Quebecers will see their taxes increase for the year 2025 due to significant tax increases planned by the provincial and federal governments.
At least that’s what the Canadian Taxpayers Federation (CCF) revealed Thursday in its annual report on New Year’s tax changes.
The main tax increases planned for 2025 could cause many headaches for Quebecers.
“Tax increases will give Quebecers a headache in the new year,” declared the Quebec director for the FCC, Nicolas Gagnon, in a press release.
These cost increases could be explained in particular by the “drastic” increases in taxes on payroll planned by the Legault government and those on registration by the mayors of Montreal and Quebec, we can read in the report.
In addition, Quebecers will have to deal with tax increases planned by the Trudeau government, notably on capital gains, alcohol taxes, a tax on digital services and a tax on online streaming.
Payroll
According to the report, the provincial government plans to increase mandatory contributions to the Quebec Pension Plan (QPP) and Employment Insurance (EI) in 2025.
These increases could cost up to an additional $218 per worker.
For a worker with an income of $78,000 or more, social charges, including QPP and EI, could cost approximately $4,540 in 2025.
As for the employer, he should also assume an equivalent contribution.
Registration fees
From 1is January, an increase in registration fees could be expected in Greater Montreal and Quebec City.
According to the FCC report, registration fees should increase from $59 to $150 per vehicle in Montreal. This equates to an increase of 154%, or $300 per year for a family with two cars.
As for Quebec City, registration fees could increase by 200%, going from $30 to $90 per vehicle, or $180 annually for a family with two cars.
“The highest taxed taxpayers in North America will not get any relief this year,” said Nicolas Gagnon. If Legault really wants to help taxpayers, he must control his government’s spending and keep all the promises of tax cuts made in 2022. This should be his resolution for the new year.
