Frequently asked questions about the insurance premium tax increase
Your broker can help you understand how the increase will affect your total amount and provide you with more information, if needed.
About the increase
What's changing?
Effective January 1, 2027, the Quebec Government will increase the tax rate applicable to insurance premiums from 9% to 9.975%. This increase affects all insurers and will have an impact on the total amount payable.
Why is the tax rate increasing?
The Quebec Government decided to change the Insurance Premium Tax (IPT) rate to align it with the Quebec Sales Tax (QST) rate.
Can I avoid the increase?
No. Since this is a government-imposed tax, it automatically applies to all eligible policies.
Which insurance products are impacted by the increase?
This change applies to home, car, recreational vehicle, commercial, and commercial vehicle insurance.
Will my insurance premium increase?
No. The increase does not affect your insurance premium. Only the tax is changing. As a result, the total amount payable may be higher, even if your insurance premium remains the same.
Will my insurance policy change?
No, your coverage, benefits and terms remain the same.
Impact on payments
When will the impact of the increase be reflected?
The impact of the increase will be reflected on the first invoice issued in 2027. An invoice reflecting the new 9.975% tax rate will be sent to all affected policyholders, even if there are no changes to their policy. For more information or questions, you can always contact your broker.
How can I determine the exact impact on the amounts I have to pay?
The exact amounts will appear on your renewal and other insurance documents. You will receive them via your preferred method of communication.
You can also contact your broker for more information.
Who can I contact for more information?
You can contact your broker. They will be able to assist you and answer any questions you may have.
My invoice was issued in 2026, but I am paying it in 2027. Which tax rate applies?
The applicable tax rate depends on the date your payment is received.
If you make a payment after January 1, 2027, the new rate of 9.975% will apply, even if your invoice was issued in 2026. An adjustment may then be added to accurately reflect the new rate.
What happens if my payment is late?
The applicable tax rate depends on the date we receive your payment. If a payment is received after January 1, 2027, the new 9.975% tax rate will apply. An adjustment may then be added to accurately reflect this new rate.
This adjustment relates solely to the applicable tax and does not constitute a late payment penalty. Any interest charges or penalties remain subject to the terms and conditions of your policy.
I make my payment in advance. Which tax rate applies?
If you make your payment before January 1, 2027, the tax rate in effect on that date applies, i.e. 9%.
Which tax rate applies if an automatic withdrawal is declined in 2026 and received in 2027?
If a payment that was declined in 2026 is ultimately received in 2027, the new 9.975% tax rate will apply. An adjustment may then be added to accurately reflect this new rate.
How does the increase apply to automatic withdrawals?
The tax rate is determined based on the date the payment is received. As a result, the amount withdrawn may vary if we receive your payment after January 1, 2027.