A study released on Sunday, Aug. 23, 2026, found that the smallest businesses operating in Quebec are subject to a tax burden that can be as much as five times greater than that faced by larger companies. The research was conducted by the Federation of Canadian Enterprises and Industry (FCEI).
The analysis compared tax rates applied to firms across a range of employee counts and revenue levels. Results showed that enterprises with fewer than ten employees or annual sales under a certain threshold incurred effective tax rates that far exceeded those of midsize and large corporations. In some cases, the disparity approached the maximum five‑fold difference cited in the report.
FCEI officials attribute the gap to Quebec’s tax framework, which includes several levies and credits that scale with business size. While larger firms benefit from broader deductions and lower marginal rates, the province’s smallest operators encounter a combination of payroll, sales and corporate taxes that together create a substantially heavier load. The study notes that this structure diverges from the fiscal treatment observed in other Canadian provinces.
The findings arrive amid ongoing debates about the province’s economic competitiveness and the support available to start‑up and micro‑enterprises. Policy makers and industry groups are expected to examine the data as part of broader discussions on tax reform. The report does not propose specific legislative changes, but it highlights the magnitude of the disparity and calls for further analysis of how the current system impacts small‑business sustainability in Quebec.