The federal government announced its first order of business Wednesday (May 14) – a middle-class tax cut that was first promised during the election campaign. 

Federal Finance Minister François-Philippe Champagne said that the Liberal minority government's first order of business when the new session of Parliament will be tax relief for nearly 22 million Canadians. The government says the tax cut will save two-income families up to $840 a year in 2026.

A release from the Department of Finance Canada says that once legislated, the lowest marginal personal income tax rate will be reduced to 14 per cent from 15 per cent, effective July 1. It adds the cut is expected to result in more than $27 billion in tax savings over five years, beginning in 2025-26.

“Last month, Canadians called for change to bring down the cost of living and to put money back in their pockets. My government will be delivering that change­­—cutting taxes for the middle class and saving families up to $840 a year," Prime Minister Mark Carney said.

The next session of Parliament is expected to begin May 26, and the following day the government's mandate will be outlined with a throne speech from King Charles III.

The Liberal Party of Canada the tax cut on the first day of the election campaign.