The year 2025 promises to be difficult for the wallets of Quebecers, while several tax increases are expected this year, according to a new analysis from the Canadian Taxpayers Federation (CCF). Here’s what awaits you so that you can prepare yourself as best as possible, both mentally and financially.
At the end of December, the organization released its annual report, New Year’s Tax Changes, revealing the biggest financial burdens you could face in the near future. And the observation is unequivocal: tax increases “will give Quebecers a headache,” says Nicolas Gagnon, Quebec director for the FCC in a press release.
“In 2025, Quebecers will have to face even higher costs, while the Legault government increases payroll taxes and the mayors of Montreal and Quebec increase the bill with drastic increases in registration taxes », warns Mr. Gagnon.
Here’s what you need to know: Several amounts and fees have been increased, which will have a direct effect on your wallet as well as on the tax that you may have to pay in both Quebec and Canada.
In addition, the provincial government announced an increase in mandatory contributions to the Quebec Pension Plan (QPP) and Employment Insurance (EI) in 2025. These increases will represent up to $218 additional per worker for ‘year. Thus, a person who earns an annual income of $78,000 or more will have to pay approximately $4,540 in payroll taxes, estimates the FCC.
Furthermore, motorists in Montreal and Quebec will experience spectacular increases in registration fees from the start of January 2025. In Greater Montreal, the bill will increase from $59 to $150 per vehicle, an increase of 154%. For a family with two cars, this represents an annual bill of $300.
In Quebec, fees will jump from $30 to $90 per vehicle, an increase of 200%. A family with two vehicles will therefore have to pay $180 annually.
In addition to provincial increases, the Trudeau government plans significant increases, including an increase in capital gains tax, increased taxes on alcohol, as well as taxes on digital services and streaming online.
You can view the FCC’s full report on tax changes in 2025 here.
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