Compliance

Automatic Tax Filing & Pre-Filled Returns: What Low-Income Canadians Should Know

From 2026 onward, CRA will introduce automated tax filing and pre-filled returns for around 1 million Canadians, targeting those with simple tax situations and low income to ensure they receive the benefits they qualify for.

By NomadicTax Research Team • 5-8 min read • March 28, 2026

## What Is Changing Beginning with the **2026 tax year**, the Canada Revenue Agency (CRA) will launch **automatic tax filing** for about **1 million lower-income Canadians** who have simple tax situations. By **tax year 2028**, this will scale up to reach **approximately 5.5 million people** through pre-filled returns via CRA’s *My Account*. ([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)) These measures aim to ensure individuals who often neglect tax filing because of complexity, cost, or misunderstanding receive benefits such as the **GST/HST Credit**, **Canada Child Benefit**, and other credits—benefits many are missing out on currently. ([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)) Complementing this, CRA’s **SimpleFile service** (available by phone, digital channels, and paper) continues to serve eligible individuals who have basic tax needs. Past pilots invited lower-income and non-taxable individuals who have either never filed a return, or who have gaps in their history. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2025-26-cra-departmental-plan.html?utm_source=openai)) --- ## Who Will Benefit Most These changes offer great value, especially for: * **People with low or fixed incomes** lacking traditional filing experience or having minimal tax obligations. * **Non-filers** who are legally entitled to credits but haven’t filed because they believe they owe nothing. * **Seniors**, **newcomers**, **persons with disabilities**, and **Indigenous populations** facing barriers to access and service. --- ## Practical Advice for Eligible Individuals **Check your eligibility early.** CRA will reach out by letters or notices, so ensure your address and contact info are updated. **Use CRA’s My Account tools.** With expanded pre-filled returns, your tax return will be partially filled using info CRA already has—like T4 slips, benefit payments, etc. Always review the info before submitting. **Consider using SimpleFile** if eligible—it’s meant to be very easy, with minimal inputs needed. For example, answering simple yes/no questions or validating identification. May be done by phone or online. **Keep records up to date.** Even if you're eligible for simplified filing, having documents like income slips, receipts, IDs ready helps verify accuracy. **Watch for deadlines and communications.** The pilot phases, scaling, and roll-outs will have deadlines to opt in or confirm participation. Missing letters or failing to act may mean missing out. --- ## Example Laura, 65, living on retirement income of $18,000/year, receiving CPP and OAS, no additional taxable income. Previously, she thought she didn’t need to file. Beginning in **2026**, CRA may automatically file a return for her, ensuring she gets her GST/HST Credit and any other benefit she qualifies for—worth hundreds of dollars more than leaving benefits unclaimed. --- ## Impact for Tax Professionals & Advisors * Tax advisors should help clients verify auto-file data. Mistakes in pre-filled info can lead to issues or delays. * For those whose tax situation is slightly more complex (investment income, rental, self-employment), auto-file may not apply—but careful planning around these changes may yield savings if parts fall into eligibility. * Organizations working with vulnerable communities (non-profit, legal aid, immigrants) should help spread awareness—many will benefit but won’t know these services are becoming available. This shift toward simplified filing is a big stride for tax **compliance**, fairness, and ensuring benefits reach those who have historically missed out. Be ready to take action in 2026.