The 2025 federal election kicked off Sunday and both the Liberal and Conservative parties promised tax cuts on the first day of campaigning. 

Liberal Party of Canada Leader Mark Carney announced a middle-class tax cut Sunday (March 23) during his election announcement in Ottawa. He said the Liberals' promise of a tax cut could help families save up to $825 a year for two-income families by reducing the marginal tax rate on the lowest tax bracket by 1 percentage point.

The Liberal Party says more than 22 million Canadians will benefit from the tax cut, with middle- and low-income families benefiting the most. 

鈥淢y new government will focus on helping hard-working Canadians keep more of their paychecks 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 鈥� and this tax cut will help them do that.鈥�

Meanwhile, leader Pierre Poilievre launched the Conservative Party of Canada's campaign with a promise of cutting income tax by 15 per cent and dropping the tax rate on the lowest income tax bracket to 12.75 per cent from 15 per cent.

The Conservatives say that cut could save up to $900 for the average Canadian worker earning $57,000 a year. For two-income families, it could be a savings of up to $1,800 a year.

鈥淓verywhere I go, Canadians tell me the same thing鈥攍ife has never been more expensive. You鈥檙e working harder, but your work doesn鈥檛 pay like it used to, and it feels like you鈥檙e falling further behind,鈥� Poilievre said. 鈥淐anadians deserve to bring home powerful paycheques for their families, and my 15 per cent tax cut will do exactly that.鈥� 

Sunday marked the first day of campaigning following Carney's meeting with Gov.-Gen. Mary Simon, asking her to dissolve parliament.