Revenu Québec Infos

The following conditions must be met in order for a service of providing courses to individuals to be exempt from GST and QST:

• The service is provided by a government, vocational school, school authority, university or public college.
• The courses are part of a program leading to a certificate, diploma, licence or similar document that attests to the competence of an individual to practise or perform a trade or vocation.

Consequently, stand-alone courses are taxable if they do not lead to a document that attests to the competence of an individual to practise or perform a trade or vocation, even if they may be useful to the individual and, in some cases, be a requirement for the individual's job. Likewise, courses provided by an organization over a brief period (such as one or two days) are taxable, since they offer no progression or depth of learning leading to a diploma or certificate that attests to the competence of an individual to practise or perform a trade or vocation.

Vocational school

An organization may be considered a vocational school and treated as a public college or similar institution in respect of the tax treatment of the courses it dispenses, provided it was established and is operated primarily to provide correspondence courses or vocational courses intended to develop or enhance the student's occupational skills.

Vocational schools usually have some or all of the following characteristics:

• The organization may or may not be a corporation. In some cases, it may be an individual.
• The organization identifies and advertises itself as a school and is publicly known as a school.
• The organization offers courses or programs following a scheduled curriculum under which the courses progress in the depth of learning from semester to semester.
• The organization has a student body which forms one or more classes.
• The students (or their parents or guardians if they are under age) pay tuition to the organization for the training they receive.
• The organization owns, rents or leases a place from which students are provided correspondence courses or vocational courses.

If an organization is unable to establish that it is in fact operating a vocational school, its training services are taxable.

Example 1

Health and safety legislation such as that administered by a provincial worker's compensation board requires practitioners of certain occupations to maintain first aid certification. Business A advertises itself as providing basic first aid training. Business A markets its classes as helping workers to comply with both federal and provincial occupational health and safety legislation. The first aid courses offered by Business A generally extend over one or two days.

Business A is not considered a vocational school, since it was not established and is not operated primarily to provide courses that develop or enhance an individual's occupational skills. Rather, it was established to provide “one-off” courses that satisfy health and safety legislation. Also, the courses offered do not lead to certificates, diplomas or other documents that attest to the competence of an individual to practise or perform a trade or vocation. The supply of such courses is therefore taxable under the GST/HST and QST system.

Example 2

Business B advertises itself as providing first aid training and other courses as part of its health care aide program leading to a diploma certifying competence to practise as a health care aide. Business B is registered with the provincial government as a vocational school and advertises itself as providing the specialized training needed to work as an intermediate or extended caregiver. The program takes about 30 weeks to complete.

Business B meets the conditions to be considered a vocational school, since it:

• was established and is operated primarily to provide a program of courses that develop or enhance an individual's occupational skills;
• is registered with the provincial government as a vocational school and advertises itself as providing vocational training.

All the courses provided by Business B under its health care aide program are exempt from GST and QST, since the courses lead to a certificate that attests to an individual's competence to practise as a health care aide.

Note

A vocational school may elect to have the supply of its courses to individuals deemed taxable where they would otherwise be exempt. To make such an election, the school must file form FP-2029-V, Election or Revocation of an Election by an Organization to Have the Supply of Its Courses, Examinations and Certificates Deemed Taxable.

The following conditions must be met in order for a service of providing courses to individuals to be exempt from GST and QST:

• The service is provided by a government, vocational school, school authority, university or public college.
• The courses are part of a program leading to a certificate, diploma, licence or similar document that attests to the competence of an individual to practise or perform a trade or vocation.

Consequently, stand-alone courses are taxable if they do not lead to a document that attests to the competence of an individual to practise or perform a trade or vocation, even if they may be useful to the individual and, in some cases, be a requirement for the individual's job. Likewise, courses provided by an organization over a brief period (such as one or two days) are taxable, since they offer no progression or depth of learning leading to a diploma or certificate that attests to the competence of an individual to practise or perform a trade or vocation.

Vocational school

An organization may be considered a vocational school and treated as a public college or similar institution in respect of the tax treatment of the courses it dispenses, provided it was established and is operated primarily to provide correspondence courses or vocational courses intended to develop or enhance the student's occupational skills.

Vocational schools usually have some or all of the following characteristics:

• The organization may or may not be a corporation. In some cases, it may be an individual.
• The organization identifies and advertises itself as a school and is publicly known as a school.
• The organization offers courses or programs following a scheduled curriculum under which the courses progress in the depth of learning from semester to semester.
• The organization has a student body which forms one or more classes.
• The students (or their parents or guardians if they are under age) pay tuition to the organization for the training they receive.
• The organization owns, rents or leases a place from which students are provided correspondence courses or vocational courses.

