The Making Life More Affordable for Canadians Act (Bill C‑4) received royal assent on 12 March 2026, introducing measures that lower the middle-class tax rate, provide GST relief for first-time home buyers, and permanently eliminate the federal consumer fuel charge—helping Canadians save hundreds to thousands of dollars each year.
Canada’s Department of Finance confirmed that the Making Life More Affordable for Canadians Act (Bill C‑4) obtained royal assent and entered into force on 12 March 2026. The bill introduces key measures to reduce costs, helping Canadians save hundreds of dollars each year.
These measures include:
- A middle-class tax cut: By lowering the first marginal personal income tax rate from 15% to 14% since 1 July 2025, nearly 22 million Canadians will benefit from tax relief of up to CAD 420 per person, saving two-income families up to CAD 840 this year. The bulk of tax relief will go to those with incomes in the two lowest tax brackets (i.e., those with taxable income under CAD 117,045 in 2026), including nearly half to those in the first bracket (CAD 58,523 and below in 2026). Canadians whose 2025 income was not subject to payroll deductions will realise this tax relief this spring, when they file their 2025 income tax return.
- The first-time home buyers’ rebate: Canada’s new government is eliminating the Goods and Services Tax (GST) for first-time home buyers on new homes up to CAD 1 million and reducing the GST for first-time home buyers on new homes between CAD 1 million and CAD 1.5 million. This tax cut will save Canadians up to CAD 50,000—allowing more young people and families to enter the housing market and make the goal of home ownership a reality for more Canadians. The rebate will generally apply to agreements of purchase and sale entered into on or after 20 March 2025, and before 2031. With Royal Assent of the bill, the Canada Revenue Agency (CRA) will now be able to start processing rebate claims.
- Permanently removing the federal consumer fuel charge from legislation: Canada’s new government cancelled the consumer fuel charge—directly allowing Canadians to save money from the price they pay at the pump. The government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of 1 April 2025. These actions have reduced gasoline prices in most provinces and territories by up to 18¢/L in comparison to 2024-2025, lowering inflation. Bill C-4 will give Canadian consumers and businesses certainty that the consumer carbon price is being permanently removed by eliminating it from federal legislation.
“Bill C-4 delivers meaningful, tangible relief for Canadians. By cutting taxes for the middle class and first-time home buyers, and permanently removing the federal fuel charge, we’re taking concrete steps to make life more affordable,” said The Honourable François-Philippe Champagne, Minister of Finance and National Revenue.
