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The Economic Plan Update announced that the tax rate for
the lowest tax bracket would be reduced from 16% to 15%, retroactively to
January 1, 2017. The Quebec 2017 and 2018
Tax Rate Tables have been revised to reflect this change.
All proposed changes are subject to legislative
Personal Tax Changes
Personal tax credit rate will be
reduced, starting with the 2017 taxation year, to 15% from 16%.
As a result, the amounts of a few tax credits are increased so that the tax
reduction will be the same as it was with the 16% rate. The rate
was previously reduced by the March 2017 budget, from 20% to 16%, with
a corresponding increase in some tax credit amounts. The 2017
and 2018 tables of marginal tax rates have been revised to reflect
Some tax credits will still use the 20% rate:
eligible medical expenses
student loan interest
the first $200 of gifts/donations
eligible expenses to obtain medical care not provided in the
region where an individual lives
The alternative minimum tax calculation will use the rate of 15%
instead of 16%, starting with the 2017 taxation year.
The government is shortening the period during which social
assistance must have been received in order to be eligible for the
supplement to the work premium.
Workers whose contributions to the Quebec Pension Plan (QPP)
increase in 2019 because of upcoming enhancements to the plan will be
able to deduct these additional amounts from their income.
Current QPP contributions result in a tax credit at the lowest tax
rate, not a deduction from income.
Individuals eligible to receive the Solidarity
Tax Credit, the Fiscal
Shield or the Work Premium will no longer have to apply for these
benefits by ticking a box on the tax return or by completing a
schedule of the tax return - they will just have to file their tax
returns to receive the benefits. These amendments will be
applicable, in the case of the basic amount and the amount for a
spouse under the QST component of the solidarity tax credit, in
respect of the payment period beginning on July 1, 2018, and in the
case of the work premium and the fiscal shield, as of the 2018
taxation year. These changes do not apply to the rules governing
advance payments of the work premium.
Other Fiscal Measures
- A new annual universal supplement of $100 per school-aged child will be
granted as of 2017 for the purchase of school supplies. This will be
included with the refundable
tax credit for child assistance (RTCCA), and will be adjusted annually
starting in 2019.