Quebec follows federal government and delays capital gains tax hike until 2026

Finance Minister Dominic LeBlanc attends a first ministers meeting in Ottawa on Wednesday, Jan.15, 2025. (Sean Kilpatrick/The Canadian Press)

QUÉBEC — Quebec's Finance Department says it is following the federal government's lead and delaying a planned hike in the capital gains tax until Jan. 1, 2026.

The federal Liberals said in their April budget that they would raise the portion of capital gains on which companies pay tax to two-thirds from one-half, and raise it by the same amount for individuals with capital gains earnings above $250,000.

In response, Quebec said it would raise its provincial capital gains tax by the same percentage.

But the federal proposal has not passed in Parliament, which is prorogued until March 24.

On Friday, Ottawa said it would delay the implementation of the tax until January 2026 and introduce new exemptions to ensure most middle-class Canadians do not pay more tax.

Critics of the capital gains tax hike have said it would drive innovation and talent out of the country, but the Liberals say it's a way to bring more fairness to the tax system.

This report by The Canadian Press was first published Feb. 3, 2025.

The Canadian Press