Canada: Effect of 2025 election on potential tax changes
Summary of tax promises made by Liberal Party, as well as New Democratic Party and the Bloc Québécois, during the election campaign
The Liberal Party of Canada is set to form the government following the results of the 2025 federal election on April 28, 2025. The Liberal Party’s tax promises made during the election offer insight into potential tax changes for business and individuals that could be announced in the coming months or included in the next federal budget. In particular, the newly elected government indicated before the election that it would not proceed with a proposed tax measure to increase the capital gains inclusion rate.
However, if the new government does not win a majority of seats in this election (which has yet to be determined), they may ultimately need to modify their promises to win the support of another federal party (i.e., New Democratic Party or the Bloc Québécois).
Read an April 2025 report prepared by the KPMG member firm in Canada that summarizes the various tax promises made by the Liberal Party, as well as by New Democratic Party and the Bloc Québécois, during the election campaign.