To help you with the financial aspects of your relocation, here are a few facts and figures about salaries and income tax in Canada in general, and in Quebec in particular.
In Quebec, salaries are generally discussed as gross yearly salaries before taxes. They are paid bi-monthly, every other Thursday. It is recommended that you remove from 30 percent to 40 per cent from the agreed upon figure in order to get a more accurate idea of what you will earn, social contributions and income tax deducted.
Income tax in Quebec – brackets:
The percentage of income tax you pay depends on how much you earn per year. There are two levels of taxation, the federal level (Canada) and the provincial (Quebec).
The Government of Canada will tax you as follows:
- 15 % (of your salary) if you earn a salary under $43,500,
- 22% if your salary is over $43,500 and under $87,000,
- 26% if your salary is over $87,000 and under $134,000,
- and 29% if your salary is over $145,000.
Income tax in Quebec is calculated like this:
- 15% if you earn under $41,000,
- 20% if your salary is between $41,000 and $82,000,
- 24% if your salary is between $82,000 and $100,000,
- and if you earn more than $100,000 the rate is about 25.75 %.
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How to pay your income tax in Quebec
- The first way, and the easiest one, is to apply for a direct transfer from your salary to revenue agencies. This is what the great majority of taxpayers do. You can decide how much money is deducted from your salary, so that you don’t have to worry about saving to provision for income tax.
- The second way to pay your income tax is to arrange for an annual payment, taking into account all your yearly income and applying the appropriate percentage to calculate your income tax.
- The third way to pay your income tax is to pay when filing your tax return documents.
- The fourth way to pay your income tax is to wait for the revenue agencies to send you your yearly tax slip after filing your tax return.
The income tax return
You have to fill in your income tax returns, one for Quebec and one for Canada, each year before April 30th. Most people get professional help to take care of these. It is especially recommended for newcomers who may have particular situations and double taxation issues with their country of origin. Full members of Settle-in.com can access our addresses contact info.
If you paid too much income tax during the year from your direct transfers, you will be refunded by the revenue agencies. On the contrary, if you didn’t pay enough, you will have to pay the remaining amount before the deadline, otherwise you may have penalties.