Québec Income Tax Calculator 2021.

Québec-image
Québec
Estimate your 2020 & 2021 total income taxeswith only a few details about your income
Tax Year
Your Employment Status
Employment Income
Other Income
Capital Gains
Eligible Dividends
Ineligible Dividends

Results

Total Income
$50,000
Total Tax
$13,545.89
Income Tax
$9,965.39
EI Premiums
$590
QPP Contribution
$2,743.5
QPIP
$247
After Tax Income
$36,454.11
Average Tax Rate
19.93%
Marginal Tax Rate
37.12%
Facts

Interesting Facts

  • Quebec is the only province that contributes to a provincial pension plan instead of the Canadian Pension Plan (CPP).
  • Quebec has some of the highest tax rates in North America, making it an expensive province for middle to high-income earners.
  • Before taxes, an employment income of $250,000 is 5x more than an income of $50,000. However, the after-tax income is only 3.89x as much.
  • In exchange for the high taxes, Quebec residents enjoy cheap tuition and free daycare.
Canada Federal and Quebec Tax Brackets 2021
Your taxable income places you in the following tax brackets.
Federal tax bracketFederal tax rates
Less than $13,808 0%
$13,809 to $49,02012.53%
$49,021 to $98,04017.12%
$98,041 to $151,97821.71%
$151,979 to $216,51124.4%
More than $216,512 27.56%
Quebec tax bracketQuebec tax rates
Less than $15,728 0%
$15,729 to $45,10515%
$45,106 to $90,20020%
$90,201 to $109,75524%
More than $109,756 25.75%

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

20202021Rate
Less than $15,532Less than $15,7280%
$15,533 to $44,545$15,729 to $45,10515%
$44,546 to $89,090$45,106 to $90,20020%
$89,091 to $108,390$90,201 to $109,75524%
More than $108,391More than $109,75625.75%

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 IncomeContribution RequiredMaximum Contribution
More than $15,170

Less than $52,745

1%$150
More than $52,7451% + $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

Quebec-income-prescription

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 SpouseWith a Spouse
If income is less than $5,000If income is more than $5,000 but less than $14,601If income is less than $5,000If income is more than $5,000 but less than $14,601
Premium Payable6.65%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

YearMaximum Contributory EarningsContribution Rate (Employee/Employer)Combined Contribution Rate
2022$61,6006.15%12.3%
2021$61,6005.9%11.8%
2020$58,7005.7%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

YearMaximum Contributory EarningsEmployee Premium RateMaximum Employee Premium
2022NA0.494%NA
2021$83,5000.494%$412.49
2020$78,5000.494%$387.79

Quebec Parental Insurance Plan (QPIP) Self-Employed Premium Rates

YearMaximum Contributory EarningsSelf-Employed Premium RateMaximum Self-Employed Premium
2022NA0.878%NA
2021$83,5000.878%$733.13
2020$78,5000.878%$689.23

Source: Revenu Québec