Tax Rate Reduction - Personal Tax
Please find here an excerpt from the Government of Canada website:
The government is moving forward with the proposal to deliver tax relief for Canadians by reducing the lowest marginal personal income tax rate from 15 per cent to 14 per cent, effective July 1, 2025.
Nearly 22 million Canadians are expected to benefit from this measure. The middle-class tax cut would reduce the tax rate that is applied to the first $57,375 (in 2025) of an individual's taxable income, regardless of their income level. As shown below, the bulk of total tax relief will go to those with incomes in the two lowest tax brackets, including nearly half to those in the first bracket. This measure is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in 2025-26.
More details can be found using this link:
https://www.canada.ca/en/department-finance/news/2025/05/delivering-a-middle-class-tax-cut.html
Please let us know if you have any questions.
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