Canadians are set to vote in a spring federal election on April 28 and, in addition to the threat of U.S. tariffs, taxes are top of mind for many voters amid a bigger cost of living strain.
According to a recent Ipsos poll conducted exclusively for Global News, nine per cent of respondents said taxes ranked as the top election issue for them.
That’s in addition to 23 per cent who said affordability and the cost of living were the top issue for them. Another 15 per cent said relations with other countries, including concerns over trade, war, and global conflict, are the top issues. Healthcare ranked as the third most important issue for Canadians, with 14 per cent.
Here’s what Canada’s federal political parties are promising for your taxes.
Liberal Leader Mark Carney kicked off his party’s 2025 election campaign Sunday by announcing what he called a middle-class tax cut.
The Liberal plan will see the marginal tax rate on the lowest tax bracket cut by one percentage point.
Income in Canada is taxed using a tax bracket system, which currently has five federal tax brackets. According to the Canada Revenue Agency, your “taxable income” is your income after various deductions, credits, and exemptions have been applied.
Income is taxed at increasing rates, which means people who earn less pay less, and people who earn more pay higher rates of tax on the income that falls into higher tax brackets.
- Canadians in the lowest tax bracket pay 15 per cent income tax on the portion of taxable income that is $57,375 or less
- In the second tax bracket, Canadians are taxed 20.5 per cent on the portion of taxable income between $57,375 and $114,750
- In the third tax bracket, taxpayers are taxed at 26 per cent on the portion of their taxable income between $114,750 and $177,882
- The next tax bracket has a tax of 29 per cent on taxable income between $177,882 and $253,414.
- The highest tax bracket of 33 per cent is for the portion of income over $253,414 a year
Carney said this would save two-income families up to $825 a year and directly benefit 22 million Canadians, mostly middle and low-income people.
The party said 82 per cent of those who will benefit, including five million people who are parents, earn less than $80,000 a year.
This could save Canadians up to $412 a year, the party said.
“My new government will focus on helping hard-working Canadians keep more of their paycheques to spend where it matters most: on homes, groceries, and their families. Every Canadian should be able to afford necessities, feel secure, and get ahead financially — and this tax cut will help them do that,” Carney said on Sunday.
The party said this move would build on steps Carney has already taken as prime minister, such as cancelling the consumer carbon price, promising to eliminate the GST on all homes up to $1 million for first-time home buyers and making it easier for workers to access Employment Insurance.
Carney’s statement did not say how his government will pay for the tax cuts.
Conservative Leader Pierre Poilievre on Monday unveiled his tax cut plan, vowing to slash income tax by 15 per cent.
Poilievre said his government would slash the tax rate on the lowest income tax bracket from 15 per cent to 12.75 per cent.
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Poilievre’s plan covers Canadians in the lowest tax bracket, who currently pay 15 per cent income tax on the portion of taxable income that is $57,375 or less.
“Everywhere I go, Canadians tell me the same thing — life has never been more expensive. You’re working harder, but your work doesn’t pay like it used to, and it feels like you’re falling further behind,” Poilievre said Monday.
Poilievre said his tax plan will save two-income families $1,800 a year and a Canadian earning $57,000 a year would see savings of $900.
Poilievre said his plan “includes taking the GST off new homes, axing the sales tax on new homes to build to lower the cost of buying one and to stimulate more housing construction.”
During a campaign stop in Brampton, Ont., Poilievre was asked how he plans to pay for the tax cuts.
Poilievre said he would cut bureaucracy and limit spending.
“We will be cutting bureaucracy, cutting consultants, cutting back on handouts to insiders, and we will cut back on foreign aid to bring our money home to this country,” he said.
He added the Tories would bring in a “dollar-for-dollar law that will require ministers find $1 of new savings for every dollar of new spending that will drive down the cost and drive up the efficiency so that we can get value for money.”
The NDP plan is focused on cutting taxes on essential items such as groceries.
The party said in its tax plan that it will reduce GST on grocery store items, diapers, children’s car seats, clothing for children, all telecom, internet and cell phone charges, as well as on home heating.
“New Democrats will pay for its Tax-Free Essentials commitment with an excess profit tax on large corporations that gouge Canadians,” the party says on its website.
The party clarified that its excess profit tax would only apply to very large corporations such as Rogers, Shell, or Loblaws, and would bring in $14 billion in additional annual revenue.
The party cited the parliamentary budget officer for its estimate.
NDP Leader Jagmeet Singh on Monday criticized both Carney and Poilievre’s tax cut plans.
“His (Carney’s) income tax proposal is so broad that it also gives a break to the top tax bracket people earning over $253,414 a year,” Singh said in a statement.
Speaking to reporters at a campaign stop in Montreal Monday, Singh said, “Yes, we need to give a tax break to the middle class, but let’s give it just to the middle class. Not to billionaires. Their (Carney and Poilievre’s) plan doesn’t distinguish.”
The Bloc Quebecois has not yet released its tax plans or proposals.
However, Bloc Leader Yves-Francois Blanchet addressed the tax cuts being promised by both the Liberals and the Conservatives.
Blanchet was asked if the Bloc will compete with the Liberal and Conservative plans to cut taxes.
“I don’t have to compete with that, but let me say something. How the hell do you intend to do that?” he asked.
Blanchet said Canada’s precarious position in the trade war launched by the U.S. will mean the government will have to spend money on supporting enterprises, businesses and workers who lose their jobs.
“If you do only cut and cut and cut, you will have to tell us where you will make those cuts. So, it seems like instead of Mr. Carney convincing Mr. Poilievre to have a program, Mr. Poilievre has convinced Mr. Carney to have only slogans.”
The Green Party’s “Fair Taxation” plan on its website vows a tax on the “ultra-wealthy” to give relief to working families.
The party said it would particularly zero in on big tech companies and big banks, who they said exploit “loopholes” to avoid paying taxes.
The Greens said they will release a detailed taxation plan to reflect the current state of the Canadian economy.
“We have a simple goal: taxes that work for people, not profiteers. In the coming weeks, we’ll announce our new tax plan. It will put thousands of dollars back into working people’s pockets. This will be the biggest change to income tax in generations,” the party says on its website.
