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Quebec 2017 Budget
Canadian Tax and
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On February 22, 2017, the Finance ministry published Information
Bulletin 2017-4 (pdf) which cancelled the increase in the age of
eligibility for the age amount tax credit. The age of eligibility
remains at age 65, and this change is retroactive to the 2016 taxation
year. 2016 tax returns were being automatically revised for those who
were 65 in 2016 and did not claim the age amount tax credit.
All proposed changes are subject to legislative
Personal Tax Changes
Personal tax credit rate will be
reduced to 16%, the lowest personal income tax rate, from 20%.
As a result, the amounts of all credits are increased so that the tax
reduction will be the same as it was with the 20% rate, except for the
basic personal amount. It will be increased more, so that the
tax reduction is increased by $55 per person.
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
Tax credit for persons living alone, with respect to age and for
retirement income will have 2 changes:
The eligible retirement income component will be raised
(grossed-up) by 25%. For instance, for a person with $1,000
of retirement income, the amount used in the calculation will be
The reduction rate based on household income will increase from
15% to 18.75%.
Health contribution -
eliminated for 2016 for net income up to $134,095, reduced for incomes
over $134,095 and up to $159,095 - refunds will be issued. As
per the October 2016 Economic Update, eliminated for 2017.
The RenoVert tax
credit, a temporary refundable tax
credit for eco-friendly renovations, is extended to March 31, 2018