Québec: Tax rates and the most popular credits, deductions, programs and rebates
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Québec Tax Rates
In Québec, provincial tax is calculated on the TP1 forms, as well as refundable and non-refundable tax credits. The Québec return is submitted to Revenu Québec, separately from the federal return, which is submitted to Revenue Canada (CRA).
Tax brackets for Québec:
- 16% on the first $40,095 of taxable income, +
- 20% on the next $40,096, +
- 24% on the next $82,190, +
- 25.75% on the amount over $100,000
Your taxable income represents your total income minus federal deductions like the RRSP deduction and child care expenses. Like its name implies, it is the amount on which you pay income tax.
What are some of the tax credits, deductions and rebates specific to Québec?
Solidarity tax credit
Since July 2011, this monthly amount is being deposited directly into eligible taxpayers’ bank account. You must apply for this credit. This single amount has replaced the QST credit, the credit for individuals living in northern villages and the property tax refund.
Child Assistance payment
If your child is born in Québec, you do not have to apply to receive the payments; simply register the birth of your child. You will have to apply in other situations. This payment is separate from the Canada Child Tax Benefit. Neither benefit is taxable.
Québec Parental Insurance Plan
The QPIP is set up to pay benefits to all eligible workers - salaried and/or self-employed - taking maternity leave, paternity leave, parental leave or adoption leave.
Tax Credit for Child-Care Expenses
This credit is intended for families to help cover eligible child care expenses.
The Tax Credit for Home-Support Services for Seniors makes it easier for seniors to stay in their home. The Shelter Allowance program helps low-income, seniors and families pay their rent.
Québec deduction for workers
This tax deduction equals 6% of your eligible work income, up to a maximum.
For more information about QC tax credits, please visit the Revenu Québec website.
Some Québec tax forms
Except for the forms used to calculate federal income tax, all tax forms used to calculate provincial income tax and tax credits are specific to Revenu Québec.
- The Tax Credit for Workers 65 or Older is a non-refundable credit available to residents of Québec whose eligible work income earned after they turn 65 is over $5,000.
- For its part, the Independent Living Tax Credit for Seniors is a refundable tax credit designed to compensate you or your spouse for expenses over $500 for eligible equipment or fixtures, and for expenses related to stays in a functional rehabilitation transition unit
- Since January 2012, the Drive Electric Program offers a purchase or lease rebate of up to $8,000 for electric and hybrid vehicles. The program replaces the tax credit that was being offered from 2009 to 2011.
Energy Star programs offer rebates for lighting fixtures, programmable thermostats.
Residential programs are offered by the Agence de l’efficacité énergétique du Québec . Énonologis is an energy efficiency program for low-income households. Rénoclimat is an energy-saving renovation program. Novoclimat is a certification program for new single-family homes, pre-fabricated homes and duplexes. GazMétro has several programs designed to increase energy efficiency, including a rebate with the Energy Efficiency Fund. Hydro Québec offers a mail-in rebate for Energy Star qualified light fixtures and bulbs.