What to know
- Bill C-4, which passed last week, introduces a middle-class tax cut and a GST break for first-time home buyers.
- First-time buyers can save big on new homes: GST is eliminated on homes up to $1 million and reduced on homes up to $1.5 million, saving them up to $50,000.
- Tax relief for millions of Canadians: income tax rates for the two brackets drops from 15% to 14%, with up to $420 in savings per person, affecting about 22 million people.
- Despite slight declines, the average GTA home prices are still around $1 million, highlighting ongoing affordability challenges even with new federal measures.
Torontonians frustrated with the city’s skyhigh housing prices could save up to $50,000.
Last Thursday, the federal government passed Bill C-4, the Making Life More Affordable for Canadians Act, aimed at making housing more affordable for first-time home buyers and cutting taxes for the middle class.
Prime Minister Mark Carney announced the new legislation X on Wednesday, writing, “We’re saving Canadians up to $50,000 on your first home. Last week, Bill C-4 became law — officially eliminating the GST for first-time home buyers on new homes up to $1 million, and reducing it on new homes between $1 million and $1.5 million.”
What is Bill C-4?
There are three main measures of Bill C-4: a middle-class tax cut, a first-time home buyers’ rebate, and removal of the federal consumer fuel charge.
Canadians who make less than $117,045 annually will see their marginal personal income tax rate drop from 15 per cent to 14 per cent. Nearly 22 million people will receive up to $420 in tax relief per person. This legislation is backdated to July 1, 2025, which means Canadians whose 2025 was not taxed will see some extra money in their tax return this spring.
Ever dreamed of owning a home? Good news, because the government is making it cheaper. First-time home buyers will no longer pay the Goods and Services Tax (GST) on new homes that cost up to $1 million. For homes that cost between $1 million and $1.5 million, the GTS will be reduced.
This move will save Canadians up to $50,000, which the government says will allow “more young people and families to enter the housing market and make the goal of home ownership a reality for more Canadians.”
Those who bought a house in 2025 are also in luck. The GST rebate applies to homes purchased after March 20, 2025, and will expire in 2031.
When Carney was elected in April 2025, he permanently removed the federal consumer fuel charge, also known as the carbon tax. The government says doing so has “reduced gasoline prices in most provinces and territories by up to 18¢/L in comparison to 2024-2025, lowering inflation.”
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Housing frustrations
Although Toronto’s housing prices are more affordable than that of a year ago, the average price of a condo is still over $1 million. According to the Toronto Regional Real Estate Board, the average selling price of a home in the GTA in February was $1,008,968, compared to $1,120,984 in March 2025.
In terms of the national average, housing prices have come down 4.8 per cent in 2026, compared to 2025, as reported by the Canadian Real Estate Association.
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Not all Canadians are welcoming Bill C-4 with open arms. Some social media users feel like $50,000 is not nearly enough to knock off the price of a home. One X user writes, “Saving $50K on a home…that most Canadians can’t qualify for, can’t afford, and can’t even dream about. While half of the Canadians live paycheque to paycheque. Great job @MarkJCarney.”
Other X users are praising Carney’s new bill, with one person writing, “Thank you Minister for the policies, and commitment in making it less burdensome on a large percentage of Canadians.” Another user writes, “That’s amazing! Can we have more social housing built as well? Can we invest in social programs and healthcare?”
