July Brings Major Federal Changes Across Canada

July 2026 will bring several federal changes, including new justice laws, higher benefit payments, tax updates, business registration rules and travel savings. Most apply across Canada, though payroll changes will be felt more directly in British Columbia and Prince Edward Island.

Justice Laws Change Mid-Month

The Bail and Sentencing Reform Act takes effect July 15 after receiving Royal Assent on June 15. Bill C-14 makes more than 80 changes to the Criminal Code, the Youth Criminal Justice Act and the National Defence Act.

The law expands reverse-onus bail rules for repeat violent offences, organized crime, human trafficking, extortion and auto theft. Courts must also consider random violence, outstanding charges and possible weapons bans.

Sentencing rules are also tougher. New aggravating factors apply to repeat violent crime, offences against first responders, organized retail theft, transit worker assaults and damage to essential infrastructure. House arrest is removed for certain serious sexual offences. Permanent and temporary residents convicted of serious crimes may also face immigration consequences.

The Combatting Hate Act comes into force July 18. It creates new offences involving hate-motivated conduct, including intimidation or obstruction at places of worship, schools and community centres. It also creates a separate hate crime offence and bans public display of certain terrorism and Nazi symbols.

Benefit Payments Increase

The CRA will move income-tested benefits to 2025 tax return data in July. The Canada Groceries and Essentials Benefit launches July 3, replacing the GST/HST credit with a 25 per cent increase for five years. More than 12 million Canadians are expected to receive payments, with a maximum of $679 a year for singles.

The Advanced Canada Workers Benefit begins a new cycle July 10. Eligible singles can receive up to $1,665 annually, while families can receive up to $2,869.

The Canada Child Benefit rises July 20 by 2 per cent. Maximum annual payments increase to $8,157 for children under six and $6,883 for children aged six to 17. The Canada Disability Benefit rises to $204.20 a month.

Old Age Security increases by 1.2 per cent on July 29, with maximum monthly amounts of about $751.97 for seniors aged 65 to 74 and $827.17 for those 75 and older. GIS payments will also be recalculated.

Taxes, Registration And Oversight

Updated CRA payroll formulas begin July 1. B.C.’s lowest provincial tax rate rises to 5.60 per cent for 2026, while P.E.I. adds a 20 per cent bracket for income above $200,000. Both are prorated for payroll.

Starting July 14, CRA Business Registration Online will require secure sign-in. Immigration consultant rules also change July 15, giving the College of Immigration and Citizenship Consultants stronger discipline powers, higher penalties and a compensation fund.

Other July Changes

Airline passenger liability insurance rises July 1 from $595,000 to $735,000 per seat. Tobacco manufacturers face new slide-flap health message rules by July 31. New toxic substance rules also open a July 1 to July 30 permit window.

Canadian Forces Housing Differential rates update July 1. The Canada Strong Pass continues until September 7, offering free Parks Canada admission, discounted camping, youth museum access and VIA Rail discounts.