Many Canadians will start seeing a bit more money on their paycheques.

The federal government’s middle-class tax cut took effect on July 1.

It lowers the marginal personal income tax rate by one percentage point to 14 per cent.

Those with incomes under $114,750 are expected to benefit most, according to the federal government.

Federal officials have said the tax cut will save a two-income family up to $840 per year.

However, the Parliamentary Budget Officer projects the savings will only be a fraction of that.

It found the average family will save about $280 in the 2026-27 fiscal year.

Average savings range from $50 for a low-income single senior to $750 for high-income couples with children.