iAtoday

To ensure harmonization with the Quebec Sales Tax (QST), the Government of Quebec has announced an increase in the tax rate applicable to insurance premiums. This change will take effect on January 1, 2027, increasing the insurance premium tax rate from 9% to 9.975%. 

Impacts on your clients

Groups billed by iA Financial Group

We will automatically apply the new tax rate to their invoices effective January 1, 2027. 

Self-administered groups or third-party administrators

For any premium paid after December 31, 2026, these groups will need to adjust the tax rate applied to premiums included in their remittances and inform us of the applicable amount of taxable premiums.

For example, an insurance premium covering the month of December 2026 but paid in January 2027 would be subject to the new rate of 9.975%, as the applicable rate is determined based on the payment date, rather than the period covered by the premium.

Upcoming communications

We will be sending a communiqué to group insurance plan administrators on October 26. We will also send a targeted communication to groups that are neither billed nor administered by iA Financial Group.

See the French version of the communiqué.

For more information about this change, please refer to the Act respecting the Québec Sales Tax and the 2025-2026 Budget Plan, Section D.20 (in French only).

If you have any questions, please contact your iA Financial Group Account Executive.