Quebec -> Quebec Progressive Health Contribution

Quebec Progressive Health Contribution 
   - eliminated as of Jan 1, 2017

An Act respecting the Regie de l'assurance maladie du Quebec Division I.2 s. 37.16

Since January 1, 2013, a progressive health contribution was in effect in Quebec, based on individual net income.  The thresholds for the contribution were indexed annually in the same manner as Quebec tax brackets, and rounded to the nearest $5.

The Quebec 2017 Budget accelerated the elimination of the health contribution further, so that it was eliminated in 2016 for those with net income of $134,095 or less, and was reduced for those with net income over $134,095 and up to $159,095.  As per the October 2016 Economic Update, the Health Contribution was eliminated effective January 1, 2017.

The Quebec 2016 Budget accelerated the elimination of the health contribution, so that it was reduced further than planned for 2016 and 2017, and eliminated after 2017.  See the table below, which has been revised for the October 2016 Economic Update announcement.  The 2016 column has been further revised for the Quebec 2017 Budget.

Quebec Health Contribution 2016/2017
Individual Net Income Contribution Amount 2016 Contribution Amount 2017
first $18,570 no premium no premium
over $18,570 up to $41,265 (income - $18,570) x 5%,
to a maximum of $50
Revised to NO PREMIUM
no premium
over $41,265 up to $134,095 $50 + (income - $41,265) x 5%,
to a maximum of $175
Revised to NO PREMIUM
no premium - was going to be:
(income - $41,560) x 5%,
to maximum of $70
over $134,095 up to 159,095 $175 + (income - $134,095) x 4%,
to a maximum of $1,000
Revised to
(income - $134,095) x 4%,
to a maximum of $1,000
no premium - was going to be:
$70 + (income - $135,060) x 4%,
to maximum of $800
over $159,095 $1,000 no premium - was going to be:
$70 + (income - $135,060) x 4%,
to maximum of $800

The health contribution for 2015 was as per the following table, and was planned by the Quebec 2015 budget to also apply to 2016.

Quebec Health Contribution 2015
Individual Net Income Contribution Amount 2015
first $18,370 no premium
over $18,370 up to $20,370 (income - $18,370) x 5%
over $20,370 up to $40,820 $100
over $40,820 up to $42,820 $100 + (income - $40,820) x 5%
over $42,820 up to $132,650 $200
over $132,650 up to $152,650 $200 + (income - $132,650) x 4%
over $152,650 $1,000

The Quebec 2013 budget information indicated that people who are exempt from the health contribution under the 2012 and earlier system would not be required to pay the new contribution.  This exempts taxpayers in the following situations:

The exemption levels are as shown in the table below.  The exemption threshold is compared to family net income as per line 275 of the Quebec tax return.  If family net income does not exceed the exemption threshold below, then there is no health contribution payable.  The thresholds below are not indexed.

Type of Household Exemption
Threshold
1 adult, no children $18,000
1 adult, 1 child 23,880
1 adult,  2 or more children 27,055
2 adults, no children 23,880
2 adults, 1 child 27,055
2 adults, 2 or more children 29,985