This month, Bill C-4, the Making Life More Affordable for Canadians Act, received Royal Assent. With this legislation now law, key measures will begin putting money back into the pockets of Canadians across the country. Our government is taking concrete steps to make everyday life more affordable for Canadians. By focusing on what we can control we are building a stronger, more resilient economy and delivering real, measurable support to help Canadians get ahead.
A major component of the legislation is a middle-class tax cut. Since July 1, 2025, the first marginal personal income tax rate has been reduced from 15 per cent to 14 per cent. Nearly 22 million Canadians will benefit, receiving tax relief of up to $420 per person—or $840 for a two-income household. Most of this tax relief goes to Canadians in the lowest two tax brackets, including nearly half to those earning $58,523 or less. For those whose income was not subject to payroll deductions, these savings will be realized this spring when they file their 2025 tax return.
Bill C-4 also strengthens support for new homeowners through the first-time home buyers’ rebate. By eliminating the GST on new homes up to $1 million and reducing it on homes between $1 million and $1.5 million first-time buyers can now save up to $50,000. With Royal Assent secured, the Canada Revenue Agency can begin processing rebate claims, opening the door for more young people and families to enter the housing market.
By delivering tax relief and supporting homeownership, this legislation reflects our government’s commitment to building a stronger, more affordable Canada for everyone. That’s how we build Canada strong.