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The rates, thresholds and amounts that apply to source deductions and contributions for 2017 are given below. 

Indexation for 2017 

Every year, the personal income tax system is automatically indexed. The indexation rate for 2017 is 0.74%. 

Income tax rates and income thresholds

For 2017, the income tax rates applicable to the taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed. Specifically:

• the 16% rate applies to taxable income of $42,705 or less (previously $42,390);
• the 20% rate applies to taxable income of more than $42,705, but not more than $85,405 (previously $84,780);
• the 24% rate applies to taxable income of more than $85,405, but not more than $103,915 (previously $103,150);
• the 25.75% rate applies to taxable income of more than $103,915.

Source Deductions Return (form TP-1015.3-V)

The Source Deductions Return (form TP-1015.3-V) has been revised for 2017 to take into account the annual indexation of the amounts appearing on it.

The indexed amounts used to determine deduction codes for 2017 are shown in the table below. The figures for 2016 are provided for information purposes.

Amounts used to calculate the source deductions of income tax
2017 2016 Basic amount $11,635 $11,550 Amount transferred from one spouse to the other $11,635 $11,550 Amount for other dependants who are 18 or older $3,125 $3,100 Amount for a child under 18 enrolled in post-secondary studies $2,145 $2,130 Additional amount for a person living alone (single-parent family) $1,685 $1,675 Amount for a severe and prolonged impairment in mental or physical functions $2,645 $2,625 Amount for a person living alone $1,365 $1,355 Age amount $2,505 $2,485 Amount for retirement income $2,225 $2,210 Reduction threshold used to calculate the net family income (This income is used to calculate the age amount, the amount for a person living alone and the amount for retirement income.)  $33,755 $33,505 Indexation rate for 2017 0.74%

Gratuities and retroactive pay 

The threshold to determine the method to be used to calculate the source deduction of income tax from gratuities and retroactive pay has been increased from $14,450 to $14,550 for 2017.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,130 to $1,140 for 2017.

Emergency services volunteer 

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,130 to $1,140 for 2017.

Québec Pension Plan Contributions 

For 2017, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $54,900 to $55,300 and the QPP contribution rate has been increased from 10.65% to 10.80%, which corresponds to a contribution rate of 5.40% for the employee and 5.40% for the employer. The maximum annual contribution to be withheld for any employee has therefore been increased from $2,737.05 to $2,797.20. 

Québec Parental Insurance Plan Premiums 

For 2017, the maximum insurable earnings for the purpose of the Québec Parental Insurance Plan (QPIP) have been increased from $71,500 to $72,500. The employee premium rate is 0.548% and the employer premium rate is 0.767%. As a result, the maximum annual employee premium is $397.30 (instead of $391.82) and the maximum annual employer premium is $556.08 (instead of $548.41$). 

Contribution related to labour standards 

Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.

Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards. 

On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, you will no longer be required to withhold the health contribution on the remuneration you pay to an employee or a beneficiary. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) and the WinRAS application for 2017 take this change into account.

On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, you will no longer be required to withhold the health contribution on the remuneration you pay to an employee or a beneficiary. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) and the WinRAS application for 2017 take this change into account.

On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, you will no longer be required to withhold the health contribution on the remuneration you pay to an employee or a beneficiary. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) and the WinRAS application for 2017 take this change into account.

On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, you will no longer be required to withhold the health contribution on the remuneration you pay to an employee or a beneficiary. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) and the WinRAS application for 2017 take this change into account.

On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, you will no longer be required to withhold the health contribution on the remuneration you pay to an employee or a beneficiary. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) and the WinRAS application for 2017 take this change into account.

Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.

Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards.

Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.

Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards.

Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.

Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards.

Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.

Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards. 

Starting in 2017, the health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million will be gradually reduced over a period of five years.

For 2017, if you are an employer in the primary and manufacturing sectors and 50% of your total payroll is related to activities grouped under codes 11, 21 and 31 to 33 of the North American Industry Classification System (NAICS) (see Statistics Canada's website for a description of each code), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.55%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 0.8725 + 0.6775 × Swhere S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.5%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 2.06 + 0.44 × Swhere  S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

Starting in 2017, the health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million will be gradually reduced over a period of five years.

