherwise be left unclaimed, helping our most vulnerable get the support that they need."

This move is part of a broader effort to modernize the tax filing process in Canada, making it more accessible for those who may struggle with traditional filing methods. The government aims to ensure that all Canadians can easily access the benefits they deserve.