The Mega Deduction in Quebec

Quebec corporations pay a combined 11.2% on small business income (federal 9% + provincial 2.2%) and 26.5% at the general rate (15% + 11.5%). Every dollar deducted in year one reduces federal tax by the federal share, and Quebec tax as well if Quebec follows the federal rule.

Quebec administers its own corporate income tax and is not part of the federal collection agreement, so its rates are not in the Canada Revenue Agency table. Confirm the current rate and whether Quebec harmonizes with this federal measure before relying on these figures.

Tax reduction on a $100,000 purchase, by asset class

Does Quebec follow the federal Mega Deduction?

Not confirmed Quebec writes and administers its own corporate tax base. It does not adopt federal changes automatically: it harmonizes with a federal measure when it announces and passes the matching change, which it has done measure by measure before. Until it acts, Quebec's existing capital cost allowance rules apply to the provincial portion of the tax. According to Quebec's budget documents, those already include immediate expensing for specified property, such as manufacturing equipment, clean energy equipment and zero-emission vehicles, and an enhanced first-year deduction for other qualifying property. They are not the broader Mega Deduction.

Who collects Quebec corporate tax?

Revenu Québec administers Quebec's corporate and personal income taxes separately from the federal government. Quebec is outside the federal collection agreement.

Has Quebec said anything about this measure?

No Quebec harmonization announcement for this measure was found in official sources. Crowe BGK reports that Quebec's premier has said the province intends to harmonize, with no application details yet. That is a secondary source and we could not confirm it against an official Quebec release. Check Revenu Québec and the Ministère des Finances for bulletins.

Sole proprietors and partners

Quebec also administers personal income tax itself, so the same uncertainty applies to sole proprietors and partners. Existing Quebec CCA rules apply to unincorporated businesses until Quebec acts, and Revenu Québec has a separate form for individuals claiming Quebec's existing immediate-expensing property. The federal draft limits a non-corporate taxpayer to the income from the business or property source the asset is used in, so the deduction cannot create or deepen a loss.

Sources: Quebec 2026-27 budget, additional information · Quebec economic update, November 2025 · Revenu Québec: CCA for designated immediate-expensing property · Crowe BGK commentary (secondary source). The federal measure: Department of Finance announcement · Draft legislative proposals. The Mega Deduction is draft legislation announced 15 September 2026; none of this applies until it is enacted.

What sales tax does to your deductible cost in Quebec

Quebec charges GST 5% + QST 9.975% on most equipment purchases. A business registered for GST/HST recovers that tax through input tax credits, so it is not part of the capital cost and not part of what you deduct. Enter the price before tax in the calculator. Quebec sales tax is recoverable by registrants through input tax refunds, so like GST it stays out of the capital cost.

If you are not registered for GST/HST, the tax you cannot recover does form part of the capital cost. Most businesses buying equipment at this level are registered.

All asset types in Quebec

• Computer equipment
• Software
• Manufacturing and processing equipment
• General equipment, tools and furniture
• Commercial vehicles (vans, pickups, work trucks)
• Heavy trucks and tractors
• Zero-emission vehicles
• Patents, licences and acquired IP
• Clean energy and energy conservation equipment
• Data network infrastructure
• Farm machinery
• Construction and contractor equipment
• Medical and dental equipment
• Restaurant and hospitality equipment
• Media production equipment
• Aircraft
• Buildings and additions
• Goodwill, franchises and licences (Class 14.1)
• Passenger vehicles (Class 10.1)
• Qualified liquefaction equipment