Revenu Québec Infos

You are not required to withhold income tax if you pay only directors' fees to a director who is not resident in Canada and who does not attend meetings in Québec or perform any duties there—for example, a director who is outside Canada and attends a meeting in Québec by teleconferencing (conference call, video conferencing, etc.).

However, you are required to withhold income tax if the director attends meetings in Québec or performs any duties there. The tax is withheld from the value of the directors' fees paid for the portion of the services performed for you by the director in Québec that is attributable to the director's presence at meetings in Québec or the director's performance of any duties there.

For more information, refer to Directors' Fees.

You are not required to withhold income tax if you pay only directors' fees to a director who is not resident in Canada and who does not attend meetings in Québec or perform any duties there—for example, a director who is outside Canada and attends a meeting in Québec by teleconferencing (conference call, video conferencing, etc.).

However, you are required to withhold income tax if the director attends meetings in Québec or performs any duties there. The tax is withheld from the value of the directors' fees paid for the portion of the services performed for you by the director in Québec that is attributable to the director's presence at meetings in Québec or the director's performance of any duties there.

For more information, refer to Directors' Fees.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

20182017Basic amount$15,012$11,635Amount transferred from one spouse to the other$15,012$11,635Amount for other dependants who are 18 or older$4,202$3,125Amount for a child under 18 enrolled in post-secondary studies (per term)$2,884$2,145Additional amount for a person living alone (single-parent family)$2,124$1,685Amount for a severe and prolonged impairment in mental or physical functions$3,334$2,645Amount for a person living alone$1,721$1,365Age amount$3,158$2,505Amount for retirement income$2,805$2,225Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older$34,030$33,755Gratuities 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 $14,550 to $15,012 for 2018.

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018.

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year.

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60.

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

20182017Basic amount$15,012$11,635Amount transferred from one spouse to the other$15,012$11,635Amount for other dependants who are 18 or older$4,202$3,125Amount for a child under 18 enrolled in post-secondary studies (per term)$2,884$2,145Additional amount for a person living alone (single-parent family)$2,124$1,685Amount for a severe and prolonged impairment in mental or physical functions$3,334$2,645Amount for a person living alone$1,721$1,365Age amount$3,158$2,505Amount for retirement income$2,805$2,225Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older$34,030$33,755Gratuities 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 $14,550 to $15,012 for 2018.

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018.

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year.

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60.

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

20182017Basic amount$15,012$11,635Amount transferred from one spouse to the other$15,012$11,635Amount for other dependants who are 18 or older$4,202$3,125Amount for a child under 18 enrolled in post-secondary studies (per term)$2,884$2,145Additional amount for a person living alone (single-parent family)$2,124$1,685Amount for a severe and prolonged impairment in mental or physical functions$3,334$2,645Amount for a person living alone$1,721$1,365Age amount$3,158$2,505Amount for retirement income$2,805$2,225Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older$34,030$33,755Gratuities 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 $14,550 to $15,012 for 2018.

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018.

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year.

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60.

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

20182017Basic amount$15,012$11,635Amount transferred from one spouse to the other$15,012$11,635Amount for other dependants who are 18 or older$4,202$3,125Amount for a child under 18 enrolled in post-secondary studies (per term)$2,884$2,145Additional amount for a person living alone (single-parent family)$2,124$1,685Amount for a severe and prolonged impairment in mental or physical functions$3,334$2,645Amount for a person living alone$1,721$1,365Age amount$3,158$2,505Amount for retirement income$2,805$2,225Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older$34,030$33,755Gratuities 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 $14,550 to $15,012 for 2018.

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018.

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year.

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60.

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

20182017Basic amount$15,012$11,635Amount transferred from one spouse to the other$15,012$11,635Amount for other dependants who are 18 or older$4,202$3,125Amount for a child under 18 enrolled in post-secondary studies (per term)$2,884$2,145Additional amount for a person living alone (single-parent family)$2,124$1,685Amount for a severe and prolonged impairment in mental or physical functions$3,334$2,645Amount for a person living alone$1,721$1,365Age amount$3,158$2,505Amount for retirement income$2,805$2,225Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older$34,030$33,755Gratuities 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 $14,550 to $15,012 for 2018.

