New Year’s tax reduction strengthens seniors’ financial security
Canadians are ringing in the new year with another tax reduction from the federal government — they can now earn more before paying any federal income tax. It’s another important step forward for the middle class and those working hard to join it, and for seniors’ financial security.
When the Liberal government’s increases to the Basic Personal Amount are fully implemented in 2023, 4.3 million seniors will benefit, including 465,000 whose federal income tax will be reduced to zero. Every year, singles will save close to $300 and couples will save nearly $600.
These savings will help seniors with everyday expenses, like groceries, hydro and deliveries.
It’s part of the Liberal government delivering on their plan to make life more affordable for seniors.
That work started in 2016, when the first act of our new government was to pass the Middle Class Tax Cut to reduce personal income taxes. This saved affected Canadians an average of $330 a year for singles and $540 a year for couples.
Seniors depend on strong public pensions and our government is committed to improving them. We reversed the previous Conservative government’s increase to the age of eligibility for Old Age Security and the Guaranteed Income Supplement, restoring it to 65 years from 67 years. That put thousands of dollars back into the pockets of new seniors.
To help low-income seniors, we increased the GIS by $947. And to