2026 Quebec Budget Highlights
On March 18, 2026, Quebec’s Finance Minister, Eric Girard, released the province’s 2026-2027 budget. We have highlighted selected tax measures that affect individuals and businesses in Quebec.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. The personal tax brackets continue to be indexed at an inflation rate of 2.05% for 2026.
| 2025 Taxable Income | 2026 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $53,255 | $0 to $54,345 | 14.00% |
| $53,255 to $106,495 | $54,345 to $108,680 | 19.00% |
| $106,495 to $129,590 | $108,680 to $132,245 | 24.00% |
| Over $129,590 | Over $132,245 | 25.75% |
Top Combined Quebec and Federal Rates – 2026
| Other/Interest/ Salary/Pension | Capital Gains | Eligible Canadian Dividends | Non-eligible Canadian Dividends |
|---|---|---|---|
| 53.31% | 26.65% | 40.11% | 48.70% |
Top rates apply to taxable income over $258,482 based on known federal and Quebec rates as of March 18, 2026.
Personal Income Tax Measures
- Revenue Quebec will automatically file tax returns for certain taxpayers for the 2026 taxation year in order to ensure they receive the tax assistance they are entitled to.
- The budget will continue to cap the Quebec school tax increase at 3%.
Additional Tax Measures
- Adjustments to certain tax disclosure mechanisms, including removing the reference to the method of transmission and proof of receipt of information returns. In addition, removing the presumption regarding the 120-day period granted to tax authorities to request additional information concerting information returns.
- Harmonization of Quebec tax legislation with the federal government to allow for immediate expensing of greenhouse buildings to support the productivity and competitiveness of the bio-food sector.
BUSINESSES
The budget did not propose any changes to Quebec corporate income tax rates or the small business deduction calculation.
| Income Type | Quebec Rate | Federal Rate | Combined Rates Calendar 2026 |
|---|---|---|---|
| General corporate income | 11.50% | 15.00% | 26.50% |
| Small business income – federal and Quebec income eligible for the small business deduction | 3.20% | 9.00% | 12.20% |
| Small business income – only federal income eligible for the small business deduction |
11.50% | 9.00% |
20.50% |
| CCPC* investment income | 11.50% | 38.67% | 50.17% |
| Non-CCPC investment income | 11.50% | 15.00% | 26.50% |
| Manufacturing and processing income | 11.50% | 15.00% | 26.50% |
*Canadian Controlled Private Corporation
Based on known federal and Quebec rates at March 18, 2026
Business Income Tax Measures
- The budget will implement amendments to the refundable tax credit to support print media. This includes expanding the eligibility criteria for the refundable tax credit, increasing the annual limit appliable to qualified wages for eligible employees to $85,000 and removing the carrying out of information technology activities for the purposes of the employee certificate.
- Extending the refundable tax credit for the digital transformation of the print media business and phase-out over a three-year period. The tax credit rate which is currently 35% will be reduced to 20% in 2027 and 10% in 2028.
- Amendments to the refundable tax credit for film or television productions in Quebec, including no longer having a requirement to meet a minimum number of minutes of content and no longer reducing the credit for productions that receive financial assistance form the Indigenous Screen Office.
- The budget includes various adjustments to the refundable tax credit for the development of e-business integrating artificial intelligence functionalities (TCEB). The amendments will apply to taxation years beginning after December 31, 2025.
Refer to the 2026 Quebec Budget here for further details.
This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable, but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member of the Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member of the Canadian Investor Protection Fund.
