May 29, 2025•1 Minute

Providing a tax cut for individuals and eliminating the GST for first-time home buyers

On May 27, 2025, the Department of Finance Canada confirmed that it was moving forward with the two measures outlined below, and legislative proposals to this effect were tabled via a Notice of Ways and Means Motion in Parliament:

  • The top marginal tax rate for individuals will decrease from 15% to 14.5%, effective July 1, 2025, and to 14% as of 2026.

  • The Goods and Services Tax (GST) will be eliminated for first-time buyers of new homes up to $1 million in value and will be reduced for first-time buyers of new homes between $1 million and $1.5 million in value. This measure applies to sales contracts concluded after May 26, 2025.

For more information, we invite you to contact your FBL representative and consult the information documents linked below.

Sources:

A tax cut that will benefit the middle class – Canada.ca

GST relief for first-time home buyers on new homes valued up to $1.5 million – Canada.ca

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