Ads
keep this website free for you. TaxTips.ca does
not research or endorse any product or service appearing in
ads on this site.
Before making a major financial decision you
should consult a qualified professional.
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
approval.
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
these changes.
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 experienced
worker tax credit will use the lower 15% rate instead of 16%, and
the 94% weighting factor will be removed.
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.
Facebook
| Twitter
| See What’s New, stay
connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
Please see our legal
disclaimer regarding the use of information on our site, and our Privacy
Policy regarding information that may be collected from visitors to our
site.
