Top Quebec Tax Tips to Save Thousands in 2025

Filing your taxes in Quebec can be overwhelming. With separate provincial and federal systems, dozens of overlapping credits, and complex small business rules, it's no wonder so many taxpayers leave money on the table. But with the right approach, 2025 can be your most efficient tax year yet.

At Mackisen Consultation Inc., our team of 125+ professionals—including chartered accountants, tax lawyers, and auditors—has helped thousands of Quebec residents and business owners uncover missed opportunities and stay compliant. This blog shares our top tax strategies for 2025, based on up-to-date law and real-world client success.

Optimize Your RRSP and TFSA

Don't underestimate the power of registered accounts. RRSPs reduce your taxable income for the year, and TFSA gains are entirely tax-free. In 2025, the TFSA contribution limit is expected to be $7,000. RRSP contribution limits are 18% of your 2024 income, up to $31,560.

Tip: If you're in a higher tax bracket now but expect to be in a lower bracket later, prioritize your RRSP. If your income is lower now, the TFSA provides more flexibility without triggering future tax on withdrawals.

Maximize Quebec-Specific Tax Credits

Unlike most provinces, Quebec has a host of unique provincial tax benefits in addition to federal credits. These include:

• Solidarity Tax Credit

• Work Premium Credit (Prime au travail)

• Refundable Tax Credit for Childcare Expenses

• Tax Credit for Home-Support Services for Seniors

• Education and Tuition Credits

• Quebec Pension Plan and Parental Insurance Plan optimization

Many of these credits require you to file Schedule D or include additional documentation like RL slips. Missing them means missing real money.

Claim All Legitimate Business Expenses

Whether you're self-employed, incorporated, or running a side hustle, knowing what you can deduct is essential. Common overlooked deductions in Quebec include:

• QST and GST paid on supplies (recoverable if registered)

• Business use of home expenses

• Advertising and promotion

• Professional memberships and software

• Meals (50%) and travel tied to income generation

Ensure your business is properly registered for QST and GST. Once you surpass $30,000 in taxable revenues, registration is mandatory.

Use a Holding Company if You're Growing Wealth

A holding company in Canada (and Quebec) allows you to defer tax, protect assets, and plan intergenerational transfers. If you're accumulating retained earnings or investing company profits into real estate or stocks, talk to a tax advisor about structuring with a holding company. Section 85 rollovers and capital dividend accounts can preserve significant value.

Understand Quebec vs Federal Filing Obligations

Quebec is the only province that requires dual filing. You must submit:

• A federal T1 or T2 to the Canada Revenue Agency

• A provincial TP-1 or CO-17 to Revenu Quebec

Penalties apply for missed or late filings with either agency. Ensure both returns are accurate and consistent, especially if you’re incorporated.

Leverage Real Estate Tax Strategies

Own rental property? Plan to sell your home? Here are must-know strategies:

• Use the Principal Residence Exemption wisely. If your property was partially rented, calculate the exemption ratio carefully.

• Depreciation (CCA) can lower your rental income but reduces your cost base on sale—plan accordingly.

• First-time homebuyers in Quebec can benefit from both the federal Home Buyers’ Plan and Quebec tax credits.

• For short-term rentals (like Airbnb), remember to charge GST and QST if applicable and report all revenue.

Avoid Common Penalties

Top mistakes we see include:

• Filing only with the CRA and forgetting Revenu Quebec

• Not reporting all sources of income (tips, crypto, overseas)

• Missing GST/QST filings if self-employed or incorporated

• Failing to keep adequate receipts or mileage logs

• Not making installment payments when required

CRA and Revenu Quebec both impose interest daily on unpaid balances and offer limited relief. Prevent problems before they start.

Legal Framework to Know

Key laws and acts that guide Quebec tax compliance:

• Federal Income Tax Act (ITA)

• Quebec Taxation Act

• Excise Tax Act (for GST)

• Act respecting the Quebec sales tax (for QST)

Staying compliant means understanding both levels of tax law and aligning deductions and reporting.