Frequently asked questions

Increase on the insurance premium tax rate

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.

The Quebec Government decided to change the Insurance Premium Tax (IPT) rate to align it with the Quebec Sales Tax (QST) rate.

No. Since this is a government-imposed tax, it automatically applies to all eligible policies.

We recommend that you submit payment for your 2026 invoices before January 1, 2027. This will allow you to avoid paying the additional tax resulting from the new rate on those invoices.

This change applies to group insurance as well as home, car, recreational vehicle, commercial, and commercial vehicle insurance.

No. The increase does not affect the insurance premium. Only the tax is changing. As a result, the total amount payable may be higher, even if the insurance premium remains the same.

No, the coverage, benefits and terms remain the same.

If you receive an invoice from Beneva, you do not need to take any action. The new rate will be applied automatically.

If your organization calculates the amounts payable to Beneva itself, you must ensure that your systems apply the 9.975% tax rate effective January 1, 2027.

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.

The applicable tax rate depends on the date Beneva receives the payment. Therefore, the new 9.975% tax rate applies to payments received on or after January 1, 2027, even if the invoice was issued in 2026.

To avoid an adjustment due to the tax rate difference, we recommend that you send us your payments before January 1, 2027. Please also ensure that your records are up to date, particularly in the case of enrolment, termination or a salary change.

The applicable tax rate depends on the date Beneva receives the 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.

In such a case, the new 9.975% tax rate will apply. An adjustment may then be added to accurately reflect this new rate.

The tax rate is determined based on the date the payment is received. Therefore, the amount withdrawn may vary if Beneva receives a payment on or after January 1, 2027.

The 9.975% tax rate applies to all payments collected on or after January 1, 2027. If payroll deductions were made using the previous 9% rate, the policyholder will be required to pay the difference in tax.

Policyholders remain responsible for collecting and remitting the applicable tax rate. For any payment received on or after January 1, 2027, the 9.975% rate applies.

If a payment has been calculated using the previous rate, an adjustment will be required to repay the tax difference.

The date the payment is received determines the applicable tax rate. If we receive the payment on or before December 31, 2026, the 9% rate applies. If we receive it on or after January 1, 2027, the 9.975% rate applies.