Home province of Cirque du Soleil, poutine, and loved for its beautiful naturescapes, there’s surely a corner in Québec that will appeal to you.
Québec is the only province in Canada where residents must file 2 separate tax returns— one federally, (T1) to the CRA, and one provincially, (TP1) to Revenu Québec (RQ). They have their own unique forms and schedules, and certain rules apply only to this province. Happily, you can file both using TurboTax.
- Québec is the only province in Canada where residents must file 2 separate tax returns— a T1 and TP1.
- Québec uses a progressive tax structure with four different tax brackets.
- For the 2023 tax year, the federal basic personal amount (BPA) is $15,000, while the Québec basic personal amount is $17,183.
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For 2023, Revenu Quebec has recognized the need for tax relief and has decreased the first two income tax brackets by 1% each.
From 15% to 14% in the first bracket, and from 20% to 19% in the second.
This will ultimately affect the source deductions from employment income earned. You can read more about how these changes will change payroll deductions here.
One of the changes that stands out the most is the new rule on flipping a property. As of January 10, 2023 If you purchase or own real estate property with the intention of renovating to sell it for profit, and do not own it for more than 365 consecutive days, your profits are fully taxable as business income, and you will not be eligible for the 50% capital gain inclusion rate or principal residence exemption. Thankfully, there are certain situations where the new rule will not apply.
To see some of the other changes Revenu Québec has made for 2023 visit their web page: Principal changes for 2023.
Québec’s income tax brackets for Tax Year 2023
Taxable Annual Income
on the first $49,275
For 2022 tax rates, review this link from the Canadian government.
How it all works for Québec residents
As with most provinces, Québec uses a progressive tax structure with four different tax brackets. The tax brackets increase each year, based on inflation. Visit Revenu Québec’s income tax rates page for current tax bracket rates.
There’s an allowable amount of income that you can earn before you start paying taxes. That’s called the “basic personal amount” or “BPA”. For the 20232 tax year, the federal basic personal amount (BPA) is $15,000, while the Québec basic personal amount is $17,183.
Along with your federal credits, below is a list of provincial credits that are exclusive to Québec residents— note that these credits can only be claimed if you lived in Québec on Dec 31, of the fiscal year you are filing for.
For example, if you’re filing your 2023 tax return, you’d have to have lived in the province on December 31, 2023.
Québec’s provincial tax credits and benefits
Revenu Quebec has also prepared a handy table here listing the personal tax credit amounts for 2023.
- Solidarity tax credit: This is a refundable credit for low and middle-income families. There are 3 components to this credit: housing, QST, and those living in northern villages. Depending upon your eligibility, you may qualify for parts or all of the components. For more information, have a look at this video from Revenu Québec, showing you how to claim it, and this article from TurboTax.
- Tax credit for caregivers: Although there’s a federal credit for this, Québec residents have an opportunity to claim it provincially as well. The refundable tax credit for informal caregivers is provided for qualifying caregivers. Be sure to understand your eligibility and how to claim this credit.
- Work premium tax credit: This credit is designed to encourage you to start or continue working. You may also qualify for the supplement work premium if you qualify for the tax credit. The additional work premium is determined based on your income and your family situation. Review the eligibility details to see if you’re eligible to receive the work premium tax credits.
- Independent living tax credit for seniors: You have to be at least 70 years old at the end of the fiscal year (December 31) to claim this credit. This provincial credit is meant to help in reducing the expenses related to home support or reduce the cost of rent in residence. For more information, review the eligibility details and how to claim the credit.
- Family allowance: Paid for by the Québec government to support eligible families with one or more dependent children living with them, under the age of 18. You can get more information on eligibility details for what this allowance covers here.
- Tax shield: This credit is refundable and is intended to help offset the impact an increase in your income will have on your work credits, such as the tax credit for childcare expenses and the work premium credit. For more information, review the eligibility and details on how to claim this credit.
- Career extension : Individuals aged 60 and over, and residents as of December 31, are eligible for this non-refundable tax credit. The credit is calculated on a maximum work income of $10,000 for individuals who are 60 to 64 years old, and $11,000 for people who are over 65 years old. Visit this link from Revenu Québec for more information.
- Children’s activities: Although the federal government removed this credit a few years back, Québec still has a provincial tax credit for its residents. This credit is related to physical activities, arts, and recreational activities for an eligible child. For more information, review the eligibility and details on how to claim this credit.
- Taxi drivers or taxi owners: If you’re a taxi driver or owner with a permit, you may be able to claim this credit. For more information, review the eligibility and details on how to claim this credit.
- Medical expenses: There are certain medical expenses that Québec residents can claim, such as their premium paid to RAMQ for the year before. Don’t forget your occasional expenses like eyeglass frames up to $200 per person. For specifics, review the information through this link from RQ. For federal medical expenses, you can find those here.
- Electric vehicle (ZEV) rebates: In 2022, Québec surpassed 130,000 all-electric and plug-in hybrid vehicles on its roads. Learn about the rebates available for the installation of a charging station or purchase of a new or used electric vehicle. You could receive up to $7,000 for a new or $3,500 for a used ZEV vehicle.
For federal rates, review the following TurboTax article – Canada’s federal personal income tax brackets and tax rates.
To our fellow Québecers who are ready to start saving, watch our resident tax expert, Emily, share these 10 Québec tax breaks to save you money.