At a glance
- Budget 2026 proposes GST/HST relief for the professional services of qualifying massage therapists and for certain devices used in alternating electric field therapy for cancer.
- Certain large financial institutions could apply for pre-approval of GST/HST input tax credit allocation methods for three consecutive fiscal years.
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The 2026 federal budget proposes Goods and Services Tax (GST) and Harmonized Sales Tax (HST) measures for certain healthcare services and products, as well as Input Tax Credit (ITC) allocation changes for certain financial institutions. The key details are outlined below.
What GST/HST health measures are proposed?
The 2026 budget proposes GST/HST tax relief for certain health care services and products.
It proposes to add qualifying massage therapists to the list of health care practitioners whose professional services are exempt from the GST/HST.
It also proposes to add devices that are specially designed for alternating electric field therapy for use by an individual with cancer to the list of medical devices eligible for zero-rating under the GST/HST.
These measures would apply to qualifying supplies made after Nov. 5, 2026.
How would the federal budget 2026 change ITC credit pre-approval for financial institutions
Businesses that make both taxable and exempt supplies are generally eligible to claim ITCs to recover GST/HST paid on inputs used to make taxable supplies, but not on inputs used to make exempt supplies. Where an input is used to make both taxable and exempt supplies, a business must use an allocation method to determine the extent to which the input is used to make taxable supplies.
Budget 2026 proposes to allow certain large financial institutions to apply for pre-approval of their GST/HST input allocation methods for three consecutive fiscal years, instead of a single fiscal year.
This measure would apply to fiscal years of a financial institution beginning after June 30, 2027.
The information in this publication is current as of November 5, 2026
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