Canadian Tax Filing Delays Signal Broader Engagement Challenges

Event summary

  • 28% of Canadians (approximately 9 million) have not filed their taxes as of April 27, 2026, up from 22% (7.3 million) in 2025.
  • Procrastination (69%) and concerns about owing money (7%) are primary drivers of the delay, while 5% cite issues accessing CRA My Account.
  • Ontario, Saskatchewan & Manitoba, and British Columbia exhibit the highest rates of delayed tax filing.
  • H&R Block Canada’s ‘Second Look’ program finds that 64% of Canadians miss out on an average of $2,725 in credits and benefits when filing elsewhere.

The big picture

The rise in delayed tax filings suggests a growing disconnect between Canadians and the tax system, potentially driven by complexity, digital access challenges, or a lack of financial literacy. This trend presents both a risk and an opportunity for companies like H&R Block, which are positioned to capitalize on the demand for assisted tax preparation services, but also face pressure to address the underlying issues contributing to non-compliance. The data underscores a broader challenge for government agencies in ensuring equitable access to and understanding of essential financial services.

What we're watching

Digital Divide
The 5% reporting CRA My Account access issues highlights a potential digital literacy or infrastructure gap impacting tax compliance, which could necessitate targeted support programs.
Service Adoption
H&R Block’s ‘Second Look’ findings suggest a significant opportunity for tax preparation services to capture market share by educating Canadians on unclaimed benefits, but also indicates a broader lack of trust or understanding of the tax system.
Regulatory Risk
Increased late filing rates and reported difficulties with CRA access could prompt regulatory scrutiny of the tax filing process and potentially lead to changes impacting both taxpayers and service providers.

Related topics

Financial Services