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Quebec Federal Tax Abatement

Income Tax Act s. 120(2), Federal-Provincial Fiscal Arrangements Act R.S.C., 1985, C. F-8

Under an agreement between the federal government and Quebec, most Quebec taxpayers get a federal tax abatement (reduction) of 16.5% of either basic federal tax (line 57 on Schedule 1) or minimum tax, whichever is greater.  The tables of marginal tax rates for Quebec include the reduction for the abatement.

For more information, see Line 440 - Refundable Quebec abatement, in the Canada Revenue Agency (CRA) General Income Tax and Benefit Guide in the General Income Tax and Benefit Package.

The federal tax abatement also reduces, in effect, all federal tax credits for Quebec taxpayers, because the tax credits are deducted from federal tax before the abatement is calculated.

For information on the reasoning behind the tax abatement, see the Department of Finance Quebec Abatement page.

Revised: September 20, 2024

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