Income and taxation

This section contains complete information on income and taxation in the region of Quebec, where the average annual income for a family is $71,500.

Unbeatable quality of life

Quebec City and the surrounding region offer unbeatable quality of vie. Prices for day-to-day amenities are very competitive, while tuition fees are affordable and healthcare is free of charge. Taking into account the fact that the median annual after-tax income for a couple is $63,100—one of the highest levels in Canada—Quebec City is an ideal place to live!

Pay periods

Workers in Quebec are not necessarily paid on a monthly basis. Most of the time, employees are paid every two weeks (26 times per year). Some workers are even paid weekly.

Median annual after-tax income for couples living in Canadian census metropolitan areas (CMA) (2011)

City/region CA$
Ottawa-gatineau 83,100
Quebec City 63,100
Toronto 81,500
Vancouver 80,300
Canada 66,500
Montréal 62,300

* Source : Statistics Canada, CANSIM table 202-0605

Median after-tax income by economic family type (2011)

Type of household After-tax income (CA$)
All family units 52,600
Two people or more 71,500
Couples without children (two incomes) 67,200
Two-parent families (two incomes) 90,400
Unattached individuals 28,400

* Source : Statistics Canada, CANSIM table 202-0605

Taxation

In Quebec, you are required to file two tax returns every year: one for the federal government and one for the provincial government.

Taxpayers are required to report their income and pay taxes in the province in which they reside on December 31 of the tax year in question. Income tax is calculated based on progressive marginal rates. The levels of taxation at the federal and provincial levels are cumulative. Income taxes are deducted at source. Employers are responsible for deducting the correct amounts according to the tax regulations.

Federal income tax rates (2016)

Rate Income level
15 % Less than $45,282
20,5 % $45,282 - $ 90,563
26 % $90,563 - $140,388
29 % $140,388 and $ 200.000
33% More than $ 200.000

Provincial income tax rates (2012)

Rate Income level
16 % Less than $42,390
20 % $42,390 - $84,780
24 % $84,790 $ 103.150
25,75 % More than $ 103.150

There are other payroll deductions as well:

Federal level:

  • Employment insurance: rate of 1.52%

Provincial level:

  • Quebec pension plan (RRQ): rate of 5,1%
  • Quebec parental insurance plan (RQAP): rate of 0.559%