Major Changes Coming to Canada in October 2026

Introduction

October 2026 brings several federal changes that may affect Canadians in different ways. Some updates involve government benefits and employment support, while others affect taxes, healthcare, transportation, consumer rules, and important deadlines.

For some people, October means higher benefit payments. For others, it marks the end of temporary Employment Insurance support or the start of a new application deadline. Meanwhile, several proposed measures are still moving through Parliament and should not be treated as final until they become law.

Here are the key federal updates to watch during October 2026.

Taxpayers Face New CRA Interest Rates

The Canada Revenue Agency (CRA) will use new prescribed interest rates from October 1 to December 31, 2026.

During this period:

• Overdue income tax, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums will carry a 7% interest rate.
• Non-corporate taxpayer overpayments will have a prescribed rate of 5%.
• Corporate overpayments will have a rate of 3%.
• The rate for employee and shareholder low-interest loan benefits will be 3%.
• The applicable corporate loan rate will be 6.29%.

Therefore, people who owe money to the CRA should be aware that interest will continue to accumulate on overdue amounts.

A New Tax Filing Service Is Coming

The CRA plans to launch a pre-filled tax return service in March 2027. Around one million Canadians could receive invitations during the first year.

People who may qualify should make sure their 2025 tax return is filed by October 31, 2026.

Potential participants also need an active CRA My Account, electronic correspondence enabled and a relatively simple, lower-income tax situation.

Canada Carbon Rebate Deadline Is Still Proposed

Bill C-31 proposes October 30, 2026, as the deadline for certain tax returns, adjustments or determinations that could result in outstanding Canada Carbon Rebate amounts.

However, the bill was still before the House Standing Committee on Finance when this information was published. Therefore, this deadline should be treated as proposed, not enacted law.

Some Temporary EI Support Is Ending

Several temporary Employment Insurance measures introduced in 2025 are scheduled to end in October.

The temporary waiver of the normal one-week EI waiting period applies to qualifying benefit periods that begin on or before October 10, 2026.

After that point, the regular one-week waiting period will apply to new qualifying claims.

Another temporary measure changed how certain severance payments, vacation payouts and other separation amounts were treated when calculating EI benefits. That measure is also scheduled to end.

In addition, eligible long-tenured workers received up to 20 extra weeks of regular EI benefits under another temporary measure. This could increase the maximum entitlement to 65 weeks instead of the usual 45 weeks for qualifying claims.

These temporary measures were extended through October 10, 2026.

Seasonal Workers Have a Separate Extension

The situation is different for certain seasonal workers.

Eligible seasonal claimants in 13 targeted EI economic regions can receive up to five additional weeks of regular EI benefits, for a maximum of 45 weeks.

The federal government has extended this measure until October 2028, following Royal Assent in June 2026.

Dental Care Applications Remain Open

The Canadian Dental Care Plan (CDCP) has opened applications for the 2026–2027 benefit period, which runs from July 1, 2026, to June 30, 2027.

To qualify, applicants must generally:

• Have no access to private dental insurance or coverage.
• Have filed the required Canadian tax returns.
• Have an adjusted family net income below $90,000.
• Be a Canadian resident for tax purposes.

Around 4.76 million people were enrolled in the plan as of August 31, 2026.

People who had CDCP coverage during the previous benefit period but missed the June 1 renewal deadline can submit a new application. However, the new coverage will not apply retroactively to dental care received during a gap in coverage.

The co-payment depends on family income:

Adjusted family net income	CDCP co-payment
Below $70,000	0%
$70,000–$79,999	40%
$80,000–$89,999	60%

Additional charges from dental providers may still apply.

Canada Post Starts More Community Mailbox Conversions

October also marks the beginning of another stage in Canada Post’s move away from traditional door-to-door delivery for some addresses.

In October, approximately 7,000 addresses in Sept-Îles, Quebec, and another 16,000 in Winnipeg, Manitoba, are scheduled to move to community mailbox delivery.

That means roughly 23,000 addresses are included in these initial conversions.

However, the broader transition will take much longer. Canada Post plans to convert approximately four million remaining door-to-door addresses over about five years. As of September 16, around 686,000 addresses across 55 communities had been identified for conversion during late 2026 or 2027.

People with functional limitations may qualify for accommodations through the Delivery Accommodation Program, including easier-to-use mailbox options and, in some situations, continued home delivery.

Older Canadians Will See Higher OAS and GIS Payments

Older Canadians receiving Old Age Security (OAS), the Guaranteed Income Supplement (GIS), or related allowances will see a 1.4% increase for the October-to-December 2026 quarter.

The adjustment applies to:

• OAS pension
• Guaranteed Income Supplement
• Allowance
• Allowance for the Survivor

The new rates begin with the October 28 payment.

