FOR IMMEDIATE RELEASE
Canadian Party of Quebec Unveils the Largest Tax Reduction Package in Modern Quebec History
A proposed four-year provincial tax reform designed to increase take-home pay, reward work, attract investment and improve Quebec’s economic competitiveness.
MONTREAL, QUEBEC — August 9, 2026 — The Canadian Party of Quebec (CaPQ) today unveiled a proposed four-year provincial tax reform designed to increase take-home pay, reward work, attract investment and improve Quebec’s economic competitiveness. The measures would be subject to legislation, a detailed fiscal framework and consultation with Quebecers.
A higher basic personal amount
The CaPQ would increase Quebec's basic personal amount from approximately $18,952 in 2026 to $23,500 in 2030. This is an increase of $4,548, or approximately 24%. The proposed schedule is $20,000 in 2027, $21,500 in 2028, $22,500 in 2029, and $23,500 in 2030.
Lower provincial income tax rates
Year | BPA | First rate / threshold | Second rate / threshold | Third rate / threshold | Top rate |
|---|---|---|---|---|---|
2027 | $20,000 | 12.75% / $56,000 | 16.5% / $112,000 | 20.5% / $220,000 | 23.5% |
2028 | $21,500 | 12.25% / $58,000 | 16.0% / $116,000 | 20.5% / $230,000 | 23.5% |
2029 | $22,500 | 11.75% / $59,000 | 15.8% / $118,000 | 20.5% / $240,000 | 23.5% |
2030 | $23,500 | 11.75% / $60,000 | 15.75% / $120,000 | 20.5% / $250,000 | 23.5% |
By 2030, the proposed reductions would amount to 225 basis points for the first bracket, 325 for the second, 350 for the third and 225 for the top rate. The upper threshold of the 20.5% bracket would rise to $250,000, compared with approximately $132,245 under 2026 Quebec parameters.
Illustrative tax savings
The estimates below compare the proposal with a status quo in which 2026 provincial tax parameters are indexed by an assumed 2% annually. They use statutory rates and brackets only, and exclude the overtime measure, health benefit reform, federal tax, other credits, deductions and individual circumstances.
Annual taxable income | Estimated four-year provincial savings |
|---|---|
$50K | About $3,184 |
$80K | About $6,635 |
$120K | About $11,977 |
$180K | About $23,247 |
$250K | About $36,147 |
Corporate competitiveness
The CaPQ would reduce the general provincial corporate income tax rate from 11.5% to 5% by 2030. This would reduce the rate by 6.5 percentage points, or approximately 56.5% relative to the current rate. The proposed phase-in is 9.875% in 2027, 8.25% in 2028, 6.625% in 2029, and 5% in 2030. Small business rates and other specialized regimes will be addressed in a separate entrepreneurship platform.
Rewarding work and reviewing health benefit taxation
The CaPQ would exempt the first $3,500 of eligible annual overtime earnings from Quebec provincial income tax. It would also eliminate Quebec provincial income taxation of eligible employer-paid health and dental benefits, with consequential changes to RL-1 reporting requirements. The potential benefit, illustratively estimated at $600 to $1,500 annually for some workers, would vary according to the value of the benefits and the employee marginal rate.
Fiscal responsibility and economic growth
The CaPQ will publish a fully-costed fiscal framework identifying the annual cost of each measure, the savings available from reviewing corporate subsidies and tax credits, and the timing of any transitional fiscal effects. The party estimates that its broader package, including energy development, housing construction, infrastructure, regulatory modernization and tax reform, could increase Quebec long-run real GDP relative to the status quo. The 5% to 7% figure is an upside scenario, not a forecast of the tax measures alone, and will be supported by published assumptions and modelling.
Lower taxes. Reward work. Attract investment. Grow Quebec.
The Canadian Party of Quebec is building a more competitive, prosperous and economically dynamic Quebec.