In Canada, we use a progressive tax system. The rate of tax increases as the amount of income increases. There are different levels or federal and provincial tax brackets which have different rates of tax.
As a resident of Canada, you pay both federal and provincial taxes. Provincial taxes are based on your province of residence as of December 31. For example, if you are filing 2024 taxes, and you lived in Alberta part of the year, and then moved to Québec in October, because you were living in Québec on December 31 you will be subject to Québec income tax and Québec tax credits in addition to the federal taxes everyone in Canada pays.
Unlike in the rest of Canada where the Canada Revenue Agency (CRA) is the government organization in charge of taxation in Canada, and takes care of federal and provincial taxes, the province of Québec has an arrangement with the federal government to administer provincial taxes on behalf of residents of the province through Revenu Québec.
Québec residents file their provincial tax return with Revenu Québec and file their federal tax return with the CRA.
Information provided here is for general information only, and is not intended as financial advice. Your personal situation is unique, and you should always consult a professional financial expert.
Québec tax brackets
Income tax in Canada is based on your taxable income. Your taxable income is your total gross income from all sources less eligible deductions and credits. Because we use a progressive tax system, the more money you make, the higher the rate of tax you will pay.
Québec 2024 tax rates
The tax brackets for Québec for 2024 are:
**2024 Québec income tax brackets ** | 2024 Québec income tax rate |
|---|---|
| $51,780 or less | 14% |
| More than $51,780 but not more than $103,545 | 19% |
| More than $103,545 but not more than $126,000 | 24% |
| More than $126,000 | 25.75% |
Federal tax bracket rates for the 2024 tax year
The following are the federal tax rates for tax year 2024 according to the CRA:
2024 federal income tax brackets | 2024 federal income tax rates |
|---|---|
| $55,867 or less | 15% |
| $55,867.01 to $111,733 | 20.5% |
| $111,733.01 to $173,205 | 26% |
| $173,205.01 to $246,752 | 29% |
| More than $246,752 | 33% |
How to calculate income tax in Québec
Your marginal tax rate is the total amount of federal and provincial taxes you owe. It’s the combined amount you will have to pay. For example, if your taxable income after deductions and exemptions was $42,000, your federal tax owing is 15%, and your Québec provincial amount owing is 14%, your marginal tax rate (15% + 14%) is 29%.
If you want to get a rough estimate of how much income tax you owe on your taxable income, first calculate your federal income tax, and then calculate your provincial tax, and add the amounts together.
So if your taxable income was $42,000 and you didn’t have any deductions or credits, your calculation would be:
$42,000 x 15% = $6,300 federal
$42,000 x 14% = $5,880 Québec
Total income tax on taxable income: $6,300 + $5,580 = $12,180 total combined federal and provincial taxes
NOTE: In a progressive tax system, your income tax payable is cumulative. Depending on what tax bracket your taxable income falls in, you could be paying multiple rates of tax.
Let’s say your income is $55,000. You will still pay the same federal tax of 15%, since you are in the first tax bracket. That works out to $8,250.
For the Québec portion, you will pay 14% on the first $51,780 = $7,249.20.
The remaining $3,220 ($55,000-$51,780) will be taxed at 19% = $611.80.
Total Québec tax owing: $7,249.20 + $611.80 = $7,861
Total taxes owing (federal $8,250 + Québec $7,861) = $16,111
How to reduce your taxes in Québec
No one likes to pay taxes, and there are some ways to reduce the amount of taxes you pay. If you live in Québec, you could be eligible for some of these deductions, credits, or benefits.
Deductions
Deductions you are eligible to claim will reduce your taxable income, lowering the amount of income that income tax will be calculated on. The CRA provides detailed information on both federal and province-specific deductions. Some common deductions include Registered Pension Plan/RRSP contributions, union dues, child care expenses, and employment expenses.
Tax credits
There are nonrefundable tax credits that will reduce the amount of tax you have to pay, but you have to owe taxes to be eligible to claim them. In other words, you need to have earned some kind of income. The thing with nonrefundable tax credits is you can only claim enough to reduce your taxes to zero, but you don’t get the excess as a refund. So if you owe $3,000 in taxes, and you have $4,500 in nonrefundable tax credits, you can claim $3,000, but you forfeit the remaining $1,500.
The most common nonrefundable tax credit is the Basic Personal Amount (BPA). Every taxpayer in Canada is eligible to claim the BPA of up to $15,000, which reduces your taxable income. If your taxable income is in the 29% tax bracket, your BPA is the amount you are entitled to, which is pro-rated and will be calculated on the federal worksheet. If your BPA is in the 33% tax bracket, you are entitled to $13,520.
In Québec, you are also eligible to claim a BPA of $17,183.
There are many other tax credits available, including credits for taxpayers who are age 65 or older, credits for those who have been classified as disabled, for medical expenses, or for charitable or political donations.
In some circumstances, such as tax credits for tuition, student loan interest, and donations, if you’re not able to use them in the current tax year, they can be carried forward for use in future years.
In Québec, in addition to the federal nonrefundable tax credits, you can claim a tax credit for tuition at a post-secondary education institution, interest on student loans, if you do volunteer respite services, or if you are a caregiver or an elite athlete.
There are also refundable tax credits such as the Canada Workers Benefit, Canada training credit, and the refundable medical expense supplement, which you would not lose if your taxes are already reduced to zero. Using our earlier example, if you had $4,500 in refundable credits but only owe $3,000 tax, the excess $1,500 would be given to you as part of your refund.
This isn’t a comprehensive list and there may be other tax credits you are eligible for. When in doubt, it’s always a good idea to check with a financial expert.
If your income is less than $15,000, you shouldn’t have to pay any income tax. You should still file your taxes, because all kinds of federal and provincial programs, such as the GST/HST credit and the Canada Child Benefit, are calculated based on your income reported on your income tax return. You must file your income tax return to continue receiving these benefits.
