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
InsuranceAn Ontario SABS injury designation under regulation s.3.1 that raises the standard combined medical, rehabilitation and attendant-care limit to $1 million.
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 (standard limits $3,500 minor / $65,000 non-catastrophic / $1,000,000 catastrophic). Income Replacement, Non-Earner, Caregiver, Housekeeping and Death benefits are optional on new policies. At renewal, prior optional benefits normally continue unless the insured and insurer agree in writing to change them. Optional benefits cover the named insured, spouse, dependants and policy-listed drivers; a passenger or pedestrian must check priority-insurer rules. [Ontario SABS s.2](https://www.ontario.ca/laws/regulation/100034) sets out the transition.
Capital gains and the FHSA advantage
The proposed two-thirds inclusion rate on gains above $250,000 was cancelled; it never took effect. The 2026 general inclusion rate remains one-half. [Canada Budget 2025](https://budget.canada.ca/2025/report-rapport/pdf/budget-2025.pdf) confirms cancellation. 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).