Advocates are welcoming the federal budget’s proposed change in the caregiver tax credit that would expand financial support to thousands more Canadians caring for loved ones with health conditions. Budget 2026 has proposed to make the Canada Caregiver Credit “fully refundable” to offer more support to low-income caregivers. According to the document, many caregivers’ incomes are too low to pay tax, so they are not eligible for the existing Canada Caregiver Credit. Caregivers refer to both paid and unpaid individuals who provide “essential support to Canadians with health conditions,” according to the federal government’s budget. The fully refundable credit would give $845 million in extra support over four years, starting in 2027-2028. After that, it would provide $245 million each year through 2030-31. The measure would offer support to 180,000 caregivers who are currently ineligible for the benefit, with 585,000 total caregivers expected to receive it. “Caregivers would receive up to $1,260 annually (for 2027, indexed thereafter),” read the document. The proposal comes as more than eight million caregivers struggle with basic living expenses and work more hours, according to the Caring in Canada 2026 report. Published by the Canadian Centre for Caregiving Excellence and based on a 2025 survey of more than 2,600 caregivers and care providers in Canada, the survey found that 49 per cent of caregivers face “financial strain,” while one in five caregivers said they spend more than $12,000 each year out of pocket. Dr. Adriana Shnall, director of integrated learning, caregiving and innovation at Baycrest in Toronto, said that the $105-per-month caregivers could receive is a small amount, but it is still meaningful. Shnall said finances are the top issue for family caregivers who face emotional and physical challenges as well. “I mean, listen, the money that the government’s proposing is a great step up, but nobody could support themselves on that money,” Shnall said in a video interview with CTVNews.ca on Friday. “So if you had to quit your job and this was all that you were getting, it would not get you far. But the fact that we have now a fully refundable credit tax credit for caregivers, that’s new and that’s very exciting.” Liv Mendelsohn, CEO of the Canadian Centre for Caregiving Excellence, said the change would make a “big tangible difference.” “The care crisis in Canada has become a real affordability crisis, as well. Care costs are on the rise; they are rising faster than inflation,” Mendelsohn said in a video interview with CTVNews.ca on Friday. She said the costs have “become really untenable.” “So, this is welcome relief for caregivers across the country,” Mendelsohn added.
