Quebec Tax Guide

Quebec Tax Brackets 2024

Filing Two Tax Returns

Federal Return (CRA)

• Filed with Canada Revenue Agency
• Use T1 General form
• Federal credits and deductions
• Due April 30 (June 15 if self-employed)

Quebec Return (Revenu Québec)

• Filed separately with Revenu Québec
• Use TP-1 form
• Quebec-specific credits and deductions
• Same due dates as federal

Quebec Sales Tax (QST)

• Rate: 9.975%
• Combined with 5% GST: 14.975% total
• Separate from GST (not harmonized)
• Some items exempt or zero-rated

QST vs HST

• QST administered by Revenu Québec
• Different rules than HST provinces
• Businesses register separately for GST and QST

Key Quebec Tax Credits

Solidarity Tax Credit

Major benefit for low and middle-income Quebecers:

• Combines three components
• QST credit component
• Housing component (renters or homeowners)
• Northern village component (if applicable)
• Paid monthly (advance)

Eligibility

• Quebec resident on December 31
• Age 18+ (or emancipated minor)
• Must file TP-1 return
• Complete Schedule D

Quebec Family Allowance

• Provincial benefit for families with children
• Up to $2,782 per child under 18
• Based on family income
• Paid quarterly by Retraite Québec

Work Premium

• Similar to Canada Workers Benefit
• For low-income workers
• Up to $1,147 for single person
• Up to $2,036 for couples
• Can receive advance payments

Quebec Tax Shield

• Reduces impact of increased work income
• Protects credits when income rises
• Covers Solidarity Credit, Work Premium, etc.

Quebec-Specific Deductions

Quebec Pension Plan (QPP)

• Quebec doesn't use CPP
• Similar contribution rates and benefits
• Contributions deductible
• QPP pensions taxable

Quebec Parental Insurance Plan (QPIP)

• Separate from federal EI
• Higher benefits than EI maternity/parental
• Premiums deductible
• Benefits taxable

Union and Professional Dues

• Deductible at Quebec level
• Professional order dues
• Union membership fees

Different Federal Treatment

Quebec residents have special federal treatment:

Quebec Abatement

• 16.5% reduction in federal tax
• Compensates for Quebec collecting own tax
• Automatic—no need to claim

Transfer of Credits

• Some federal credits reduced
• Quebec has corresponding provincial credits
• Overall similar benefits

Instalment Requirements

Quebec has different thresholds:

• Federal: $3,000 net tax owing
• Quebec: $1,800 net tax owing
• May need instalments for one, both, or neither
• Separate payments to CRA and Revenu Québec

Property Taxes and Credits

Welcome Tax (Droits de mutation)

Quebec's land transfer tax:

• 0.5% on first $58,900
• 1% on $58,900 to $294,600
• 1.5% on $294,600 to $500,000
• 2% on amounts over $500,000
• Montreal adds additional 0.5-1.5%

Property Tax Credit

• Part of Solidarity Tax Credit
• For homeowners and renters
• Based on municipal taxes or rent paid

Childcare in Quebec

Subsidized Daycare ($8.70/day)

• Low-cost regulated childcare
• Waiting lists common
• Not eligible for federal childcare deduction

Non-Subsidized Childcare

• Quebec refundable tax credit available
• Up to 78% of expenses for lowest incomes
• Also claim federal deduction

Quebec Health Contribution

• Previously required
• Eliminated as of 2019
• No longer payable

Business Taxes in Quebec

Corporate Income Tax

• General rate: 11.5%
• Small business rate: 3.2%
• Combined with federal: Higher than most provinces

QST Registration

• Separate from GST registration
• Required if Quebec sales over $30,000
• Collect and remit QST separately

Tax Planning for Quebecers

Maximize Both Returns

• Some deductions only on Quebec return
• Some only on federal return
• Review both carefully

RRSP Strategy

• Higher provincial rates = more RRSP value
• Deduction applies to both returns
• Consider timing contributions strategically

Solidarity Credit Optimization

• File Schedule D every year
• Update housing information
• Report changes to Revenu Québec