Quebec's tax on insurance premiums (QTIP) rises from 9.00% to 9.975% on January 1, 2027. The rate that applies is determined by the date the premium is paid, not the month it covers. Below is what is changing, why the payment date matters, and what Effortless Admin clients need to do before year end.

What is the Quebec tax on insurance premiums?

Quebec charges a tax on insurance premiums, set out in the Act respecting the Québec sales tax. It applies to insurance premiums, including those for group life, disability and health coverage, paid by individuals and organizations residing in Quebec. The current rate is 9.00%. It is separate from the Quebec sales tax (QST), even though the two rates are being aligned.

The tax rate is determined on the date the premium is paid, and whoever receives the premium collects the associated tax.

What is changing on January 1, 2027?

Quebec's tax on insurance premiums rises from 9.00% to 9.975% on January 1, 2027, bringing it in line with the QST rate. The change was announced in Quebec's Budget 2025-2026 and became law in October 2025 under Bill 99. Revenu Québec confirmed in its tax news notice of April 9, 2026 that the new rate applies to insurance premiums paid after December 31, 2026.

Why does the payment date matter?

The rate is set by the date the premium is paid, not by the month of coverage. A premium paid in December reflects the tax rate of 9.00% on applicable premiums. The same premium, paid in January, reflects the tax rate of 9.975%. This applies to any premium that remains unpaid on December 31, 2026, whatever period it covers.

What this means for Effortless Admin clients

If your benefits invoices include Quebec tax on insurance premiums, make sure Effortless Admin has received payment for outstanding invoices, including December and any earlier months still unpaid, on or before December 31, 2026. Applicable premiums we receive by December 31, 2026 are taxed at the current rate of 9.00%. Those we receive on or after January 1, 2027 are taxed at the new rate of 9.975%, regardless of the billing month. If invoices remain unpaid on December 31, 2026, the additional applicable tax will be billed retroactively.

What do I need to do before December 31?

December invoices are published on December 1. For the current tax rate of 9.00% to apply, make sure Effortless Admin has received payment for your December and earlier invoices by the deadline for your payment method.

What does not change?

• Your coverage, your carrier and your plan design are unaffected.
• Premiums that are not subject to Quebec tax on insurance premiums are not affected by this change.
• Your invoice schedule stays the same. December invoices are published December 1, and January invoices follow on January 1.
• From January 2027 onward, premiums subject to the Quebec tax will reflect the 9.975% rate.

Questions about your invoice?

If you are not sure whether your invoice includes Quebec tax on insurance premiums, or you want to confirm that a payment has been received, reach a member of our service team by chat, email or phone. We are happy to walk through it with you.

Further reading

• Harmonization of the insurance premiums tax rate with the QST rate | Revenu Québec
• Tax on insurance premiums | Revenu Québec

This post describes how Effortless Admin applies the Quebec tax on insurance premiums to the invoices it issues. It is general information, not tax advice. For questions about your organization's tax position, speak with your tax advisor.