The Quebec Finance Minister tabled the province’s 2026-2027 Budget on March 18, 2026, which financial experts are describing as an “economic update,” with the expectation of a more comprehensive budget to be presented by the incoming government, following Quebec’s Premier, François Legault’s replacement on April 12, 2026.
The following proposals would have an impact on payroll, should the measures be passed into legislation.
Introduction of an automated income tax return filing process by Revenu Québec on behalf of certain low-income individuals starting with the 2026 taxation year
Like the Canada Revenue Agency’s November 4, 2025 budget announcement, this Budget proposes Québec tax legislation be amended so that Revenu Québec can file income tax returns on behalf of certain and select low-income individuals, starting with the 2026 taxation year, to better access eligible tax credits and other government benefits. Individuals would be able to make amendments to their return or opt out of automatic filing. More details regarding income thresholds and other criteria are expected to be announced in spring 2027.
Changes to the Voluntary Retirement Savings Plan (VRSP)
Budget 2026-2027 proposes amendments to introduce new investment options requiring an employer contribution of at least 2 per cent of the employee’s salary. Details of the proposed changes will be announced by Retraite Québec in the near future. The government will continue to examine the retirement savings vehicles available to workers, including the possibility of establishing a public VRSP and increasing oversight of employer compliance with the Voluntary Retirement Savings Plans Act through audits of certain businesses by the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST). The Ministry of Finance did not provide further details during the Budget lockup; however, the National Payroll Institute will be contacting Retraite Québec and will notify its members of any additional details available.
Optimizing government debt collection
As part of the process of recovering sums owed to the government, nine public bodies can currently use the Revenu Québec compensation service. For example, if a person is entitled to a tax refund but owes sums to these bodies, this mechanism allows Revenu Québec to apply the refund to the payment of the debt owed to these bodies, preventing public funds from being paid out when there is an overdue financial obligation.
The government is announcing that it will introduce legislative amendments and regulatory changes to enable all public bodies to participate in Revenu Québec’s compensation service and to optimize the service. The Institute is hopeful that such a measure, if passed, could lead to a decrease in garnishment orders administered by employers.
Tax credit for Quebec news media
The government will implement a refundable tax credit for Quebec news media that will provide financial assistance equivalent to 35 per cent of wages paid to employees working in the production and presentation of original news content of general interest, subject to an annual salary cap of $85,000 per employee.
The government is also planning to extend the tax credit for three years to support the digital conversion of print media. The tax credit is currently 35 per cent, will be reduced to 20 per cent in 2027, and to 10 per cent in 2028.
The eligible expenses include salaries paid to full-time employees who spend at least 75 per cent of their time on eligible digital conversion activities.
The Institute will monitor these proposals and will provide updates to its members as they become available.