Average family to save $280 per year from Liberal tax cut: PBO

By Canadian Press on June 18, 2025.

OTTAWA — The parliamentary budget officer estimates the average Canadian family will save $280 on their taxes next year thanks to the Liberal government’s planned income tax cut.

A one-percentage-point cut to the bottom income tax bracket was a pillar of the Liberal campaign during the spring federal election.

Prime Minister Mark Carney’s plan pitched annual savings of up to $825 per dual-income family.

But the parliamentary budget officer says in a new analysis that the average family likely won’t get that much back.

A couple with a child who are both earning in the second income bracket would get closest, with $750 in average savings, but most single Canadians and seniors are expected to save less.

The Liberals tabled a ways and means motion last month that puts the tax cut in place starting July 1, but legislation to enact the change is still making its way through Parliament.

This report by The Canadian Press was first published June 18, 2025.

Craig Lord, The Canadian Press