6 Things You Should Know About Canada's New Federal Budget That Could Save You Money

A tax-free savings account for first-time homebuyers

The federal government has set up a new program with the first-time home buyer in mind and it could be your ticket to saving some cash on your first-ever home. A new tax-free First Home Savings Account is to be established for Canadians to save up to $40,000 to put towards a new home. It'll function like an RRSP or a TFSA and will be a way to store some money for when you're ready to buy a home.

It will be tax-free and tax-deductible so it'll be a perfect way to save for that home you've always been wanting.

Extension of the First-Time Home Buyers Incentive

Along with this new savings account, the government will also be doubling and extending, the First-Time Home Buyers' Tax Credit. As of right now, It will be available to Canadians until March 31, 2025, and will be a way for Canadians to share the costs of borrowing money to buy a home with the government.

Plus, the first-time home buyers' incentive will be increased to $10,000 and would provide up to $1,500 in support (up from $750) for homebuyers when tax time comes around again.

Incentives for getting a new zero-emissions vehicle

Canada has made it a goal to completely end the sale of gas-powered cars by 2035 and to start the process, and they've rolled out a few incentives for the purchase of vehicles that are zero-emission.

The feds will be extending the $5,000 rebates for consumers who purchase an electric vehicle or zero-emission vehicle, and will be introducing around $1.7 billion in further incentives for zero-emission vehicles.

Five big ones back on a purchase is not too shabby!

Tax benefits for workers who need to relocate.

While a tax credit currently does exist if you've had to move for work or school, the new budget has included another, more expanded benefit. Called the Labour Mobility Deduction, it's the way for eligible tradespeople and apprentices to get tax recognition on up to $4,000 of moving and temporary relocation expenses.

So, if 2022 means moving to where the work is for you, you can hopefully get a bit of cash back on that come tax time.

Tax cuts for small businesses

If you own or run a small business, taxes can be a bit confusing or even a pain to pay. According to the government, the new federal budget has made it so that small businesses will be more inclined to grow. Rather than qualifying for the federal corporate tax of 15% when a business has $15 million in taxable capital, this new rules allows a more gradual increase with $50 million being the new threshold for that federal corporate tax rate.

The government says this is a way for businesses to grow and create more jobs for Canadians.

Free dental care for select people

This is a big one! A product of the deal between the NDP and the Liberals, Canada has begun to roll out an affordable dental care program for Canadians. Starting in 2022, those under 12 years old who have family incomes of less than $90,000 will be eligible for free care from a dentist.

This will continue to expand into the next few years with full implementation happening by 2025.