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018.

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year.

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60.

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

The rates, thresholds and amounts that apply to source deductions and contributions for 2018 are given below.

Indexation for 2018

Every year, the personal income tax system is automatically indexed. The indexation rate for 2018 is 0.82%.

Income tax rates and income thresholds

For 2018, the income tax rate applicable to the first taxable income bracket, which includes taxable income of not more than $43,055, has been decreased from 16% to 15%. All other income tax rates remain unchanged. The income thresholds for all the brackets have been indexed. Specifically:

• the 15% rate applies to taxable income of not more than $43,055 (previously $42,705);
• the 20% rate applies to taxable income of more than $43,055, but not more than $86,105 (previously $85,405);
• the 24% rate applies to taxable income of more than $86,105, but not more than $104,765 (previously $103,915);
• the 25.75% rate applies to taxable income of more than $104,765.

Note that the fixed rate used to calculate the source deduction of income tax on certain payments and certain remuneration is also reduced because of the rate reduction applicable to the first taxable income bracket. For more information, see Reduction in the fixed tax rate applicable to certain payments and certain remuneration below.

Source Deductions Return (form TP-1015.3-V)

The amounts on the Source Deductions Return (form TP-1015.3-V) that are used to determine the deduction codes have been revised as follows for 2018:

• the basic amount and the amount transferred from one spouse to the other have been increased from $11,635 to $14,890, and then to $15,012, after indexation for 2018;
• the amount for a child under 18 enrolled in post-secondary studies has been increased from $2,145 to $2,861, and then to $2,884, after indexation for 2018;
• the amount for other dependants who are 18 or older has been increased from $3,125 to $4,168, and then to $4,202, after indexation for 2018;
• the other amounts have been multiplied by 1.25, and indexed for 2018;
• the reduction threshold applicable to the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older has been indexed for 2018.

Employees and beneficiaries do not need to complete the 2018 version of form TP-1015.3-V to benefit from the changes because the deduction codes are not affected.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you do not have to make any adjustments because the changes are included in the table. 

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you have to take the changes into account in the formulas.

Form TP-1015.3-V has also been revised to take into account the changes to the calculation of the amount for dependants, the age amount, the amount for a person living alone and the amount for retirement income. Moreover, the conditions for claiming the amount for workers have been revised.

The amounts used to determine the deduction codes for 2018 are shown in the table below. The amounts for 2017 are provided for information purposes.

2018 2017 Basic amount $15,012 $11,635 Amount transferred from one spouse to the other $15,012 $11,635 Amount for other dependants who are 18 or older $4,202 $3,125 Amount for a child under 18 enrolled in post-secondary studies (per term) $2,884 $2,145 Additional amount for a person living alone (single-parent family) $2,124 $1,685 Amount for a severe and prolonged impairment in mental or physical functions $3,334 $2,645 Amount for a person living alone $1,721 $1,365 Age amount $3,158 $2,505 Amount for retirement income $2,805 $2,225 Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for workers 62 or older $34,030 $33,755 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 $14,550 to $15,012 for 2018. 

Note that the rate for source deductions of income tax on gratuities and retroactive pay remains 8%.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,140 to $1,150 for 2018.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,140 to $1,150 for 2018. 

Disability assistance payments from an RDSP

For 2018, if you make disability assistance payments to a beneficiary of a registered disability savings plan (RDSP) who is resident in Canada, you must withhold income tax at a rate of 15% from the taxable portion of the payments that exceeds $18,346 (previously $14,280) for the year. 

Maximum pensionable earnings and QPP contributions

For 2018, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $55,300 to $55,900. The QPP contribution rate remains 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 $2,797.20 to $2,829.60. 

Maximum insurable earnings and QPIP premiums

For 2018, the maximum insurable earnings for the purpose of the Québec parental insurance plan (QPIP) have been increased from $72,500 to $74,000. The employee premium rate remains 0.548% and the employer premium rate 0.767%. As a result, the maximum annual employee premium is $405.52 (previously $397.30) and the maximum annual employer premium is $567.58 (previously $556.08).