If an organization is unable to establish that it is in fact operating a vocational school, its training services are taxable.

Example 1

Health and safety legislation such as that administered by a provincial worker's compensation board requires practitioners of certain occupations to maintain first aid certification. Business A advertises itself as providing basic first aid training. Business A markets its classes as helping workers to comply with both federal and provincial occupational health and safety legislation. The first aid courses offered by Business A generally extend over one or two days.

Business A is not considered a vocational school, since it was not established and is not operated primarily to provide courses that develop or enhance an individual's occupational skills. Rather, it was established to provide “one-off” courses that satisfy health and safety legislation. Also, the courses offered do not lead to certificates, diplomas or other documents that attest to the competence of an individual to practise or perform a trade or vocation. The supply of such courses is therefore taxable under the GST/HST and QST system.

Example 2

Business B advertises itself as providing first aid training and other courses as part of its health care aide program leading to a diploma certifying competence to practise as a health care aide. Business B is registered with the provincial government as a vocational school and advertises itself as providing the specialized training needed to work as an intermediate or extended caregiver. The program takes about 30 weeks to complete.

Business B meets the conditions to be considered a vocational school, since it:

• was established and is operated primarily to provide a program of courses that develop or enhance an individual's occupational skills;
• is registered with the provincial government as a vocational school and advertises itself as providing vocational training.

All the courses provided by Business B under its health care aide program are exempt from GST and QST, since the courses lead to a certificate that attests to an individual's competence to practise as a health care aide.

Note

A vocational school may elect to have the supply of its courses to individuals deemed taxable where they would otherwise be exempt. To make such an election, the school must file form FP-2029-V, Election or Revocation of an Election by an Organization to Have the Supply of Its Courses, Examinations and Certificates Deemed Taxable.

The following conditions must be met in order for a service of providing courses to individuals to be exempt from GST and QST:

• The service is provided by a government, vocational school, school authority, university or public college.
• The courses are part of a program leading to a certificate, diploma, licence or similar document that attests to the competence of an individual to practise or perform a trade or vocation.

Consequently, stand-alone courses are taxable if they do not lead to a document that attests to the competence of an individual to practise or perform a trade or vocation, even if they may be useful to the individual and, in some cases, be a requirement for the individual's job. Likewise, courses provided by an organization over a brief period (such as one or two days) are taxable, since they offer no progression or depth of learning leading to a diploma or certificate that attests to the competence of an individual to practise or perform a trade or vocation.

Vocational school

An organization may be considered a vocational school and treated as a public college or similar institution in respect of the tax treatment of the courses it dispenses, provided it was established and is operated primarily to provide correspondence courses or vocational courses intended to develop or enhance the student's occupational skills.

Vocational schools usually have some or all of the following characteristics:

• The organization may or may not be a corporation. In some cases, it may be an individual.
• The organization identifies and advertises itself as a school and is publicly known as a school.
• The organization offers courses or programs following a scheduled curriculum under which the courses progress in the depth of learning from semester to semester.
• The organization has a student body which forms one or more classes.
• The students (or their parents or guardians if they are under age) pay tuition to the organization for the training they receive.
• The organization owns, rents or leases a place from which students are provided correspondence courses or vocational courses.

If an organization is unable to establish that it is in fact operating a vocational school, its training services are taxable.

Example 1

Health and safety legislation such as that administered by a provincial worker's compensation board requires practitioners of certain occupations to maintain first aid certification. Business A advertises itself as providing basic first aid training. Business A markets its classes as helping workers to comply with both federal and provincial occupational health and safety legislation. The first aid courses offered by Business A generally extend over one or two days.

Business A is not considered a vocational school, since it was not established and is not operated primarily to provide courses that develop or enhance an individual's occupational skills. Rather, it was established to provide “one-off” courses that satisfy health and safety legislation. Also, the courses offered do not lead to certificates, diplomas or other documents that attest to the competence of an individual to practise or perform a trade or vocation. The supply of such courses is therefore taxable under the GST/HST and QST system.

Example 2

Business B advertises itself as providing first aid training and other courses as part of its health care aide program leading to a diploma certifying competence to practise as a health care aide. Business B is registered with the provincial government as a vocational school and advertises itself as providing the specialized training needed to work as an intermediate or extended caregiver. The program takes about 30 weeks to complete.

