Ottawa defers effective date of capital gains changes to 2026, promises exemptions [Video]

Finance Minister Dominic LeBlanc attends a first ministers meeting in Ottawa on Wednesday, Jan.15, 2025. THE CANADIAN PRESS/Sean Kilpatrick

The federal government says it is deferring the implementation of a hike to the capital gains inclusion rate to next year and plans to introduce new exemptions to ensure most middle-class Canadians do not pay more tax if the rate becomes official.

The deferral announced by Finance Minister Dominic LeBlanc on Friday delays the implementation of the change from June 25, 2024 to Jan. 1, 2026.

LeBlanc promised to table legislation related to the capital gains inclusion rate changes along with an increase to the lifetime gains exemption and a new incentive for entrepreneurs “in due course.”

“The deferral of the increase to the capital gains inclusion rate will provide certainty to Canadians, whether they be individuals or business owners, as we quickly …