Canadian parliament in Ottawa

The 2022 federal budget left some third rails of Canadian tax policy untouched: the principal residence exemption remains intact, and the capital gains inclusion rate remains 50%.

However, the feds introduced an anti-flipping tax as well as measures aimed at supporting new homebuyers. In good news for small business owners, eligibility for the 9% small business tax rate on the first $500,000 in active business income has expanded, and the government is consulting on Bill C-208.