Budget 2026 proposes fully refundable Canada Caregiver Credit for low-income caregivers Budget 2026 proposes making the Canada Caregiver Credit fully refundable, extending support to 180,000 currently ineligible caregivers and 585,000 total recipients with up to $1,260 annually starting in 2027. Budget 2026 proposes making the Canada Caregiver Credit fully refundable so that low-income caregivers who pay little or no tax can receive the benefit. Advocates are welcoming the change, saying it would expand financial support to thousands more Canadians caring for loved ones with health conditions. The Canada Caregiver Credit is currently non-refundable, meaning many caregivers with incomes too low to pay tax cannot use it. According to the budget document, making it fully refundable would provide $845 million in extra support over four years, starting in 2027-2028. After that, it would provide $245 million each year through 2030-31. The measure would offer support to 180,000 caregivers who are currently ineligible for the benefit.Budget expands Canada Caregiver Credit benefitsIn total, 585,000 caregivers are expected to receive it. Caregivers would receive up to $1,260 annually for 2027, indexed thereafter, according to the document. Caregivers refer to both paid and unpaid individuals who provide essential support to Canadians with health conditions, according to the federal government budget. The proposal comes as more than eight million caregivers struggle with basic living expenses and work more hours, according to the Caring in Canada 2026 report.Published by the Canadian Centre for Caregiving Excellence and based on a 2025 survey of more than 2,600 caregivers and care providers in Canada, the survey found that 49 per cent of caregivers face financial strain. One in five caregivers said they spend more than $12,000 each year out of pocket.Experts weigh in on new caregiver support measuresDr. Adriana Shnall, director of integrated learning, caregiving and innovation at Baycrest in Toronto, said the $105 per month caregivers could receive is a small amount, but it is still meaningful. Shnall said finances are the top issue for family caregivers who face emotional and physical challenges as well.I mean, listen, the money that the government is proposing is a great step up, but nobody could support themselves on that money, Shnall said in a video interview with CTVNews.ca on Friday. So if you had to quit your job and this was all that you were getting, it would not get you far. But the fact that we have now a fully refundable credit tax credit for caregivers, that is new and that is very exciting.Advocates highlight caregiving affordability crisisLiv Mendelsohn, CEO of the Canadian Centre for Caregiving Excellence, said the change would make a big tangible difference. The care crisis in Canada has become a real affordability crisis, as well. Care costs are on the rise; they are rising faster than inflation, Mendelsohn said in a video interview with CTVNews.ca on Friday. She said the costs have become really untenable.So, this is welcome relief for caregivers across the country, Mendelsohn added. Advocates say caregivers are struggling with financial, emotional and physical challenges. The Canadian Centre for Caregiving Excellence said it is thrilled about the federal credit outlined in Budget 2026.