Canada’s federal election 2025: Comparing the major parties’ tax proposals

Editor’s note: This article was updated on April 23 to reflect the latest announcements from the major parties.

Canada’s federal election is set for April 28. With the uncertainty facing Canada’s economy due to U.S. tariff tensions and other shifts in the financial landscape, the major parties and their leaders are trying to sell their vision to voters on how their government would address these challenges.

Here is a summary of the campaign promises made so far by the major parties and their leaders. This article will be updated as more information becomes available.

Liberal Party of Canada

Newly elected Liberal Leader Mark Carney and his party proposed measures that focus on providing relief for Canadians and strengthening the economy by reducing housing costs and taxes. This builds on Carney’s recent actions as prime minister when he cancelled both the increase to the capital gains inclusion rate and the consumer portion of the federal carbon tax.

Carney also imposed additional reciprocal tariffs on various U.S. imports in an effort to protect Canada’s economy during ongoing trade uncertainty, and pledged to focus on strengthening inter-provincial trade.

Other Liberal Party pledges include:

• Delivering a middle-class tax cut by reducing the lowest income tax bracket from 15 per cent to 14 per cent effective July 1, 2025, which the party said would save a two-income household up to $825 a year.

• Eliminating GST for first-time homebuyers on the purchase of new homes made after March 20, 2025 and priced at or under $1 million, and then linearly phased out when the price meets $1.5 million. This was proposed with the intent of helping Canadians with upfront costs of purchasing a new home.

• Introducing an allowance for multi-unit rental building owners to qualify for the accelerated capital cost allowance to help offset other income, effective for the 2025 taxation year.

• Reducing the minimum withdrawal from a Registered Retirement Income Fund (RRIF) by 25 per cent.

• Increasing the Guaranteed Income Supplement (GIS) by 5 per cent from July 1, 2025 to June 30, 2026.

• For skilled trade workers working away from home, increasing the $4,000 limit on travel-related deductions and reducing minimum required travel from 150 kilometres to 120 km.

• Reintroducing a 1970s tax incentive to encourage building homes.

• Introducing a capital gains deferral to private owners of existing residential or non-residential buildings if they sell to a non-profit operator, land trust or non-profit acquisition fund—under the condition that the seller reinvests the proceeds into new purpose-built rental housing, effective July 1, 2025 to June 30, 2035.

• Building off the measures announced by the Liberal government in the 2024 fall economic statement, including:

  • Increasing the expenditure limit for the scientific research and experimental development (SR&ED) investment tax credit from $4.5 million to $6 million, effective July 1, 2025.
  • Implementing a patent box regime to reduce the corporate income tax rate by half for both large corporations and small businesses. This new regime would be applied to the profits generated from new research and development that was developed and patented in Canada, effective July 1, 2025.

The party also promised to expand Canada’s energy sector by attracting, expanding and de-risking investment in critical mineral exploration and extraction with additional investments in and expansion of existing tax credits.

The Liberal Party pledged to incentivize projects of national interest by keeping the federal government’s current suite of investment tax credits for clean energy, finalizing the tax credits under development and reinforcing the Canada Growth Fund. The party also proposed expanding the current flow-through share program to include companies that operate in the artificial intelligence, quantum computing, biotechnology and manufacturing industries; these changes would take effect July 1, 2025.

Conservative Party of Canada

Led by Pierre Poilievre, the Conservative Party’s proposed plan includes providing various tax relief measures to both individuals and businesses with the intention of jumpstarting Canada’s economy. The party also promised a comprehensive review of international tax measures to target any current tax loopholes.

Led by Pierre Poilievre, the Conservative Party’s proposed plan includes providing various tax relief measures to both individuals and businesses with the intention of jumpstarting Canada’s economy. The party also promised a comprehensive review of international tax measures to target any current tax loopholes.

Other Conservative Party pledges include:

• Gradually reducing the lowest income tax bracket from 15 per cent to 12.75 per cent at a rate of 0.75 per cent over three years starting in 2026. Once the rate of 12.75 per cent is implemented in 2028, the party said the measure would provide savings of approximately $900 annually to individual taxpayers.

