What it is
Bill C-4 does three things at once. It lowers the income tax rate everyone pays on their first chunk of earnings. It scraps the federal carbon charge you paid on gas and home heating. And it removes the 5% GST from brand-new homes that cost less than $1 million. Together, these changes leave more money in your pocket each month.
Who it affects
If you earn an income, you pay less tax. About 22 million people qualify. A single person can save up to $840 a year, and families save more. If you're buying a brand-new home priced under $1 million, you skip the 5% GST. And every Canadian stops paying the federal carbon charge on gas at the pump and natural gas at home.
What changes
The tax rate on the first $57,375 you earn falls from 15% to 14%. The federal consumer carbon charge — which added about 17 cents per litre at the pump — is gone. The 5% GST is no longer charged on new homes priced under $1 million.
Where it stands
Bill C-4 received Royal Assent on March 12, 2026 and is already in effect. You'll see the tax savings show up on your 2026 tax return.
Pros & Concerns
👍 Pros
You see the savings right away, every paycheque. The changes are easy to understand. Skipping GST on a new home can save first-time buyers tens of thousands of dollars up front.
👎 Concerns
Less tax money coming in means a bigger federal deficit unless spending is cut elsewhere. Dropping the carbon charge also drops one of Canada's main tools for cutting greenhouse gas emissions.