Prime Minister Mark Carney and Canada's department of finance have announced a major income tax cut promising billions of dollars in savings. One of our first legislative priorities this session is a middle class tax cut for 22 million Canadians," Carney shared in an X post on Thursday. The rate applying to most non-refundable tax credits will continue to be the same as the lowest personal income tax rate. "This means that, effective July 1, individuals with employment income and other income subject to source deductions could have tax withheld at 14 per cent," explained Finance Canada. "Otherwise, individuals will realize this tax relief when they file their 2025 tax returns in spring 2026."