Quebec -> Dividend tax credit
Quebec Dividend Tax Credits
QC Taxation Act s. 767, s. 497
Quebec Eligible Dividend Tax Credit
The Quebec dividend tax credit rate is defined as a percentage of the grossed-up (taxable) dividend. The Quebec Taxation Act s. 1 defines eligible dividends using the definition from the federal Income Tax Act. So an eligible dividend for federal purposes is also an eligible dividend for Quebec purposes.
The Quebec 2018 Budget announced rate changes for the eligible dividend tax credit, effective March 28, 2018. The eligible dividend tax credit rates are:
| Quebec Dividend Tax Credit Rate for Eligible Dividends | |||
| Timing | Gross-up % |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2020+ | 38% | 11.70% | 16.146% |
| 2019 | 38% | 11.78% | 16.26% |
| Mar 28 to Dec 31/18 | 38% | 11.86% | 16.37% |
| 2012 to Mar 27/18 | 38% | 11.9% | 16.422% |
| 2011 | 41% | 11.9% | 16.779% |
| 2010 | 44% | 11.9% | 17.136% |
| after Mar 23, 2006 to Dec 31, 2009 |
45% | 11.9% | 17.255% |
| before Mar 24, 2006 | 45% | 10.83% | 13.5375% |
Quebec Non-Eligible Dividend Tax Credit
The Quebec Taxation Act s. 1 defines eligible dividends using the definition from the federal Income Tax Act. Non-eligible, or ordinary dividends are dividends from corporations resident in Canada other than eligible dividends. A non-eligible (ordinary, or regular) dividend for federal purposes is also a non-eligible dividend for Quebec purposes.
Although Quebec is not required to use the federal gross-up rates, they normally follow the federal legislation for this. Their dividend tax credit rate is defined as a percentage of the grossed-up (taxable) dividend.
The Quebec 2021 Budget announced rate changes for non-eligible dividends. The rates are:
| Quebec Dividend Tax Credit Rate for Non-Eligible Dividends | |||
| Timing | Gross-up Rate |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2022+ | 15% | 3.42% | 3.93% |
| 2021 | 15% | 4.01% | 4.61% |
| 2020 | 15% | 4.77% | 5.49% |
| 2019 | 15% | 5.55% | 6.38% |
| Mar 28 to Dec 31/18 | 16% | 6.28% | 7.28% |
| Jan 1 to Mar 27/18 | 16% | 7.05% | 8.18% |
| 2016/2017 | 17% | 7.05% | 8.25% |
| 2014/2015 | 18% | 7.05% | 8.32% |
| after Mar 23, 2006 to Dec 31, 2013 |
25% | 8% | 10% |
| before Mar 24, 2006 | 25% | 10.83% | 13.5375% |
The Quebec 2021 Budget announced a decrease in the small business tax rate, to 3.2% effective for a corporation's taxation years ending after March 25, 2021, the day of the budget speech. See Corporate Income Tax Rates.
For current tax brackets and complete rates see QC marginal tax rates table.
Revised: October 26, 2023