• Keeping the capital gains inclusion rate at the current rate of 50 per cent and introducing a measure whereby any person or business that sells an asset won’t pay capital gains tax should they reinvest the proceeds in Canada. These gains would be taxed later if investors cash out or move the money out of Canada. The party promised this tax break would be available on any reinvestments from July 1, 2025, to Dec. 31, 2026.
• Eliminating the current underused housing tax (UHT) and its associated administration expenses, effective May 1, 2025.

• Eliminating both the consumer and industrial carbon tax, including the federal industrial carbon tax backstop, and expanding eligibility on the Clean Technology and Clean Manufacturing Investment Tax Credits (ITCs).

• Eliminating GST on new homes priced at or under $1.3 million effective May 1, 2025—which the party said would save homebuyers approximately $65,000—and incentivizing municipalities to cut building taxes through reimbursements.

• Eliminating GST on what it determines are Canadian-made cars priced at $50,000, which the Conservative Party said would save approximately $2,500, and encouraging provinces to follow suit.

• Increasing the tax-free savings account (TFSA) contribution limit by $5,000 each year if invested in certain Canadian securities.

• Increasing the basic personal amount for working seniors by $10,000 (indexed to inflation), delaying the time by which they must withdraw from their registered retirement savings plans (RRSPs) and protecting GIS, Old Age Security (OAS) and Canada Pension Plan (CPP) payments by keeping the retirement age at 65, beginning Jan. 1, 2027.
• Increasing the age at which seniors must convert RRSPs to registered retirement income funds (RRIFs) from age 71 to age 73.

• Changing the current Canadian caregiver credit into a refundable tax credit effective April 1, 2025, and indexing to inflation.

• For skilled trade workers working away from home, removing the $4,000 limit on travel related deductions and 50 per cent limit on the deduction of meals so that all food costs, transportation and accommodation will be able to be deducted.

• Limiting tax deductions for executive luxury jets and travel.

• Eliminating annual tax increases on alcohol.

The Conservative Party also proposed creating a “Bring-It-Home” task force that would focus on international tax rules to close any loopholes that allow for offshore tax havens by:

• Refocusing the Canada Revenue Agency’s audits from small businesses and charities to offshore tax havens.
• Targeting large multinational corporations by expanding the offshore tax informant program to provide whistleblowers up to 20 per cent of recovered funds and creating a registry of those companies that are deemed to not be paying their fair share in taxes.

The party also pledged to combat U.S. tariffs by:

• Launching a targeted, temporary loan program for businesses directly affected by U.S. measures.
• Imposing reciprocal tariffs.
• Accelerating renegotiations of the Canada-United States-Mexico Agreement (CUSMA).

New Democratic Party (NDP)

The NDP, led by Jagmeet Singh, proposed providing various tax credits and relief for individuals while increasing taxes paid by large corporations and high-income earning individuals.

Other pledges from the party include:

• Increasing the basic personal allowance to $19,500 if earning less than $177,880 annually—which would be phased out until $235,630—and reducing the basic personal amount to $13,500.
• Implementing an annual tax on the net worth of households based on all taxable assets that are included in all asset categories, effective April 1, 2025. The proposed tax would be 1 per cent on household net worth ranging from $10 million to $50 million, 2 per cent on household net worth over $50 million to $100 million and 3 per cent on household net worth over $100 million.

• Eliminating the consumer carbon tax but keeping the industrial carbon tax.
• Introducing a minimum tax rate of 15 per cent on a corporation’s accounting profits, effective Jan. 1, 2025. A corporation would also be required to pay an additional tax if, in any given year, its tax payable is lower than 15 per cent of its net income.
• Introducing a 2 per cent surtax on corporations with taxable income exceeding $500 million, effective Jan. 1, 2025.
• Introducing the removal of tax exemptions for real estate investment trusts (REITs) and subjecting them to the same tax rules as corporations, effective April 1, 2025.

• Increasing the capital gains inclusion rate to 67 per cent for corporations and individuals with over $250,000 of capital gains, effective July 1, 2025. The party said this would allow for increased taxation on capital gains along with the improved collection of taxes by the federal government.

• Eliminating GST on what it determines are Canadian-made vehicles and on essentials such as grocery store meals, cell phones, internet plans and heating bills with the intention of improving the cost of living for Canadians.
• Resuming the incentive for zero-emission vehicles (ZEVs), with the exclusion of Tesla brand vehicles. Additionally, ZEVs made or assembled in Canada will receive double the incentive.
• Doubling the current Canada Disability Benefit from $2,400 per year to $4,800 per year—effective June 1, 2025—and increasing the GIS for seniors effective April 1, 2025.

