Federal Government announces middle class tax cut

The Minister of Finance and National Revenue François-Philippe Champagne, has announced that one of the first orders of business on the federal government’s legislative agenda for the new session of Parliament will be tax relief for nearly 22 million Canadians.

The tax cut will save two-income families up to $840 a year in 2026.

The lowest marginal personal income tax rate will be reduced from 15 per cent to 14 per cent, effective July 1. This measure is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in 2025-26.

Prime Minister Mark Carney said, “Last month, Canadians called for change to bring down the cost of living and to put money back in their pockets. My government will be delivering that change­­—cutting taxes for the middle class and saving families up to $840 a year.”