For 2017, if you are an employer in the primary and manufacturing sectors and 50% of your total payroll is related to activities grouped under codes 11, 21 and 31 to 33 of the North American Industry Classification System (NAICS) (see Statistics Canada's website for a description of each code), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.55%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 0.8725 + 0.6775 × Swhere S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.5%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 2.06 + 0.44 × Swhere  S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

Starting in 2017, the health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million will be gradually reduced over a period of five years.

For 2017, if you are an employer in the primary and manufacturing sectors and 50% of your total payroll is related to activities grouped under codes 11, 21 and 31 to 33 of the North American Industry Classification System (NAICS) (see Statistics Canada's website for a description of each code), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.55%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 0.8725 + 0.6775 × Swhere S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.5%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 2.06 + 0.44 × Swhere  S = total payroll $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

Starting in 2017, the health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million will be gradually reduced over a period of five years.

For 2017, if you are an employer in the primary and manufacturing sectors and 50% of your total payroll is related to activities grouped under codes 11, 21 and 31 to 33 of the North American Industry Classification System (NAICS) (see Statistics Canada's website for a description of each code), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.55%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 0.8725 + 0.6775 × S where S = total payroll  $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.5%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula:

W (%) = 2.06 + 0.44 × S where  S = total payroll  $ 1,000,000

• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

Effective November 1, 2016, the tax on lodging applies to:

• the rental of an accommodation unit in an educational establishment that is also considered to be a sleeping-accommodation establishment; and
• the rental of a ready-to-camp unit. 

In addition, the rate of the tax on lodging is now 3.5% of the price of an overnight stay in all tourism regions where the tax applies (the tax is $3.50 per overnight stay if the tax is billed to a person that acquires the accommodation unit for purposes of resupply to another party).

For more information, see Tax on Lodging.

Effective November 1, 2016, the tax on lodging applies to:

• the rental of an accommodation unit in an educational establishment that is also considered to be a sleeping-accommodation establishment; and
• the rental of a ready-to-camp unit. 

In addition, the rate of the tax on lodging is now 3.5% of the price of an overnight stay in all tourism regions where the tax applies (the tax is $3.50 per overnight stay if the tax is billed to a person that acquires the accommodation unit for purposes of resupply to another party).

For more information, see Tax on Lodging.

Effective November 1, 2016, the tax on lodging applies to:

• the rental of an accommodation unit in an educational establishment that is also considered to be a sleeping-accommodation establishment; and
• the rental of a ready-to-camp unit. 

In addition, the rate of the tax on lodging is now 3.5% of the price of an overnight stay in all tourism regions where the tax applies (the tax is $3.50 per overnight stay if the tax is billed to a person that acquires the accommodation unit for purposes of resupply to another party).

For more information, see Tax on Lodging.

Effective November 1, 2016, the tax on lodging applies to: 

• the rental of an accommodation unit in an educational establishment that is also considered to be a sleeping-accommodation establishment; and
• the rental of a ready-to-camp unit. 

In addition, the rate of the tax on lodging is now 3.5% of the price of an overnight stay in all tourism regions where the tax applies (the tax is $3.50 per overnight stay if the tax is billed to a person that acquires the accommodation unit for purposes of resupply to another party). 

For more information, see Tax on Lodging.

The RL-2 and RL-25 summaries have been eliminated. Therefore, you must no longer file the RL-2 summary (form RL-2.S) when filing RL-2 slips, or the RL-25 summary (form RL-25.S) when filing RL-25 slips.

This also applies to RL-2 and RL-25 summaries related to a previous year.

Note

Because the RL-25 summary has been eliminated, we have created a Guide to Filing the RL-25 Slip (document RL-25.G-V). The guide contains all the instructions and information that were in the RL-25 summary.

The RL-2 and RL-25 summaries have been eliminated. Therefore, you must no longer file the RL-2 summary (form RL-2.S) when filing RL-2 slips, or the RL-25 summary (form RL-25.S) when filing RL-25 slips.

This also applies to RL-2 and RL-25 summaries related to a previous year.

Note

Because the RL-25 summary has been eliminated, we have created a Guide to Filing the RL-25 Slip (document RL-25.G-V). The guide contains all the instructions and information that were in the RL-25 summary.