May 14, 2025 – Ottawa, Ontario – Department of Finance Canada

Last month, Canadians called for a serious plan for change to address the rising cost of living that has eroded Canadians’ quality of life. Change that puts more money in the pockets of Canadians. Change that builds a more affordable Canada. The government is delivering that change.

The Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, today announced one of the first orders of business on the government’s legislative agenda for the new session of Parliament: tax relief for nearly 22 million Canadians, saving two-income families up to $840 a year in 2026.

Once legislated, the lowest marginal personal income tax rate will be reduced from 15 per cent to 14 per cent, effective July 1, 2025. This tax cut will help hard-working Canadians keep more of their paycheques to spend where it matters most.  This measure is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in 2025-26.