Tax Exemption: These people will get huge tax exemption, government made a big announcement

This tax relief will be given mainly to those citizens whose annual income is less than US $ 114,750. Of these, almost half of the benefits will be given to those whose income is $ 57,375 or less.

Canda new Income Tax Rate: With the formation of the new government in Canada, the middle class there has got income tax relief. The new government has made this big announcement with the start of its new parliamentary session. From July 1, 2025, the minimum rate of personal income tax will be reduced from 15 percent to 14 percent. This decision will benefit about 22 million Canadian citizens. According to the Canadian government, two-income families can save up to 840 US dollars (about Rs 70,000) annually by the year 2026. This decision is considered an important step towards providing relief to the common citizens amid the rising cost of living.

Canadian Prime Minister Mark Carney wrote on the social media platform X, “The new cabinet of Canada held its first meeting today. We made several decisions. They also include tax cuts for the middle class. From July 1, the hardworking people of Canada will now be able to keep more money from their salary.” He said that his government is fulfilling the promise of putting money directly into the pockets of the people.

Canada’s new Finance and National Revenue Minister François-Philippe Champagne said, “With today’s tax cut, we are taking a step towards economic growth. This decision will help hardworking Canadians spend on essential things and give them an opportunity to move forward financially.” He also said that this relief is important amid the current global trade and tariff uncertainties.

Effect of tax cut

The tax rate is being reduced in the middle of the year, so the average rate in the financial year 2015 will be 14.5%. From 2026, this rate will be fully 14%. The Canada Revenue Agency will update the tax deduction tables from July 2025 so that less tax is deducted from the salary of employees. If there is no tax deduction, this exemption will be applied while filing tax returns.

Who will get the most benefit?

This tax relief will be given mainly to those citizens whose annual income is less than US $ 114,750. Of these, almost half the benefits will go to those whose income is $57,375 or less.

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