What's new for 2027

CPP base rate reduction – from 4.95% to 4.75%. The enhanced CPP contribution rate remains 1% and the CPP2 contribution rate remains at 4% (between the YMPE and YAMPE).

Group Insurance Tax – Revenu Quebec has confirmed that the Quebec group insurance tax rate will be increased from 9% to match the QST rate of 9.975%.

Fondaction / FTQ tax credit eligibility – To qualify for the 30% federal and provincial tax credit for labour-sponsored funds in 2027, an employee’s taxable income in 2025 (Line 299 of the Quebec income tax return) must have been $129,590 or less. Prior to the first payroll of each year, employees are responsible for asking their employer not to apply the 30% tax credit, if that’s necessary based on their taxable income from 2 years earlier. This change was originally going to be effective with the 2024 tax year, but was postponed until the 2027 tax year.

Nova Scotia – Among other labour standard changes, starting April 1, 2027:

• the overtime threshold will be reduced from 48 hours per week to 44 hours per week,

• the entitlement to overtime for exceeding the threshold will be tied to an employee being permitted to work those hours, rather than being required to work them,

• the payment of tips will be protected in the same manner as other wages and require employers to post any tip pooling arrangements where employees can see them.