Quebec Budget Boosts Retirement Savings

Geoff Currier

So far in provincial budget season 2026, every provincial government which has tabled a budget has announced a significant deficit. Quebec Finance Minister Eric Girard brought down his government’s budget on March 18th and contained in that budget is a $6.3 billion deficit. For context, it is smaller than last year’s deficit and next year’s is forecast to be $4 billion. The Quebec government is committed to a balanced budget by 2029-30. The budget document itself says the government is "resolutely pursuing” a path to balance. 

Individual Tax Changes: There’s some good news for Quebec taxpayers in that no new taxes were introduced. Instead, Revenu Quebec is going to file automatic returns for certain low-income individuals. It’s believed that between 3% and 5% of residents are missing out on benefits to which they are entitled because they don’t file a return. This measure is designed to help those individuals access benefits such as the Work Premium and the Solidarity Tax Credit.

Quebec’s Voluntary Retirement Savings Plan (VRSP) has been modified. The budget establishes a new minimum contribution rate of 2% of salary. As well the new measures require an employer to contribute at least 2% of the employee’s salary.

Corporate Tax Changes: The budget introduced several corporate tax changes. The refundable tax credit for print media has been expanded. The credit will now be applied to all news agencies which broadcast on radio and television as well as print. The annual eligible wage limit per employee has been raised from $75,000 to $85,000. The refundable tax credit for the digital transformation from print media has been extended until the end of 2028 but will be gradually phased out down to 20% in 2027 and 10% in 2028.

The length and episode requirements for documentaries and audiovisual programs have been removed. As well, financial assistance from the Indigenous Screen Office will be considered an excluded assistance, which means it will no longer reduce the expense eligible for the tax credit. 

The criteria for E-business integrating Artificial Intelligence, known as TCEBAI, has been expanded. Specialized AI consulting services and some preparatory work (conducted up to 12 months before a project begins) are now eligible activities. The rules regarding carrying forward unused non-refundable tax credit balances have also been relaxed. Support and maintenance revenues for companies performing intercompany outsourcing have been clarified.

Due to certain industries being particularly hard hit by U.S. tariffs, there will be a two-year holiday from the Health Services Fund (HSF) This holiday is being applied for 2026 and 2027 for businesses in agriculture, fishing and forestry.

The cost of greenhouses acquired on or after November 4, 2025 may be fully written off. This harmonizes Quebec's tax legislation with the federal measure. 

The requirement to send information returns via registered mail has been removed as has the rule giving tax authorities a strict 120-day limit to request additional information. This measure is being put in place to accommodate the increase in returns and to pave the way for electronic transmission.

The Bottom Line: The budget statement says that real GDP growth is expected to reach 1.1% in 2026 and 1.4% in 2027. The budget does make mention of current gas prices but believes that this situation is temporary. It provides a dose of realism in saying that it should be expected that tariffs which are currently in place will likely become permanent.

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