When you relocate to the province, you may be interested in learning about the income tax in Quebec, and Canada. How will you be affected? How will income tax be beneficial?
In Quebec and Canada, income taxes go towards paying for road construction, public safety, public education, and armed forces, amongst other work important for a functioning and civil society. Keep in mind that income tax in Canada, and income tax in Quebec can change at anytime.
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Income tax in Canada
The federal government’s income tax in Canada, provides the majority of the revenue each year. The different ways in which personal income tax in Canada is collected are:
- Deduction at the source (tax taken from a person pay and sent to the CRA directly),
- Installment payments (payment of a persons estimated yearly taxes throughout the year)
- Payment on filing (tax payments that are made with a persons tax return)
- Arrears payments (tax payments that a person makes after their tax return is filed)
Federally, you will be taxed 15 per cent if your salary represent less than $43,500, 22 per cent if your salary is between $43,500 and $87,000, 26 percent if your salary is between $87,000 and $134,000, and 29 per cent if you earn more than $135,000.
For more information on income tax in Canada, visit Canada Revenue Agency.
Income tax in Quebec
Income tax in Quebec is different from any of the other Canadian province, and it is, for the most part, much higher. It’s good to know that there are tax filing deadlines, and a penalty will be applied if your payment is late or unpaid by the deadline. In Quebec, if you earn under $41,000 you will be taxed 15 per cent by the province. If you earn between $41,000 and $82,000 tax is 20 per cent of your income. If you more than $82,000 but less than $100,000 the tax rate is 24 per cent, and if you earn more than $100,000 the tax rate is 25.75 per cent.
For more information on income tax in Quebec, visit Revenu Quebec’s website.
If you relocating to Quebec, you’ll need to be informed about working and managing your taxes here. Sign up for Settle-in.com and get full access to “The Guide.” Read the “Working” and “Finances” chapters for more information on these topics.