Contribution related to labour standards

For 2018, the portion of the remuneration in excess of $74,000 (previously $72,500) is not subject to the contribution related to labour standards.

Reduction in the fixed tax rate applicable to certain payments and certain remuneration

The fixed rate used to calculate source deductions of income tax on certain payments and certain remuneration has been decreased from 16% to 15% because of the rate reduction applicable to the first taxable income bracket (see Income tax rates and income thresholds above). The 15% rate applies to:

• the portion of a single payment from a registered retirement income fund (RRIF)  that exceeds the minimum amount;
• single payments from a registered retirement savings plan (RRSP);
• single payments from neither a RRIF or an RRSP, that do not exceed $5,000, such as: 
  • retiring allowances,
  • certain payments from a registered education savings plan (RESP) or a pension plan, including payments from a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP),
  • payments made under a deferred profit-sharing plan (DPSP),
  • death benefits,
  • payments made to an employee or a former employee further to an order or a judgment, where a portion of the amount paid relates to a previous year;
• disability assistance payments from a registered disability savings plan (RDSP);
• income supplements paid under a government work-incentive project;
• amounts paid to a fisher who has elected to have income tax deducted at source from his or her income derived from fishing by completing form TP-1015.N-V.

The amount of the source deduction of income tax from payments made or remuneration paid after December 31, 2017, is equal to 15% of the amount of the payment or remuneration.

For more information, see Single Payments.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares. 

A corporation or a partnership that wants to take advantage of the tax holiday for a large investment project must apply to the Minister of Finance for an initial qualification certificate. The application must be filed before work on the project begins, and no later than December 31, 2020 (extended from November 20, 2017).

If a corporation or a partnership holds an initial qualification certificate in respect of a large investment project, it can apply to the Minister of Finance to have the certificate amended to add a phase to the project. The application must be filed:

• before work on the additional phase begins; and
• no later than the date on which the application for the first annual certificate in respect of the project is filed, and before January 1, 2021. 

A corporation or a partnership that wants to take advantage of the tax holiday for a large investment project must apply to the Minister of Finance for an initial qualification certificate. The application must be filed before work on the project begins, and no later than December 31, 2020 (extended from November 20, 2017).

If a corporation or a partnership holds an initial qualification certificate in respect of a large investment project, it can apply to the Minister of Finance to have the certificate amended to add a phase to the project. The application must be filed:

• before work on the additional phase begins; and
• no later than the date on which the application for the first annual certificate in respect of the project is filed, and before January 1, 2021. 

A corporation or a partnership that wants to take advantage of the tax holiday for a large investment project must apply to the Minister of Finance for an initial qualification certificate. The application must be filed before work on the project begins, and no later than December 31, 2020 (extended from November 20, 2017).

If a corporation or a partnership holds an initial qualification certificate in respect of a large investment project, it can apply to the Minister of Finance to have the certificate amended to add a phase to the project. The application must be filed:

• before work on the additional phase begins; and
• no later than the date on which the application for the first annual certificate in respect of the project is filed, and before January 1, 2021. 

A corporation or a partnership that wants to take advantage of the tax holiday for a large investment project must apply to the Minister of Finance for an initial qualification certificate. The application must be filed before work on the project begins, and no later than December 31, 2020 (extended from November 20, 2017).

If a corporation or a partnership holds an initial qualification certificate in respect of a large investment project, it can apply to the Minister of Finance to have the certificate amended to add a phase to the project. The application must be filed:

• before work on the additional phase begins; and
• no later than the date on which the application for the first annual certificate in respect of the project is filed, and before January 1, 2021. 

A corporation or a partnership that wants to take advantage of the tax holiday for a large investment project must apply to the Minister of Finance for an initial qualification certificate. The application must be filed before work on the project begins, and no later than December 31, 2020 (extended from November 20, 2017).

If a corporation or a partnership holds an initial qualification certificate in respect of a large investment project, it can apply to the Minister of Finance to have the certificate amended to add a phase to the project. The application must be filed:

• before work on the additional phase begins; and
• no later than the date on which the application for the first annual certificate in respect of the project is filed, and before January 1, 2021.