Overview

• The lowest marginal personal income tax rate will drop from 15% to 14% starting July 1, 2025, pending parliamentary approval of the legislation.
• This tax cut is expected to benefit nearly 22 million Canadians, with two-income families saving up to $840 annually by 2026.
• The Canada Revenue Agency will adjust payroll tables on July 1, ensuring paycheques reflect the tax cut in real time.
• The measure fulfills a key campaign promise by Prime Minister Mark Carney's administration, announced immediately after the new Cabinet was sworn in.
• The government frames the tax cut as a response to cost-of-living pressures and a strategy to boost economic growth by increasing disposable income.