Quebec Income Tax Calculator
Quebec income tax rates will stay the same for 2024, but the levels of each tax bracket will be increasing. Quebec's personal income tax system is indexed based on the Quebec Consumer Price Index (CPI). The indexation factor for 2024 is 5.08%, or 1.0508. This means that tax brackets and tax credits will increase by 5.08%. The reason for such indexation is to ensure inflation is not pushing you into a higher tax bracket and increasing your tax rate.
Quebec Income Tax Rates
| 2023 | 2024 | Rate |
|---|---|---|
| $0 to $49,275 | $0 to $51,780 | 14% |
| Over $49,275 to $98,540 | Over $51,780 to $103,545 | 19% |
| Over $98,540 to $119,910 | Over $103,545 to $126,000 | 24% |
| More than $119,910 | More than $126,000 | 25.75% |
The basic personal amount will increase to $18,056 in 2024 from $17,183 in 2023.
The History of Quebec Provincial Income Taxes
In recent Quebecois history, Jean Charest (Liberal) became Premier in 2003. Charest introduced modest income tax breaks to residents in 2005. Premier Pauline Marois (Parti Québécois) introduced a new tax bracket for high-income earners in 2013. Additionally, she replaced the flat health tax with a progressive system. Next, Premier Phillippe Couillard (Liberal) announced a tax cut for middle-income earners in 2017, and the tax rate for the first tax bracket was cut by 1% in 2017. The current Premier François Legault (Coalition Avenir Québec) introduced a tax cut of 1% to the first two tax brackets in 2023.
Contribution to the Health Services Fund
Employers make the main contribution to health services fund, but individuals also contribute proportionally to their non-employment income. For 2023, a contribution to the Health Services Fund may be required if your total income minus employment income, dividends, scholarships, and eligible deductions is more than $16,780 and you were a resident of Quebec. Usually, this means that a contribution is required if your business income less any employment income is more than $16,780.
If your eligible income is more than $16,780 but less than $58,350, your contribution owed to the health services fund is 1% of your eligible income, up to a maximum of $150.
If your eligible income is more than $58,350, your contribution owed to the health services fund is 1% of your eligible income plus another $150, up to a maximum of $1,000.
You will need to complete Schedule F when filing your income tax return.
Quebec Contribution to the Health Services Fund
| Eligible Income | Contribution Required | Maximum Contribution |
|---|---|---|
| More than $16,780 Less than $58,350 | 1% | $150 |
| More than $58,350 | 1% + $150 | $1,000 |
Source: Revenu Québec
Quebec Prescription Drug Insurance Plan
You must be covered either by a private group insurance plan, such as by your employer, that covers basic prescription drugs or by the Quebec public prescription drug insurance plan.
If you do not have a private plan and must be covered by the public plan, an annual premium will be paid when you file your tax return. If you have a private plan that does not cover basic prescription drugs, you will still need to pay the public plan premium.
If you are a full-time student between 18 and 25 years old, and you can be covered by a parent's private insurance plan, then you must take the private plan.
If you are over 65 years old and can still be covered by a private plan, you can opt out of the public plan. Otherwise, you will be automatically enrolled into the public plan when you turn 65.
By completing Schedule B of your income tax return, you can claim a refundable tax credit for the Prescription Drug Insurance Plan premiums paid as a medical expense.
To calculate the income used to calculate the premium, you would complete Schedule K of your income tax return.
The income used is your net income, less deductions. For 2023, the base exemption is $18,910 if you are single with no children or $30,640 if you have a spouse with no children.
Income Used to Calculate Prescription Drug Insurance Plan Premiums (2023)
We may call the result of this calculation PDI income. If the PDI income is zero (or negative), then you do not have to pay a premium.
If your PDI income is less than $5,000 and you do not have a spouse, then your insurance premium is 7.47% of that amount. If your PDI income is more than $5,000 but less than $14,671, the insurance premium is 11.22% of the PDI income over $5,000 plus $373.50.
If your PDI income is less than $5,000 and you have a spouse, your premium payable is 3.75% of your PDI income, or 5.62% plus $187.50 if it is more than $5,000 but less than $14,671, with $5,000 taken off of your PDI income.
