Income tax cut for middle class to take effect tomorrow: Mark Carney

Prime Minister Mark Carney has announced that income tax cuts for the middle class will take effect tomorrow. The government has reduced the lowest personal income tax rate from 15 to 14 per cent. According to the Carney government's estimates, 22 million Canadians will benefit from this.

PM Carney had promised this during the election campaign and said after the election that this cut would be implemented from Canada Day. This tax cut will apply to the two lowest tax brackets, the first whose taxable income in 2025 is up to $114,750 and the second whose income will be up to $57,375 in the first bracket.

According to the government, there will be a maximum saving of $420 per individual and $840 per couple when filing a return in 2026. This cut will cost the government $27 billion in personal income tax revenue over the five years starting in the 2025-26 fiscal year.