Business B meets the conditions to be considered a vocational school, since it:

• was established and is operated primarily to provide a program of courses that develop or enhance an individual's occupational skills;
• is registered with the provincial government as a vocational school and advertises itself as providing vocational training.

All the courses provided by Business B under its health care aide program are exempt from GST and QST, since the courses lead to a certificate that attests to an individual's competence to practise as a health care aide.

Note

A vocational school may elect to have the supply of its courses to individuals deemed taxable where they would otherwise be exempt. To make such an election, the school must file form FP-2029-V, Election or Revocation of an Election by an Organization to Have the Supply of Its Courses, Examinations and Certificates Deemed Taxable.

When selling an automobile, a dealer sometimes enters into an instalment-sale (This link will open a new window) contract with the buyer. When the contract is subsequently transferred to a financial institution, the dealer receives the balance of the selling price plus a premium, also referred to as a “commission.”

For GST and QST purposes, an instalment-sale contract is considered to be a debt security and a financial instrument, since it represents a right to be paid money. When the instalment-sale contract is transferred to a third party such as a financial institution, the third party acquires the right to collect the buyer's subsequent payments. The transfer of this right constitutes a financial service and is therefore exempt from GST and QST.

In general, the commission received by the dealer from the financial institution is part of the consideration received for the transfer of the instalment-sale contract and is therefore exempt from GST and QST, like the transfer of the instalment-sale contract.

Services preparatory to the supply of a financial service

When a dealer receives a commission for helping a client obtain a loan from a third party under a financing contract, it must be determined whether the dealer is taking measures to provide a financial service and, if so, whether this financial service is the predominant element of the supply provided.

For example, the services provided by a dealer constitute services preparatory to the supply of a financial service and are taxable where the dealer:

• provides a loan application to the buyer;
• helps the buyer to complete the application;
• verifies the information entered on the application;
• transmits the application to a financial institution.

In this case, the dealer is required to charge GST and QST on any commission for a referral paid to the dealer by the financial institution.

For more information, refer to Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

The limits and rates related to the Québec Pension Plan (QPP) for 2017 are as follows:

• The maximum pensionable earnings have been increased from $54,900 to $55,300.
• The basic exemption is $3,500.
• The maximum contributory earnings have been increased from $51,400 to $51,800.
• The contribution rate has been increased from 5.325% to 5.4% for both employers and employees.
• The maximum employee contribution has been increased from $2,737.05 to $2,797.20.
• The maximum employer contribution has been increased from $2,737.05 to $2,797.20 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource has been increased from 10.65% to 10.8%.
• The maximum contribution for a self-employed person and a person responsible for a family-type resource or an intermediate resource has been increased from $5,474.10 to $5,594.40.

The limits and rates related to the Québec Pension Plan (QPP) for 2017 are as follows:

• The maximum pensionable earnings have been increased from $54,900 to $55,300.
• The basic exemption is $3,500.
• The maximum contributory earnings have been increased from $51,400 to $51,800.
• The contribution rate has been increased from 5.325% to 5.4% for both employers and employees.
• The maximum employee contribution has been increased from $2,737.05 to $2,797.20.
• The maximum employer contribution has been increased from $2,737.05 to $2,797.20 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource has been increased from 10.65% to 10.8%.
• The maximum contribution for a self-employed person and a person responsible for a family-type resource or an intermediate resource has been increased from $5,474.10 to $5,594.40.

The limits and rates related to the Québec Pension Plan (QPP) for 2017 are as follows:

• The maximum pensionable earnings have been increased from $54,900 to $55,300.
• The basic exemption is $3,500.
• The maximum contributory earnings have been increased from $51,400 to $51,800.
• The contribution rate has been increased from 5.325% to 5.4% for both employers and employees.
• The maximum employee contribution has been increased from $2,737.05 to $2,797.20.
• The maximum employer contribution has been increased from $2,737.05 to $2,797.20 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource has been increased from 10.65% to 10.8%.
• The maximum contribution for a self-employed person and a person responsible for a family-type resource or an intermediate resource has been increased from $5,474.10 to $5,594.40.

The limits and rates related to the Québec Pension Plan (QPP) for 2017 are as follows:

• The maximum pensionable earnings have been increased from $54,900 to $55,300.
• The basic exemption is $3,500.
• The maximum contributory earnings have been increased from $51,400 to $51,800.
• The contribution rate has been increased from 5.325% to 5.4% for both employers and employees.
• The maximum employee contribution has been increased from $2,737.05 to $2,797.20.
• The maximum employer contribution has been increased from $2,737.05 to $2,797.20 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource has been increased from 10.65% to 10.8%.
• The maximum contribution for a self-employed person and a person responsible for a family-type resource or an intermediate resource has been increased from $5,474.10 to $5,594.40.