If your PDI income is more than $14,671, whether or not you have a spouse, your premium payable is $731.00, the maximum payable to the public plan.
Premium Payable to the Quebec Prescription Drug Insurance Plan (2023)
| Without a Spouse | With a Spouse | |||
|---|---|---|---|---|
| If income is less than $5,000 | If PDI income is more than $5,000 but less than $14,671 | If income is less than $5,000 | If income is more than $5,000 but less than $14,671 | |
| Premium Payable | 7.47% PDI Income | 11.22% (PDI Income -$5,000) + $373.50 | 3.75% PDI Income | 5.62% (PDI Income -$5,000) + $187.50 |
| If PDI income is greater than $14,671 | ||||
| Premium Payable | $731.00 | |||
Source: Revenu Québec
Quebec Pension Plan
Workers in Quebec contribute towards the Quebec Pension Plan (QPP), not the Canada Pension Plan (CPP). All employees and self-employed workers over the age of 18 are required to make QPP contributions if their income is more than $3,500. This $3,500 basic exemption amount is the same as the CPP.
QPP contributions are withheld from your pay if you are an employee, and they are known as source deductions in Quebec. QPP contribution rates are higher than CPP rates.
Quebec Pension Plan Contribution Rates
| Year | Maximum Contributory Earnings | Contribution Rate (Employee/Employer) | Combined Contribution Rate |
|---|---|---|---|
| 2024 | $65,000 | 6.4% | 12.8% |
| 2023 | $63,100 | 6.4% | 12.8% |
| 2022 | $61,400 | 6.15% | 12.30% |
| 2021 | $58,100 | 5.9% | 11.8% |
| 2020 | $55,200 | 5.7% | 11.4% |
Source: Revenu Québec
Second Enhanced QPP Contribution (QPP2)
Starting from 2024, in addition to the QPP determined from the above table, those earning over $68,500 will have to make an additional enhanced contribution, commonly called the QPP2. The table below outlines the QPP2 contributions for 2024.
QPP2 Contribution
| Year | Additional Maximum Annual Pensionable Earnings | Contribution Rate (Employee/Employer) | Maximum Contribution (Employee/Employer) | Combined Contribution Rate | Combined Maximum Contribution |
|---|---|---|---|---|---|
| 2024 | $73,200 | 4% | $188 | 8% | $376 |
Source: Retraite Quebec
Quebec Employment Insurance
As a worker in Quebec, you still have to pay EI premiums. In addition to EI, you will also pay Quebec Parental Insurance Plan (QPIP) premiums. Quebec EI premiums are reduced to account for this. For 2024, the maximum insurable earning is $63,200, and the EI Premium rate for employees is 1.32%. The maximum employee contribution is $834.24, and the maximum employer contribution is $1,167.94.
Unlike the federal EI program, where self-employed workers are not required to participate in the EI program, self-employed workers must pay QPIP premiums. QPIP covers maternity, paternity, and parental benefits. You can still enroll in the EI program as a self-employed worker to cover sickness and other benefits.
Quebec Parental Insurance Plan (QPIP) Employee Premium Rates
| Year | Maximum Contributory Earnings | Employee Premium Rate | Maximum Employee Premium |
|---|---|---|---|
| 2024 | $94,000 | 0.494% | $464.36 |
| 2023 | $91,000 | 0.494% | $449.54 |
| 2022 | $88,000 | 0.494% | $434.72 |
| 2021 | $83,500 | 0.494% | $412.49 |
| 2020 | $78,500 | 0.494% | $387.79 |
Quebec Parental Insurance Plan (QPIP) Self-Employed Premium Rates
| Year | Maximum Contributory Earnings | Self-Employed Premium Rate | Maximum Self-Employed Premium |
|---|---|---|---|
| 2024 | $94,000 | 0.878% | $825.32 |
| 2023 | $91,000 | 0.878% | $798.98 |
| 2022 | $88,000 | 0.878% | $772.64 |
| 2021 | $83,500 | 0.878% | $733.13 |
| 2020 | $78,500 | 0.878% | $689.23 |
Source: Quebec Parental Insurance Plan