Tax Planning
Automatic Tax Filing for Low-Income Canadians: How Bill C-31 Will Change Your Tax Year 2026
Automatic filing could revolutionize tax filing for millions; here’s what Bill C-31 means for individuals on lower incomes, including timelines and eligibility.
By NomadicTax Research Team • 5-8 min read • May 26, 2026
## What is Bill C-31 and Why It Matters
Bill C-31, introduced May 7, 2026, as Budget 2025 Implementation Act, No. 2, includes a measure to **automatically file federal tax returns** for low-income Canadians for the 2026 tax year. Its goal: reach up to **5.5 million** people by the 2028 tax year. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/05/minister-champagne-introduces-second-piece-of-legislation-to-implement-budget-2025-canada-strong.html?utm_source=openai)) This would ensure eligible Canadians receive benefits and credits they may miss simply because they didn’t file. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
### Who’s Eligible?
Eligibility is intended for individuals with low income and simple tax situations. The government hasn’t released final details yet—consultations and administrative design are still underway. Automatic filing aims to cover those who typically get the **GST/HST credit**, **Canada Child Benefit**, and similar programs. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
## Timeline & Effective Dates
- Measure applies to **tax year 2026**, meaning returns for that year will be auto-filed if you qualify. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
- Roll-out gradual: full reach of 5.5 million by **2028**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/05/minister-champagne-introduces-second-piece-of-legislation-to-implement-budget-2025-canada-strong.html?utm_source=openai))
## Practical Steps You Should Take
Even with automatic filing, there are actions you can take to prepare:
- Confirm your information with CRA is current—address, social insurance number, marital status etc.
- Keep documentation handy: slips, T4s, other income statements. CRA will still need accurate source data.
- For those used to filing claims manually, understand how and when auto-filing occurs; look out for CRA notices.
- Special attention if you are a newcomer, have multiple income sources, or are unsure if you qualify.
## Examples
- **Single parent with child under 18**, modest income below GST credit threshold, typically files for benefits but misses deadline: with auto-filing, CRA files for them, so they get Child Benefit and GST/HST automatically.
- **Retiree with pension income only**, qualifies for seniors’ benefits but forgets to file: auto-filing ensures benefit access without needing to file manually.
## Actionable Insights
1. Monitor CRA-issued notices this summer to see if you are being included.
2. If not, still file manually—auto-filing doesn’t override voluntary filing if you want to claim deductions or complex credits.
3. Use CRA’s **SimpleFile** or similar tools to verify CRA has your correct data. If corrections are needed, do them ahead of time.
4. Watch for official guidance from CRA once Bill C-31 passes into law, since regulations and forms will follow.
**Bottom line**: Bill C-31’s automatic filing promises real relief for many — less paperwork, more reliable access to benefits. But it’s early days; being proactive ensures you’re ready when it kicks in.