People receiving partial OAS will also see their payment increase proportionally. In addition, eligible GIS recipients will receive a higher supplement alongside the OAS adjustment.

Direct Deposit Can Now Be Managed Through MSCA

My Service Canada Account (MSCA) now provides OAS and GIS recipients with an online option to manage their direct-deposit information.

However, there is an initial activation step. Recipients must first contact Service Canada by phone or visit a Service Canada location to activate the required notifications and alerts.

After that, banking information can be managed through the OAS section of MSCA.

Because banking changes can take up to 30 days, recipients should make updates well ahead of their next scheduled payment.

New Federal Pharmacy Rules Take Effect

One of the more significant regulatory changes arrives on October 1, when Canada introduces a consolidated framework for controlled substances.

The new system brings together rules that previously covered different categories of controlled drugs, including narcotics, benzodiazepines and other controlled substances.

For patients and pharmacies, some of the practical changes include expanded federal authority for:

• Extending certain controlled-substance prescriptions within the applicable two-year framework.
• Transferring eligible prescriptions between pharmacies.
• Certain therapeutic substitutions where provincial rules allow them.
• Using central-fill pharmacy models for controlled substances.
• Returning unwanted controlled medications through more authorized collection locations.
• Carrying up to a 90-day supply of certain prescribed controlled drugs for international trips lasting more than 30 days, subject to the applicable requirements.

Pharmacy technicians will also receive specific federal authority for certain activities involving transfers, deliveries, returned medications, records and drug destruction.

However, federal rules do not operate independently of provincial and territorial regulations. What a pharmacist can actually do may still depend on local professional scope-of-practice rules.

Fuel Tax Relief Extension Is Still Being Considered

Another major October development concerns fuel prices, but this measure is not yet law.

Bill C-38 proposes extending the federal fuel excise-tax suspension on gasoline, diesel and specified aviation fuels until January 31, 2027.

Under the proposal, partial rates would then apply from February 1 to March 31, 2027:

• Gasoline and unleaded aviation gasoline: 5¢ per litre
• Leaded aviation gasoline: 5.5¢ per litre
• Diesel and aviation fuel: 2¢ per litre

Regular rates would return on April 1, 2027, if the proposal becomes law.

The Department of Finance estimates that the current full suspension saves more than $5 on a typical 50-litre gasoline purchase. The proposed extension would provide an additional $2.9 billion in relief, bringing the estimated total fuel-tax relief for 2026–2027 to $5.3 billion.

Bill C-38 passed second reading on September 22 and was referred to the Standing Committee on Finance. It still needs to complete the parliamentary process and receive Royal Assent before the proposed extension becomes law.

Tobacco Retailers Face an October Deadline

October 31 is an important compliance date for tobacco retailers.

By this deadline, retailers must sell cigarette packages carrying the required health information on the extended upper slide flap.

Manufacturers had an earlier deadline of July 31, 2026, to distribute packages meeting the new requirements.

Canada has also become the first country to require health warnings directly on individual cigarettes, with the requirement for king-size cigarettes having started in July 2024.

CAF Class-Action Claims Have an October 15 Deadline

Current and former Canadian Armed Forces members covered by the systemic-racism class-action settlement have until October 15, 2026, to submit individual claims.

Depending on the applicable settlement category and claims process, compensation can range from $5,000 to $35,000.

Because this is a settlement deadline, eligible members should review the applicable categories and complete their claims before the October 15 cutoff.

Health Canada Updates Drug Safety Reporting

Health Canada is also introducing several related changes to drug safety reporting on October 1.

The updates affect how Canadian market-authorization holders report certain actions taken by foreign regulators involving the same products.

The changes include new reporting forms, an updated list of foreign regulatory authorities and revised requirements for reporting certain international actions such as recalls, safety communications, reassessments and label changes.

Health Canada is also updating guidance for annual, interim and issue-related safety reports involving marketed drugs and natural health products.

These changes mainly affect regulatory reporting, but they form part of Canada’s broader system for monitoring the safety of medicines and natural health products.

What Canadians Should Keep in Mind This October

October 2026 brings changes across several areas of everyday life. Some updates involve direct financial effects, such as higher OAS and GIS payments or changes to EI support. Others involve deadlines, healthcare access, mail delivery, pharmacy rules and regulatory requirements.

Most importantly, not every announcement has the same legal status. Measures such as the proposed Canada Carbon Rebate deadline and fuel-tax extension still depend on the parliamentary process.

Therefore, Canadians should check the specific rules, eligibility requirements and deadlines that apply to their circumstances before taking action.

Key dates to remember include October 10 for several temporary EI measures, October 15 for eligible CAF settlement claims, October 30 for the proposed Canada Carbon Rebate deadline, and October 31 for CRA pre-filled tax-return eligibility steps and tobacco retail compliance.

Get in touch with SPS Global

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