The 2025 Fall Economic Update does not introduce any corporate or personal tax rate changes for the province.
Quebec’s Finance Minister presented the 2025 Fall Economic Update on 25 November 2025, outlining proposed tax measures affecting both businesses and individuals.
The 2025 Fall Economic Update does not introduce any corporate or personal tax rate changes. Still, it aligns with federal 2025 tax measures and reduces contribution rates to the Quebec Pension Plan (QPP) and Quebec Parental Insurance Plan (QPIP) for all workers and employers.
The proposed key tax measures are:
Cancellation of the increase in the capital gains inclusion rate
The Quebec government is cancelling the increase to the capital gains inclusion rate, following the federal government’s decision.
Temporary HSF contribution holiday for select sectors
The Update introduces a two-year temporary payroll tax relief for the Health Services Fund (HSF), reducing the contribution rate to 0% in 2026 and 2027 for eligible employers in the agriculture, forestry, and fisheries sectors.
Reduction to base contribution rates to the QPP and QPIP
The Quebec government plans to lower the 2026 QPP base contribution rate to 10.6%, split equally between employers and employees (5.3% each), with self-employed individuals paying the complete 10.6%. Additionally, the Update announces a 13% overall reduction in QPIP premium rates, effective 1 January 2026.
Gaspesie tax credit extended to 2030 with expanded marine coverage
The fall 2025 update also includes more than CAD 400 million over five years to promote economic development in regions facing several challenges, particularly those related to tariffs. Of this amount, more than CAD 290 million will be invested to support the agriculture, forestry, and fishing sectors, notably by providing businesses with a CAD 255-million temporary payroll tax holiday. In addition, the government is allocating CAD 65 million to extend the tax credit for Gaspésie and certain maritime regions of Québec.
Revised mineral resource tax credit for far north mining
The refundable tax credit for specific mineral and resource activities will be revised so that only 50% of eligible expenses for mining operations in Quebec’s Far North count toward the cumulative eligible expense limit. This change applies to taxation or fiscal years starting after 25 March 2025.
