Article

2024 Provincial budget commentary

Alberta, British Columbia, Ontario and Quebec

Mar 27, 2024
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Indirect tax
Personal tax planning Business tax Private client services Federal provincial budget

As we progress in 2024, Canada’s provinces and territories are poised to release their budget plans for the upcoming year. This article will provide commentary on four key Canadian provinces—Ontario, Alberta, British Columbia and Quebec—exploring the key tax and economic considerations proposed in the budgets.

British Columbia released their 2024 budget on February 22, 2024, discussing real estate, tax credits and technology. Additionally, Alberta released their 2024 budget on February 29, announcing tax relief for individuals, a short-term rental levy and the reinstatement of the fuel tax relief program. Quebec's budget, released on March 12, focuses on supporting Quebecers, cuts to address the budget deficit and new measures to used road vehicle sales tax. Ontario's budgetary plans, unveiled on March 26, highlight three key measures: the introduction of a municipal vacant homes tax policy, limited tax relief due to the projected budget deficit until fiscal year 2026-27, and extended relief for gas and fuel taxes.


Ontario budget highlights

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Municipal vacant homes tax

All municipalities will be given the authority to levy their own taxes on vacant homes under a new provincial policy framework.

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Limited tax relief due to budget deficit

Ontario’s projected budget deficit until fiscal year 2026-27 supports a lack of tax cuts in the medium term.

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Extended relief for gas and fuel taxes 

Ontario extends the reduction in gas and fuel taxes for an additional six months to provide relief for consumers.


Quebec budget highlights

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Supporting Quebecers

Quebec continues supporting low-income individuals and parents with handicapped children by expanding various means-tested assistance programs.

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Cuts to address budget deficit

Phasing out of targeted tax credits and certain tax increases to address Quebec’s projected budget deficit.

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Monitoring the used road vehicle market

New measures to adjust Quebec Sales Tax in the used road vehicle market were introduced.


Alberta budget highlights

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Tax relief for individuals

A new 8% tax bracket for the first $60,000 of income was introduced along with a new one-time refundable tax credit for individuals working in key occupations who relocate to Alberta.

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Short-term rental levy

Short-term rental online brokers like Airbnb will be required to collect and remit a tourism levy effective Oct. 1, 2024.


British Columbia budget highlights

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Real estate

Various measures to improve housing affordability have been introduced. These will likely impact residential property prices and demand.

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Supporting the BC economy

Expansions to existing tax credits have been proposed to stimulate key industries and buttress targeted economic and social policies.

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Technology

Retroactive PST adjustments to software-related services raise questions as to the applicability of sales tax to previous supplies of digital services.


RSM contributors

Clara Pham, Partner
Farryn Cohn, Sr. Manager
Patricia Contreras, Manager
Sigita Bersenas, Supervisor
Elizabeth Ojesekhoba, Associate
Jim Niazi, Associate
Melina Rocha, Sr. Manager

Daniel Mahne, Sr. Manager
Simon Townsend, Manager
Chetna Thapar, Supervisor
Cassandra Knapman, Supervisor
Mamtha Shree, Associate
Gautam Rishi, Sr. Director

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