Canada Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Canada. Updated for 2026.
C
Capital Gains Inclusion Rate
TaxThe percentage of capital gains included in taxable income: 50% for individuals, corporations, and trusts. The proposed increase to 66.67% was deferred and then cancelled in March 2025 — it never took effect.
View full definition →Catastrophic Impairment
InsuranceThe highest injury tier under Ontario SABS, qualifying for up to $1,000,000 in lifetime medical, rehabilitation, and attendant care benefits.
View full definition →F
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Canadian financial terms for the SABS reform and first-buyer era
Ontario's July 2026 SABS overhaul made most accident benefits optional, and the cancelled 2024 capital gains inclusion rate hike (scrapped in March 2025, leaving the rate at 50%) still shapes how Canadians plan large disposals. The FHSA (launched 2023) gives first-time buyers the best of RRSP deductions plus TFSA tax-free withdrawals. These terms cover the specific rules that apply to your insurance, investments, and home purchase in 2026.
Ontario SABS: mandatory vs optional benefits since July 2026
Medical, rehabilitation, and attendant care remain mandatory (capped at $3,500 MIG / $65,000 non-catastrophic / $1,000,000 catastrophic). Income Replacement, Non-Earner, Caregiver, Housekeeping, and Death benefits are now optional add-ons. Optional benefits only cover the named insured, spouse, dependants, and listed drivers: passengers and pedestrians cannot access them.
Capital gains and the FHSA advantage
The two-thirds inclusion rate (66.67%) applies to individual capital gains above $250,000/year since June 2024. Below $250K, the rate stays at 50%. The FHSA offers $8,000/year ($40,000 lifetime) with RRSP-style deductions AND TFSA-style tax-free withdrawals for a first home, no repayment required (unlike the Home Buyers' Plan).