1 week ago
Almost 22 million Canadians getting income tax cut next week
Canada is set to move forward with its proposed middle-class income tax cut on Tuesday.The federal government will deliver tax relief to Canadians by reducing the lowest marginal personal income tax rate from 15 per cent to 14 per cent, effective July 1.According to Finance Canada, nearly 22 million Canadians are expected to benefit from the income tax cut.The measure would reduce the tax rate that is applied to the first $57,375 of an individual's taxable income in 2025, regardless of their income level.A majority of the tax relief will go to Canadians in the two lowest tax brackets (those with taxable income under $114,750 in 2025), including nearly half to those in the first bracket ($57,375 and below in 2025).Ottawa says the maximum tax savings will be $420 per person and $840 per couple in 2026. All in all, this is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in the 2025/2026 tax year.Since the tax cut will take effect halfway t...
Economics
