Home province of Cirque du Soleil and famous for it’s poutines, there’s always a beautiful corner in Québec that will appeal to everyone.
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.
Québec’s Income Tax Brackets for the 2021 Tax Year
Taxable Annual Income
|15%||on the first $45,105||$45,105|
|20%||on the next $45,105||over $45,105 up to $90,200|
|24%||on the next $19,555||over $90,200 up to $109,755|
|25.75%||on the portion over $109,755||over $109,755|
For 2020 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 is called the “basic personal” or “personal amount.” For the 2021 tax year, the Federal Basic Personal Amount (BPA) is $13,808, while the Québec Basic Personal Amount is $15,728.
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. Example: If you are filing your 2021 tax return, you’d have to have lived in the province on December 31,2021.
Québec Provincial Tax Credits
- Solidarity Tax Credit (Crédit d’impôt de Solidarité) – 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 part, 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 (Crédit d’impôt pour aidant naturel) – Although there is also a federal credit for this, Québec residents have an opportunity to claim 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 (Crédit d’impôt relatif à la prime au travail) – 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 and determine the credit you’re eligible to receive for the Work Premium.
- Independent living tax credit for Seniors (Crédit d’impôt pour frais engagé par un aîné pour maintenir son autonomie) – You have to be at least 70 years old at the end of the fiscal year (December 31) to claim this credit. This credit is meant to help in reducing the expenses related to home support/reduce the cost of rent in residence. For more information, review the eligibility details and how to claim the credit.
- Family allowance (Allocation Famille) – Paid for by the Québec government to support eligible families with one or more dependent children living with them, under the age of 18. For more information, review eligibility and details on what this allowance covers.
- Tax Shield (Crédit d’impôt Bouclier Fiscal) – 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 (Crédit d’impôt pour prolongation de carrière) – 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 if the individual is aged 60 to 64 and $11,000 if the individual is aged 65 and over. Visit this link from Revenu Québec for more information.
- Children’s activities (Crédit d’impôt pour activités des enfants) – Although the federal government eliminated 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 (Crédit d’impôt pour les chauffeurs et les propriétaire de taxi) – If you are 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 (Frais Médicaux) -There are certain medical expenses that Québec residents can access such as expenses for 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.
- Québec Parents Insurance Plan or QPIP (Cotisation au régime Québécois d’assurance parentale) – Allows parents to share parental benefits, each parent must decide who will claim this credit prior to filing your tax return. For more information from Revenu Québec visit this link, as well as this information provided by the CRA.
For federal rates, review the following TurboTax article – Canada’s Federal Personal Income Tax Brackets and Tax Rates
Key Points to Remember
If you lived in Québec on December 31 of the year in question, you must file a separate provincial return as well as your federal.
- Understand the difference between provincial rates and federal ones.
- Be sure to check the provincial credits to maximize your eligibility to certain credits.