The Minister of Finance, Mr. Eric Girard, tabled his 2025-2026 budget plan on March 25, 2025, which plans to introduce a new, simplified and enhanced tax assistance system to stimulate research, innovation and commercialization, to redirect tax assistance to artificial intelligence solutions and to eliminate inefficient or little-used tax expenditures. The new budget brings bold steps to fuel innovation, support families, and drive sustainability. Here’s how it benefits you and businesses across Québec:
- For Individuals: The Child Care Tax Credit remains (for kids under 14), the Family Allowance extends for bereaved parents, and medical and education tax credits are being revised. Some benefits, like the tax shield, are being eliminated.
- For Businesses: A new 20-30% R&D tax credit, increased incentives for AI and tech, and tax breaks for critical mineral projects. Some university research tax credits are ending.
- Taxes & Fees: The insurance tax will match the 9.975% sales tax by 2027, and biodiesel fuel tax refunds will be eliminated in 2025.
- Electric Vehicles (EVs): The Roulez Vert rebate drops to $4,000 before phasing out in 2027. A $125 annual EV fee is coming, and free tolls and ferry access will end.
- Other Changes: Employer-covered transit passes will be taxed, stricter rules for foreign assets over $100K, and the removal of some capital gains tax exemptions.
Québec is simplifying its tax system and focusing on sustainable and innovative growth.
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DOWNLOAD > 2025-2026 QUÉBEC BUDGET SUMMARY