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Tracking Federal Tax Policy Changes: Conservative vs Liberal
As the 2025 election approaches, Canada’s two major parties are rolling out new tax proposals.
This page is maintained by tax expert Kim G C Moody, FCPA, FCA, TEP to provide ongoing, side-by-side comparisons
of federal tax policy announcements from the Conservative and Liberal parties.
Want to stay informed as policies change?
Subscribe here
to receive weekly tax policy updates right in your inbox.
Last updated: March 25, 2025
Tracking Federal Tax Policy Changes: Conservative vs Liberal
As the 2025 election approaches, Canada’s two major parties are rolling out new tax proposals.
This page is maintained by tax expert Kim G C Moody, FCPA, FCA, TEP to provide ongoing, side-by-side comparisons
of federal tax policy announcements from the Conservative and Liberal parties.
Want to stay informed as policies change?
Subscribe here
to receive weekly tax policy updates right in your inbox.
Last updated: March 25, 2025
Tax Policy Comparison #1: Personal Taxation #1
Conservative Party
Date: March 24, 2025
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
2.25% reduction of the current lowest bracket (income from nil to approx. $57K).
Reduces from 15% to 12.75%.
Unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 12.75%.
Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits.
View Policy
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
2.25% reduction of the current lowest bracket (income from nil to approx. $57K).
Reduces from 15% to 12.75%.
Unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 12.75%.
Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits.
View Policy
Liberal Party
Date: March 23, 2025
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
1.0% reduction of the current lowest bracket (income from nil to approx. $57K).
Reduces from 15% to 14%.
Unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 14.0%.
Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits.
View Policy
Summary:
Reduce the rate of the Bottom Personal Taxation Bracket.
Description & Comment:
1.0% reduction of the current lowest bracket (income from nil to approx. $57K).
Reduces from 15% to 14%.
Unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 14.0%.
Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits.
View Policy
Tax Policy Comparison #2: Personal Taxation #2
Conservative Party
Date: January 16, 2025 and earlier
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget.
View Policy
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget.
View Policy
Liberal Party
Date: March 21, 2025
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
New PM Mark Carney announces that he would "cancel" the capital gains proposals.
View Policy
Summary:
Eliminate the capital gains proposals from the 4/16/24 Budget.
Description & Comment:
New PM Mark Carney announces that he would "cancel" the capital gains proposals.
View Policy
Tax Policy Comparison #3: Excise & Other Tax #1
Conservative Party
Date: March 25, 2025
Summary:
Reduce the GST on new housing.
Description & Comment:
Original pledge was to eliminate GST on new housing up to $1M. This has now increased to $1.3M.
View Policy
Summary:
Reduce the GST on new housing.
Description & Comment:
Original pledge was to eliminate GST on new housing up to $1M. This has now increased to $1.3M.
View Policy
Liberal Party
Date: March 20, 2025
Summary:
Reduce the GST on new housing.
Description & Comment:
Liberals announce GST on new housing will be eliminated on the first $1M of cost.
View Policy
Summary:
Reduce the GST on new housing.
Description & Comment:
Liberals announce GST on new housing will be eliminated on the first $1M of cost.
View Policy
Tax Policy Comparison #4: Excise & Other Tax #2
Conservative Party
Date: Longstanding policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
The repeal of the consumer carbon tax has long been a Conservative platform (“Axe the Tax”).
View Policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
The repeal of the consumer carbon tax has long been a Conservative platform (“Axe the Tax”).
View Policy
Liberal Party
Date: March 14 & 25, 2025
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
Carney signed a directive to reduce the consumer carbon tax to nil. Full repeal not legislated. Future green initiatives expected.
View Policy
Summary:
Elimination of the consumer carbon tax.
Description & Comment:
Carney signed a directive to reduce the consumer carbon tax to nil. Full repeal not legislated. Future green initiatives expected.
View Policy
Tax Policy Comparison #5: Excise & Other Tax #3
Conservative Party
Date: March 17, 2025
Summary:
Elimination of the industrial carbon tax.
Description & Comment:
Plan to repeal carbon tax for large emitters, leaving it to provinces to manage emissions.
View Policy
Summary:
Elimination of the industrial carbon tax.
Description & Comment:
Plan to repeal carbon tax for large emitters, leaving it to provinces to manage emissions.
View Policy
Liberal Party
Date: N/A
Summary:
Expansion of the industrial carbon tax.
Description & Comment:
Plan to expand carbon tax and create incentives for green industrial investment.
View Policy
Summary:
Expansion of the industrial carbon tax.
Description & Comment:
Plan to expand carbon tax and create incentives for green industrial investment.
View Policy
| Tax Policy Comparison: PERSONAL TAXATION #1 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Reduce the rate of the Bottom Personal Taxation Bracket | Reduce the rate of the Bottom Personal Taxation Bracket |
| DATE | 24-Mar-25 | 23-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT |
2.25% reduction of the current lowest bracket (income from nil to approx. $57K). Reduces from 15% to 12.75%. This means, unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 12.75%. Estimated cost to the fisc = $12 billion before recoveries from reduced personal tax credits. |
1.0% reduction of the current lowest bracket (income from nil to approx. $57K). Reduces from 15% to 14%. This means, unless amendments are made to the Income Tax Act, personal tax credit amounts (except certain donations) will be at 14.0%. Estimated cost to the fisc = $6 billion before recoveries from reduced personal tax credits. |
| Tax Policy Comparison: PERSONAL TAXATION #2 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Eliminate the capital gains proposals from the 4/16/24 Budget | Eliminate the capital gains proposals from the 4/16/24 Budget |
| DATE | 16-Jan-25 and earlier | 21-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | The Conservatives have long been on record that they would not support the capital gains proposals from the April 16, 2024 budget. | New PM Mark Carney announces that he would "cancel" the capital gains proposals. |
| Tax Policy Comparison: EXCISE & OTHER TAX #1 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Reduce the GST on new housing | Reduce the GST on new housing |
| DATE | 25-Mar-25 | 20-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | Original pledge was to eliminate GST on new housing up to $1M. This has now increased to $1.3M. | Liberals announce GST on new housing will be eliminated on the first $1M of cost. |
| Tax Policy Comparison: EXCISE & OTHER TAX #2 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Elimination of the consumer carbon tax | Elimination of the consumer carbon tax |
| DATE | Longstanding policy | 14-Mar-25 & 25-Mar-25 |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | The repeal of the consumer carbon tax has long been a Conservative platform (“Axe the Tax”). | Carney reduced the rate to nil via directive. Full repeal not yet legislated. Future green initiatives expected. |
| Tax Policy Comparison: EXCISE & OTHER TAX #3 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Elimination of the industrial carbon tax | Expansion of the industrial carbon tax |
| DATE | 17-Mar-25 | N/A |
| URL | View Policy | View Policy |
| DESCRIPTION & COMMENT | Plan to repeal carbon tax for large emitters, leaving it to provinces to manage emissions. | Plan to expand carbon tax and create incentives for green industrial investment. |