Quebec Income Tax Calculator
Quebec income tax rates are staying the same for 2021, but the levels of each tax bracket will be increasing.
Quebec's personal income tax system is indexed against the Quebec consumer price index (CPI). The indexation factor for 2021 is 1.26%, or 1.0126. This means that tax brackets and tax credits will increase by 1.26%. For example, the basic personal amount is increasing from $15,532 in 2020 to $15,728 in 2021 ($15,532 x 1.0126).The reason for such indexation is to make sure inflation is not pushing you into a higher tax bracket and increasing your tax rate. For 2020, the indexation factor was 1.72%, or 1.0172.
Quebec Income Tax Rates
| 2020 | 2021 | Rate |
|---|---|---|
| Less than $15,532 | Less than $15,728 | 0% |
| $15,533 to $44,545 | $15,729 to $45,105 | 15% |
| $44,546 to $89,090 | $45,106 to $90,200 | 20% |
| $89,091 to $108,390 | $90,201 to $109,755 | 24% |
| More than $108,391 | More than $109,756 | 25.75% |
Anticipated 2022 Changes
As previously mentioned, Quebec adjusts the tax brackets every year to match inflation. In 2022, Quebec is increasing the provincial tax brackets by 2.64%. This means the basic personal allowance will increase to $16,143 from $15,728. There will be no changes to the tax rate. Additionally, the province has confirmed they will be increasing the personal tax credits by the same factor.
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. Today, François Legault (Coalition Avenir Québec) is Premier and has not significantly changed personal income tax.
Contribution to the Health Services Fund
A contribution to the Health Services Fund may be required if your total income minus employment income, dividends, scholarships, and other deductions is more than $15,170, and you were a resident in Quebec. Usually, this means that a contribution is required if your business income less any employment income is more than $15,170.
If your eligible income is more than $15,170 but less than $52,745, 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 $52,745, 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 $15,170 Less than $52,745 | 1% | $150 |
| More than $52,745 | 1% + $150 | $1,000 |
Source: Revenu Québec
Quebec Prescription Drug Insurance Plan
You are required to be covered either by a private group insurance plan, such as by your employer, that covers basic prescription drugs or be covered by the Quebec public prescription drug insurance plan.
If you do not have a private plan and need to be covered by the public plan, an annual premium will be paid when you file your tax return. If you have a private plan, but it 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 private plan. Otherwise, you will be automatically enrolled into the public plan when you turn 65.
You can claim a refundable tax credit for the Prescription Drug Insurance Plan premiums paid as a medical expense by completing Schedule B of your income tax return.
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. The base exemption is $16,660 if you are single with no children, or $27,010 if you have a spouse with no children.
Income Used to Calculate Prescription Drug Insurance Plan Premiums
If the result of your income calculation is zero, then you do not have to pay a premium.
If your calculated income is less than $5,000 and you do not have a spouse, then your insurance premium is 6.65% of that amount, or 9.99% plus $332.50 if it is greater than $5,000 but less than $14,601, with $5,000 taken off of your calculated income.
If your calculated income is less than $5,000 and you have a spouse, your premium payable is 3.34% of your calculated income, or 5.01% plus $167.00 if it is more than $5,000 but less than $14,601, with $5,000 taken off of your calculated income.
If your calculated income is more than $14,601, whether or not you have a spouse, your premium payable is $648.00, the maximum payable to the public plan.
Premium Payable to the Quebec Prescription Drug Insurance Plan
| Without a Spouse | With a Spouse | |||
|---|---|---|---|---|
| If income is less than $5,000 | If income is more than $5,000 but less than $14,601 | If income is less than $5,000 | If income is more than $5,000 but less than $14,601 | |
| Premium Payable | 6.65% | 9.99% + $332.50 (subtract $5,000 from calculated income) | 3.34% | 5.01% + $167.00 (subtract $5,000 from calculated income) |
| If income is greater than $14,601 | ||||
| Premium Payable | $648.00 | |||
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, 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 |
|---|---|---|---|
| 2023 | $64,900 | 6.4%% | 12.8% |
| 2022 | $61,600 | 6.15% | 12.30% |
| 2021 | $61,600 | 5.9% | 11.8% |
| 2020 | $58,700 | 5.7% | 11.4% |
Source: Revenu Québec
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.
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 |
|---|---|---|---|
| 2023 | $91,000 | 0.494% | $449.54 |
| 2022 | NA | 0.494% | NA |
| 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 |
|---|---|---|---|
| 2023 | $91,000 | 0.878% | $798.98 |
| 2022 | NA | 0.878% | NA |
| 2021 | $83,500 | 0.878% | $733.13 |
| 2020 | $78,500 | 0.878% | $689.23 |
Source: Revenu Québec