The Prime Minister of Canada, Mark Carney, had made it the announcement last May, and what was to happen happened: a drop in taxes for the middle class came into force this week. Citizens will therefore see their next pay be a little more generous.
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Mark Carney had made the announcement on May 14, at the first meeting of his ministerial cabinet held the day after his sworn.
Since July 1, the marginal tax rate of the first income section has increased from 15 % to 14 % for individual income below $ 57,375 (or $ 114,750 for a couple). For example, a two -income family could save up to $ 840 per year from 2026.
Concretely, this drop in tax, which will affect around 22 million people, means that employers will now retain a little less money on each pay check, which gives a welcome little boost to your budget.
Even if the tax reduction has not yet been officially adopted as law, the government has chosen to implement it immediately, anticipating its imminent adoption in the House of Commons.
According to the Ministry of Finance, this measure would represent more than $ 27 billion in savings for the Canadian population over five years, from the 2025-2026 fiscal year.
“Each person should be able to obtain the necessities, feel safe and get out of it financially. This tax reduction aims to help them achieve them, “said Federal Minister for Finance and National Revenue at the time, François-Philippe Champagne.
