Canada is heading to the polls on Monday, April 28, and one of the biggest issues this year is money. Whether it’s about saving on taxes, affording a home, or preparing for retirement, the 2025 Federal Election could bring major changes to your financial future.
Here’s a simple breakdown of what each major party is promising—and what it could mean for your wallet.
1. Income Taxes
Every major party wants to reduce your taxes, but in different ways:
- Liberals: Cut the bottom tax rate from 15% to 14% for incomes under $57,375—saving you around $400 a year.
- Conservatives: Go further, cutting the same tax bracket to 12.75%, for savings of up to $1,800 for a two-income family.
- Also promise to:
- Raise the tax-free income level for seniors to $34,000
- Expand travel deductions for tradespeople
- Also promise to:
- NDP: No tax at all for people earning under $19,500
- Lower the basic personal amount to $13,500 for top earners
- Double the Canada Disability Benefit to $4,800
- Bring back higher capital gains taxes for amounts over $250,000
- Green Party: Raise the tax-free amount to $40,000, saving people up to $3,644
2. Housing
Housing is a major concern across Canada—and each party has a plan:
- Liberals: Removed GST on new homes under $1 million for first-time buyers
- Conservatives: Remove GST for all buyers of new homes under $1.3 million
- NDP:
- Offer low-interest mortgages to first-time buyers
- Nationwide rent control
- Ban renovictions
- Introduce a Renters’ Bill of Rights tied to federal housing grants
3. Inflation and Cost of Living
Groceries, diapers, and internet bills keep rising. Here’s what’s proposed:
- NDP:
- Cap prices on essential goods like pasta and baby formula
- Remove GST on:
- Grocery store meals
- Diapers, strollers
- Phone, internet, and heating bills
- Increase taxes on grocery chains with high profits
4. Retirement and Seniors
Seniors could see changes to how and when they access retirement income:
- Conservatives:
- Raise the RRSP-to-RRIF conversion age from 71 to 73
- Keep retirement program eligibility at age 65
- Liberals:
- Give a 5% boost to GIS in 2025—up to $652 extra
- Let seniors withdraw less from their RRIFs for this year
- NDP: Promise to raise GIS for low-income seniors (no dollar amount yet)
5. TFSAs and Investments
- Conservatives: Want to allow an extra $5,000 TFSA contribution, but only if it’s invested in Canadian equities
This could get complicated, since many Canadian companies operate abroad or are listed outside Canada.
What This Means for You
The outcome of the Federal Election could make a big difference in how much you pay (or save) in taxes, what housing you can afford, and how you prepare for retirement. This is a chance to vote for policies that align with your financial goals.
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