2024 Quebec Budget Highlights
On March 12, 2024, Quebec’s Finance Minister, Eric Girard, released the province’s 2024-2025 budget. We have highlighted selected tax measures that affect individuals and businesses in Quebec.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. The personal tax brackets continue to be indexed at an inflation rate of 5.08% for 2024.
| 2023 Taxable Income | 2024 Taxable Income | Rate |
|---|---|---|
| $0 to $49,275 | $0 to $51,780 | 14.00% |
| $49,275 to $98,540 | $51,780 to $103,545 | 19.00% |
| $98,540 to $119,910 | $103,545 to $126,000 | 24.00% |
| Over $119,910 | Over $126,000 | 25.75% |
Top Combined Quebec and Federal Rates
| Income Type | 2023 | 2024 |
|---|---|---|
| Salary, interest, pension, foreign | 53.51% | 53.51% |
| Eligible dividends | 40.11% | 40.11% |
| Non-eligible dividends | 48.70% | 48.70% |
| Capital gains | 26.65% | 26.65% |
Top rates apply to taxable income over $246,752 ($235,675 for 2023) based on known federal and Quebec rates as of March 12, 2024
Personal Income Tax Measures
Increased Support for Seniors with Disabilities
- The budget announced the elimination of the retirement pension reduction for seniors with disabilities aged 65 and over as of January 1, 2025
- The government will protect the benefits of recipients of a disability pension from age 60 to 64 to ensure that their benefits are at least as high as what they were prior to the payment of their retirement pension
Changes to supplements for handicapped children
- Supplements for handicapped children under the Family Allowance refundable tax credit are proposed to be amended, simplifying the eligibility criteria for applications as of July 1, 2024
Reductions to the Roulez Vert Program
-
The government has announced that the maximum rebates for the purchase
of fully electric and plug-in hybrid vehicles will be reduced starting
on January 1, 2025 as follows:
- $4,000 for new fully electric or fuel cell vehicles and $2,000 for new plug-in hybrid vehicles costing less than $65,000
- $2,000 for used fully electric vehicles and $1,000 for electric motorcycles
- The rebates are to be reduced gradually in future years and will stop being offered on or after January 1, 2027.
BUSINESSES
The budget did not propose any changes to Quebec corporate income tax rates or the small business deduction calculation.
| Income Type | Quebec Rate | Federal Rate | Combined Rates Calendar 2024 |
|---|---|---|---|
| General corporate income | 11.50% | 15.00% | 26.50% |
| Small business income – federal and Quebec income eligible for the small business deduction | 3.20% | 9.00% | 12.20% |
| Small business income – only federal income eligible for the small business deduction | 11.50% | 9.00% | 20.50% |
| CCPC* investment income | 11.50% | 38.670% | 50.17% |
| Non-CCPC investment income | 11.50% | 15.00% | 26.50% |
| Manufacturing and processing income | 11.50% | 15.00% | 26.50% |
*Canadian-controlled private corporation
Based on known federal and Quebec rates at March 12, 2024
Other Business Income Tax Measures
Enhanced Support for Quebec Film and Television Production
- Enhancements to the refundable tax credit for Quebec film or television productions, including increasing the limit from 50% to 65% of production costs incurred and directly attributable to film production.
- The budget also proposes to increase the rate of the basic tax credit by 5% for a total of 25% per taxation year.
Changes to the Tax Credits Supporting Jobs in the Information Technology (IT) Sector
- To improve fairness and the impact of the tax credits supporting jobs in the IT sector, the government plans gradually harmonize the base tax rates for the tax credit for the development of e-business (CDAE) and tax credit for multimedia titles (CTMM)
- The government plans to refocus tax assistance to the IT sector on the highest value-added jobs as of 2025, including eliminating the salary cap per employee under the CDAE and CTMM
Abolishing the Tax Credit for the Retention of Experienced Workers (CMETE)
- The government plans to abolish the CMETE which was introduced in 2019 as of the day following the 2024-2025 budget speech due to its lack of efficiency
- In addition, changes to the Quebec Pension Plan (QPP) applicable as of 2024 will reduce employer contributions for their experienced workers aged 65 and over who decide to stop contributing, thereby reducing the tax advantage offered by the CMETE
Refer to the 2024 Quebec Budget here for further details.
This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member - Canadian Investor Protection Fund.