Budget 2026: What do proposed changes to caregiver credit mean for B.C.?

B.C. residents who care for family members at home could soon see changes to the caregiver tax credits.

Instead of non-refundable tax credits, Prime Minister Mark Carney has proposed making the credit fully refundable up to $1,260 per year, as part of the 2026 budget.

The government says this will support low-income caregivers, including part-time and unpaid family caregivers.

Currently, the caregiver credit is a non-refundable federal tax credit designed to help individuals who provide regular and consistent support to a spouse, common-law partner, or dependant with a mental or physical infirmity, according to Canada’s revenue agency.

The amount of money you can claim depends on circumstances, who you are supporting, and the dependent’s net income.

Currently, the caregiver credit is non-refundable, meaning it only lowers taxes owed rather than paying out cash.

Under proposed changes, caregivers would receive up to $1,260 annually for 2027, which would then be adjusted for inflation in the following years.

“In budget 2026, we’re making the Canada caregiver credit fully refundable — so even if you don’t earn enough to pay taxes, you still see the credit hit your bank account,” said Carney. “That means over $1,000 for more than 580,000 Canadian caregivers.”

It expands the benefit to an estimated 180,000 caregivers who currently receive nothing because their incomes are too low.

Making it refundable ensures lower-income caregivers — including part-time and unpaid family caregivers — receive direct financial support, according to the Canadian Centre for Caregiving Excellence, which advocated for government to make changes to the credit.

According to a May report by the centre, more than four in five caregivers reported that a refundable credit would help their financial situation.

The centre did not have information about the number of people who currently use the tax credit per province.

However, according to the report, only 11 per cent of caregivers in Canada have received caregiver benefits, and 52 per cent are not familiar with tax credits related to care.

There are an estimated 1.3 million unpaid family and friend caregivers in B.C., or roughly 28 per cent of the population, according to the Family Caregivers of B.C. That estimate does not break down how many of those caregivers who have applied for tax credits.

The non-profit organization says 80 per cent of caregivers in B.C. report fair or poor mental health.