The limits and rates related to the Québec parental insurance plan (QPIP) for 2017 are as follows:

• The maximum insurable earnings have been increased from $71,500 to $72,500.
• The qualifying threshold remains $2,000.
• The employee contribution rate remains 0.548%.
• The employer contribution rate remains 0.767%.
• The maximum employee contribution has been increased from $391.82 to $397.30.
• The maximum employer contribution has been increased $548.41 per employee to $556.08 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource remains 0.973%.
• The maximum contribution for a self-employed person or a person responsible for a family-type resource or an intermediate resource has been increased from $695.70 to $705.43.

The limits and rates related to the Québec parental insurance plan (QPIP) for 2017 are as follows:

• The maximum insurable earnings have been increased from $71,500 to $72,500.
• The qualifying threshold remains $2,000.
• The employee contribution rate remains 0.548%.
• The employer contribution rate remains 0.767%.
• The maximum employee contribution has been increased from $391.82 to $397.30.
• The maximum employer contribution has been increased $548.41 per employee to $556.08 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource remains 0.973%.
• The maximum contribution for a self-employed person or a person responsible for a family-type resource or an intermediate resource has been increased from $695.70 to $705.43.

The limits and rates related to the Québec parental insurance plan (QPIP) for 2017 are as follows:

• The maximum insurable earnings have been increased from $71,500 to $72,500.
• The qualifying threshold remains $2,000.
• The employee contribution rate remains 0.548%.
• The employer contribution rate remains 0.767%.
• The maximum employee contribution has been increased from $391.82 to $397.30.
• The maximum employer contribution has been increased $548.41 per employee to $556.08 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource remains 0.973%.
• The maximum contribution for a self-employed person or a person responsible for a family-type resource or an intermediate resource has been increased from $695.70 to $705.43.

The limits and rates related to the Québec parental insurance plan (QPIP) for 2017 are as follows:

• The maximum insurable earnings have been increased from $71,500 to $72,500.
• The qualifying threshold remains $2,000.
• The employee contribution rate remains 0.548%.
• The employer contribution rate remains 0.767%.
• The maximum employee contribution has been increased from $391.82 to $397.30.
• The maximum employer contribution has been increased $548.41 per employee to $556.08 per employee.
• The contribution rate for self-employed persons and persons responsible for a family-type resource or an intermediate resource remains 0.973%.
• The maximum contribution for a self-employed person or a person responsible for a family-type resource or an intermediate resource has been increased from $695.70 to $705.43.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2017, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2017, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2017, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2017, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2017, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares. 

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
20172016Basic amount$11,635$11,550Amount transferred from one spouse to the other$11,635$11,550Amount for other dependants who are 18 or older$3,125$3,100Amount for a child under 18 enrolled in post-secondary studies$2,145$2,130Additional amount for a person living alone (single-parent family)$1,685$1,675Amount for a severe and prolonged impairment in mental or physical functions$2,645$2,625Amount for a person living alone$1,365$1,355Age amount$2,505$2,485Amount for retirement income$2,225$2,210Reduction 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$33,505Indexation rate for 20170.74%

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.

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
20172016Basic amount$11,635$11,550Amount transferred from one spouse to the other$11,635$11,550Amount for other dependants who are 18 or older$3,125$3,100Amount for a child under 18 enrolled in post-secondary studies$2,145$2,130Additional amount for a person living alone (single-parent family)$1,685$1,675Amount for a severe and prolonged impairment in mental or physical functions$2,645$2,625Amount for a person living alone$1,365$1,355Age amount$2,505$2,485Amount for retirement income$2,225$2,210Reduction 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$33,505Indexation rate for 20170.74%

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.

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
20172016Basic amount$11,635$11,550Amount transferred from one spouse to the other$11,635$11,550Amount for other dependants who are 18 or older$3,125$3,100Amount for a child under 18 enrolled in post-secondary studies$2,145$2,130Additional amount for a person living alone (single-parent family)$1,685$1,675Amount for a severe and prolonged impairment in mental or physical functions$2,645$2,625Amount for a person living alone$1,365$1,355Age amount$2,505$2,485Amount for retirement income$2,225$2,210Reduction 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$33,505Indexation rate for 20170.74%

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.