• Introducing emergency income support which could include an increase to the GST credit, the Canada Child Benefit and the GIS.

The party also promised to increase funding for the Canada Revenue Agency (CRA) by $200 million annually to improve tax compliance and enforcement and close offshore tax loopholes by:

• Ending tax agreements with known havens like Bermuda.

• Requiring corporations to prove a genuine business reason for offshore accounts.

• Implementing public country-by-country financial reporting to prevent multinational corporations from hiding profits.

• Launching a review of the tax code to close loopholes that allow large corporations to avoid paying what they are deemed to owe.

Green Party of Canada

The Green Party of Canada, co-led by Elizabeth May and Johnathan Pedneault, put forth a platform that includes measures aimed at updating the tax system and providing support for individuals.

Other party pledges include:

• Increasing the basic personal amount credit to $40,000 from $15,705.

• Eliminating the tax advantages for Real Estate Investment Trusts (REITs).

• Closing tax loopholes and complex tax schemes utilized by large corporations, particularly technology companies and banks.

• Implementing an annual wealth tax, effective July 1, 2025, of 1 per cent on household net worth over $10 million and up to $50 million, 2 per cent on household net worth over $50 million and up to $100 million and 3 per cent% on household net worth over $100 million.

• Introducing a financial transaction tax on all financial transactions in Canada equal to 0.2 per cent of transaction value, effective July 1, 2025.

• Introducing an exit tax of 35 per cent on all household net worths over $10 million upon renouncing Canadian tax residency, effective July 1, 2025.

• Eliminating the deductibility of internet advertising expenses paid by Canadian resident businesses to foreign-owned websites and other foreign-owned digital media.

• Expanding eligibility for the Disability Tax Credit and Canada Disability Benefit.

Bloc Québecois

Led by Yves-François Blanchet, the Bloc Québecois are unlikely to win a majority or minority government—so the party positioned its platform in such a way that it could be considered for a coalition or a supply-and-confidence agreement should the election result in a minority government.

The party’s pledges include:

• Opposing the cancellation of the Digital Sales Tax.

• Opposing tax avoidance and demanding that the income of Canadian companies recorded in tax havens not be exempt from tax when repatriated to Canada.

• Reiterating support for a minimum tax for multinationals in line with the proposals by the Organisation for Economic Co-operation and Development (OECD).

• Reintroducing a limited-time tax credit for the purchase or lease of a new or used electric vehicle.

• Requesting the federal government lower the excise tax on alcohol made in Quebec.

• Amending the luxury tax to exclude Quebec aerospace.

• Increasing old-age security payments for those aged 65 to 74 by 10 per cent and proposing tax incentives for seniors who choose to remain in the workforce.

• Proposing a tax on what it deems constitute excessive profits from oil and gas companies.

• Proposing a tax credit for recent graduates and newcomers who choose to settle in what the party considers non-city regions.

• Limiting the tax credits available for social media advertising.

People’s Party of Canada (PPC)

The People’s Party of Canada (PPC), led by Maxime Bernier, pledged to overhaul the tax system by:

• Reducing personal income taxes.

• Gradually reducing the corporate income tax rate from 15 per cent to 10 per cent over the course of one mandate.

• Gradually abolishing the personal capital gains tax by decreasing the inclusion rate from the current 50 per cent down to zero.

The party also proposed eliminating targeted tax measures that it considers to be inefficient and serve no compelling public policy purpose.

The takeaway

Each platform from the major parties includes measures aimed at addressing the economic challenges faced by Canadians. It is incumbent on each voter to consider these campaign promises and their potential effects on the country’s economy for themselves.

The Liberal Party’s platform builds on Carney’s recent announcements as prime minister by focusing on providing tax relief, supporting homeownership and aiding low-income seniors.

Despite being on opposite sides of the political spectrum, the Conservative Party and the NDP propose similar measures such as reducing taxes for seniors and low-income earners, tackling offshore investments and offering GST and carbon tax cuts. However, the capital gains inclusion rate is one notable area where these two parties differ.

While each party proposes its own approach to addressing challenges, the theme of protecting Canada is consistent throughout their respective platforms.