Groceries, electricity, taxes, transportation costs: sorry, life will cost even more in 2025

We might as well face the facts right away: the cost of living will continue its inevitable rise in 2025. Here is an overview of the price and rate increases that await us firmly in the coming months.

$800 more for groceries

Food will continue to be hit hard by inflation, while the cost of the grocery basket is expected to rise another 3% to 5% in 2025, according to experts. This increase will hurt all the more as the price of food has exploded by 27% since 2020.

The largest increases will affect meat and vegetables. The price of these foods will jump by 3 to 6% over the coming months.

For a family of four, made up of two adults and two children, expenses related to the purchase of food could total $16,833, or $800 more than last year.

These forecasts come from Annual Food Price Report. Expected every year, the document is the result of the collaboration of Dalhousie, Guelph, Saskatchewan and British Columbia universities.

Bigger Hydro bills

Like last year, it is expected that residential electricity bill rates will be “limited” to 3% again this year.

But to get there, the state company intends to pass the bill on to large companies, as our Parliamentary Office revealed a few weeks ago.

For its part, Hydro-Québec denies wanting to increase rates for commercial and industrial customers, and is talking about an increase of 4-5% for this sector in the next year.

Increase in municipal taxes

Municipal elections will take place in 2025, and this is already being felt. Even though several municipalities have already warned that they would increase property taxes, the increases are less significant than they have been in recent years.

In Montreal, Mayor Valérie Plante announced an average increase of 2.2% for residential buildings and 1.9% for commercial buildings. Last year, these increases were 4.9% and 4.6%, respectively. In Laval and Longueuil, residents will face increases of 1.9% and 3.2% respectively.

After increasing taxes by 3.9% in 2024, the mayor of Quebec, Bruno Marchand, announced that the increase will only be 2.9% next year. In Gatineau and Sherbrooke, taxpayers will experience increases of 3.1% and 3.2%.

Extended leave for driving license

Quebec drivers will still save a substantial amount on their license in 2025, for a fourth consecutive year. Holders of class 5 (car) and class 6 (motorcycle) licenses will once again be exempt from paying the insurance contribution.

They will therefore only have to pay the sum of $26.25, provided they have a driving record free of any demerit points, which represents a saving of $92 for a class 5 license.

By announcing the extension of this leave at the end of December, the Minister of Transport Geneviève Guilbault explained that this discount is made possible by the reduction in the amounts of compensation to be paid to road accident victims, due to the improvement in the road safety record, and by the good returns from the Quebec Automobile Insurance Fund, which is funded by contributions from motorists.

Increase in registration fees

Registration fees will increase significantly in Quebec and Montreal starting January 1. In the capital, these fees will increase from $30 to $90 per vehicle, an increase of 200%. In the mainland, they go from $59 to $150, an increase of 154%.

Taking the bus will cost more too

Even though the Legault government will pay more than $880 million in aid to public transit companies to cover part of their shortfall over the next four years, many will still increase fares for their users.

The Regional Metropolitan Transport Authority (ARTM), responsible for managing public transport in greater Montreal, and the Réseau de Transport de la Capitale, in Quebec, are giving themselves until May to announce their colors.

Elsewhere, the price shock has already been announced. As of 1^is January, the Société de transport de Sherbrooke (STS) will increase fares by approximately 2.8%, while the price of the regular monthly pass will increase from $87.50 to $90. For its part, the Société de transport de l’Outaouais is increasing its prices by approximately 3%, increasing the cost of the regular monthly pass from $110 to $113, which represents $36 more for the year.

Contributions to the Quebec Pension Plan on the rise

From 1^is January, the maximum contribution to the Quebec Pension Plan (QPP) increases by $774.40. If you contribute the maximum, you will pay $4,735.20 in 2025, or $387.20 more in the last year, an increase of 8.9%. And if you are self-employed, you must multiply this amount by two.

Employment insurance premium on the rise

Quebec’s employment insurance premium rate and the maximum threshold for insurable earnings will increase in 2025. This means that employees will pay up to $860.67, while employers will pay $1,204.94 per year. Quebec employment insurance. This represents an increase of $26.43 for employees and $37 for employers. Self-employed workers will be responsible for all of these increases, i.e. $63.43.

Travel: baggage fees and airport fees on the rise

Those flying the lowest fare with Air Canada will now get less bang for their buck. From January 3, 2025, they will have to check in their baggage even if it is only a backpack, at a cost of $35 for a first bag and $50 for the second. A $65 fee will be charged to customers who fail to check their baggage before boarding.

Furthermore, Quebec Jean-Lesage Airport announced an increase in its airport improvement fees (FAA). Starting January 1, the FAA will increase from $35 to $40 (plus taxes) for passengers departing from Quebec, an increase of 14.3%.

Increase in federal alcohol tax

There’s no escaping it: the federal excise tax on beer, wine and spirits increases on 1^is April each year. In 2025, the increase will be 2%, which amounts to an increase of a few pennies per bottle of beer.

Indexation of alimony

As every year, alimony will be indexed on January 1st. The automatic indexation of 2.6% applies to all judgments granting alimony, unless the court decides otherwise.