The Making Life More Affordable for Canadians Act, Bill C-4, received Royal Assent bringing key affordability measures into law which will save Canadians hundreds of dollars each year. These measures include:
A middle-class tax cut: By lowering the first marginal personal income tax rate from 15 per cent to 14 per cent since July 1, 2025, nearly 22 million Canadians will benefit from tax relief of up to $420 per person, saving two-income families up to $840 this year. The bulk of tax relief will go to those with incomes in the two lowest tax brackets (a taxable income under $117,045 in 2026). Canadians who have payroll deductions would have seen this change starting July 2025 – those without payroll deductions will realize this tax relief this spring, when they file their 2025 income tax return.
The first-time home buyers’ rebate: Canada’s new government is eliminating the Goods and Services Tax (GST) for first-time home buyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million – for agreements of purchase and sale entered into on or after March 20, 2025, and before 2031. This tax cut will save Canadians up to $50,000—allowing more young people and families to enter the housing market and make the goal of home ownership a reality for more Canadians.
Permanently removing the federal consumer fuel charge from legislation: Canada’s new government cancelled the consumer fuel charge and removed the requirement for provinces and territories to have a consumer-facing carbon price as of April 1, 2025. Bill C-4 gives Canadian consumers and businesses certainty that the consumer carbon price is being permanently removed by eliminating it from federal legislation.