Recent changes – Employees

• The prescribed capital cost for automobile expenses is increased from $37,000 to $38,000 (unchanged ceiling of $61,000 for an eligible zero-emission vehicle) and the monthly leasing cost ceiling is increased from $1,050 to $1,100 for purchase and lease agreements entered into since 2025.
• The reduction from 50% to 33.33% of the deduction for the employee stock option benefit was cancelled. As a result, the announced increase to the capital gains inclusion rate that had been slated for June 25, 2024 was cancelled.

FEDERAL

• As of 2026, a temporary refundable tax credit over five years equal to 5% of yearly eligible employment income up to a maximum of $22,000 (maximum annual credit of $1,100) will be granted to personal support workers employed by an eligible health care establishment and whose primary functions include assisting patients with their activities of daily living and mobilization.

QUEBEC

• Beginning in 2025, the key parameters of the tax credit for career extension were modified and the eligibility age was increased from 60 to 65.
• Since March 26, 2025, no new applications for the tax holiday for salaries paid to certain foreign specialists have been accepted.
• As of 2028, the cost of public transit passes paid or reimbursed by an employer for an employee to travel to work will not be a taxable benefit for the employee.