Big tax changes are coming in 2026 — and physicians who rely on charitable giving, capital gains planning, or flow-through shares should take note.
The Alternative Minimum Tax (AMT) is being overhauled to target high-income earners who use legitimate tax strategies to lower their tax bills. While the government frames this as a fairness update, for many physicians, it could mean paying more tax — even when using deductions legally and responsibly.
Key Changes Physicians Need to Know:
- Capital gains will now be 100% included in AMT income (up from 80%)
- Charitable donation credits will be limited to 50% under AMT (down from 75%)
- The basic AMT exemption rises to $173,000 — but most physicians earn well above this
- Flow-through shares and other tax shelters will offer reduced AMT benefits
If your tax plan involves donating large amounts, realizing capital gains from investments, or using advanced investment structures, your AMT exposure may increase significantly in 2026.
What Should You Do?
- Consider timing major charitable gifts before 2026
- Model your income under both regular tax and AMT scenarios
- Reassess investment strategies, especially if using flow-through shares
- Speak to a tax advisor who understands physician-specific planning
The 2026 AMT changes don’t eliminate your tax strategies — but they do change the math. The earlier you adapt, the more control you’ll have over your tax outcomes.
Need help navigating these changes?
Visit MedTax.ca for physician-focused insights and personalized guidance. Contact us today for a free 30-minute consultation.
