Canada’s new 2025 tax cut lowers the lowest federal income tax rate from 15% to 14%. Find out who benefits, how much you’ll save, and what it means for your paycheque.
Welcome to the Bigger Table podcast, where we explore meaningful changes with far-reaching effects. In this episode, we delve into the exciting news for millions of Canadians—Prime Minister Mark Carney's government announced a new income tax cut. This episode takes you through the changes starting July 1st, 2025, when the feder...
Canada’s new 2025 tax cut lowers the lowest federal income tax rate from 15% to 14%. Find out who benefits, how much you’ll save, and what it means for your paycheque.
Welcome to the Bigger Table podcast, where we explore meaningful changes with far-reaching effects. In this episode, we delve into the exciting news for millions of Canadians—Prime Minister Mark Carney's government announced a new income tax cut. This episode takes you through the changes starting July 1st, 2025, when the federal tax rate on the first portion of income will decrease from 15% to 14%.
This seemingly small change promises significant annual savings, potentially putting hundreds of dollars back into the pockets of Canadians earning a paycheck, particularly benefiting middle and lower-income families. For 2025, an individual earning $50,000 could see savings of approximately $287, with two-income households seeing $574 in extra take-home pay. And in 2026, the savings will double as the new tax rate fully applies.
We discuss the seamless implementation of these changes by the Canada Revenue Agency and how it will affect your paycheck without you needing to take any action. This move signifies a political shift by the new government, focusing on affordability and economic fairness, a promise made by PM Mark Carney and echoed by Finance Minister François-Philippe Champagne.
While this tax cut stands as a boon for hard-working Canadians, it's not without controversy. Critics question the impact of a $27 billion relief on federal revenues and underline the absence of compensatory measures targeting wealthier Canadians or corporations. Yet, the intention remains clear - providing immediate financial relief to citizens.
This episode gives you the complete breakdown of the first of potentially many reforms under the new leadership and encourages a watchful eye on future legislative developments. Stay informed on how upcoming policy changes can affect your financial standing. Enjoy the conversation and keep advocating for a more inclusive and progressive society with the Bigger Table podcast.
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