The federal government’s legislation reducing the lowest personal income tax rate to 14 percent will save the average taxpayer $190 annually from 2026 to 2028, according to the Parliamentary Budget Office (PBO).
The Liberal government recently introduced legislation providing an income tax cut for Canadians, saying it would save a two-income family up to $840 a year starting next year. The lowest tax rate will be reduced from 15 percent to 14 percent.
The PBO report said that couples with children in the second tax bracket could save up to $750 in 2026. Overall, the report said “census families” would save $280 per year that year.
The PBO expects the average Canadian taxpayer will save $90 in 2025, $190 in the three years following, and $200 in 2029. The report noted that savings were lower in 2025 because the government will first lower the tax rate to 14.5 percent in 2025, before dropping it to 14 percent the year after….