Why Do Quebecers File Two Tax Returns?…and Other Uniquely Local Features

Quebecers are the only taxpayers in the country who must file two separate income tax returns: one with Revenu Québec and another with the Canada Revenue Agency (CRA). Residents of other provinces and territories only file a single federal return, and the federal government then redistributes the appropriate funds to each province or territory.

This system, which has been in place for more than 70 years, was motivated by several factors—including Quebec's desire for fiscal autonomy, championed by Maurice Duplessis.

Why Does Quebec Have Its Own Tax System?

During World War II (1939-1945), the provinces gave up their rights to collect certain taxes—including personal income tax, corporate tax, and inheritance duties—to the federal government in exchange for annual payments. This arrangement was supposed to be temporary. However, after the war ended, the federal government continued collecting these taxes on behalf of the provinces.

This situation displeased Quebec's premier at the time, Maurice Duplessis, who wanted his province to regain its fiscal independence. In 1954, he passed the Provincial Income Tax Act, which reinstated the provincial income tax on individuals. Since then, Quebecers have been the only Canadians who must complete two separate income tax returns—one for the federal government and one for the provincial government.

Whats different about Quebecs income tax return?

Quebec taxpayers not only have to complete two different income tax returns—one for the Canada Revenue Agency (T1) and one for Revenu Québec (TP1)—but they may also need to fill out various Quebec-specific forms and schedules, in addition to the federal ones. These include:

• Schedule F - Contribution to the Health Services Fund
• Schedule K - Contribution to Quebec's Public Prescription Drug Insurance Plan
• Schedule R - Contribution to the Québec Parental Insurance Plan (QPIP)

Quebecs tax brackets

Quebec's tax system is progressive, which means that the more you earn, the higher your tax rate. Because the tax system works in brackets, your taxable income may fall into several different tax rates. It's also worth noting that the income thresholds for each bracket are indexed annually to inflation.

Here are the provincial tax rates for 2025.

Taxable Income Bracket	Rate
$53,255 or less	14%
Over $53,255 up to $106,495	19%
Over $106,495 up to $129,590	24%
Over $129,590	25.75%

Example: If your annual salary is $40,000, you'll pay 14%, or $5,600, in provincial income tax (not counting any deductions). If you earn $80,000, the first $53,255 will be taxed at 14% ($7,455.70), while the portion over $53,255—that is, $26,745—will be taxed at 19% ($5,081.55). Your total provincial tax owed to Revenu Québec would therefore be $12,537.25.

Here are the federal tax rates for 2025.

Taxable Income Bracket	Rate
$57,375 or less	14.5%
Over $57,375 up to $114,750	20.5%
Over $114,750 up to $177,882	26%
Over $177,882 up to $253,414	29%
Over $253,414	33%

Tax credits in Quebec

Everyone likes tax credits—they allow taxpayers to reduce their taxable income and, in turn, lower the amount of tax they owe. To qualify for these credits, you must meet certain eligibility requirements and, of course, file your tax return.

There are two types of tax credits: refundable tax credits, which are paid to you even if you don't owe any income tax; and non-refundable tax credits, which reduce the amount of tax you owe.

Below is an overview of several tax credits available in Quebec:

• Solidarity tax credit

This refundable tax credit—up to $1,256 for a single person and $1,910 for a couple with two children—helps low- and middle-income households. In 2022, 2.8 million individuals received this credit. The amount depends on the taxpayer's annual income. For a single person, for example, it begins to decrease once income reaches $42,325, and it is completely phased out at $63,258. To claim this credit, you must complete Schedule D of your provincial tax return.

• Tax credit for expenses Incurred by a senior to maintain independence

This refundable tax credit is available to individuals aged 70 or older who have incurred expenses to help themselves maintain their independence in their main residence or to pay for a stay in a rehabilitation centre.

• Tax credit for childcare expenses

If you paid for childcare, you may qualify for this refundable tax credit, the amount of which depends on the combined income of both spouses.

• Work premium tax credits

This refundable credit is designed to encourage people to move from social assistance to the workforce. To receive it, you must complete Schedule P and meet specific conditions. For example, in 2025, a single person or a single-parent family must have earned at least $2,400 and no more than $24,475 in employment income to qualify

• Tax credit for medical expenses

If you paid medical expenses exceeding 3% of your net income, you may claim this non-refundable tax credit.

• Tax credit for the purchase of a first home

If you became a first-time homeowner, you may be eligible for this tax credit, worth up to $1,400.

• Deduction for moving expenses

If you moved because of work or education, you can deduct your moving expenses from your annual income.

Wondering which tax credits you're eligible for? No need to guess—TurboTax will guide you toward the credits that match your situation.

File both your federal and provincial tax returns

All Canadian taxpayers are required to file their income tax returns every year. For those who find the process time-consuming or stressful, TurboTax offers reliable help. From importing your tax slips directly from your CRA (Canada Revenue Agency) account to completing both your provincial and federal returns, TurboTax will help you file your taxes with the CRA and Revenu Québec on time and with minimal stress.

Get Started