Tax Flash Bulletin
2022 Quebec Budget Highlights
On March 22, 2022, Quebec’s Finance Minister, Eric Girard, released the province’s 2022-2023 budget. The minister forecasts a $7.4 billion deficit for the current 2021-2022 fiscal year in comparison to the $12.3 billion deficit projected in March 2021. The minister projects a $6.5 billion deficit for the 2022-2023 budget year and stated that the government is on the path to restore a balanced budget by 2027-2028. We have highlighted selected budget measures that affect individuals and small businesses in Quebec.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to Quebec individual income tax rates or income tax brackets. Quebec indexed the 2022 tax brackets at an inflation rate of 2.64%.
Quebec Income Tax Brackets and Rates
| 2021 Taxable Income | 2022 Taxable Income | Rate |
|---|---|---|
| $0 to $15,728 | $0 to $16,143 | 0.00% |
| $15,728 to $45,105 | $16,143 to $46,295 | 15.00% |
| $45,105 to $90,200 | $46,295 to $92,580 | 20.00% |
| $90,200 to $109,755 | $92,580 to $112,655 | 24.00% |
| Over $109,755 | Over $112,655 | 25.75% |
Top Combined Quebec and Federal Rates
| Income Type | 2021 | 2022 |
|---|---|---|
| Salary, interest, pension, foreign | 53.31% | 53.31% |
| Eligible dividends | 40.11% | 40.11% |
| Non-eligible dividends | 48.02% | 48.70% |
| Capital gains | 26.65% | 26.65% |
Top rates apply to taxable income over $221,708 ($216,511 for 2021) based on known rates as of March 22, 2022
Cost of Living One-Time Payment
Because of the rising cost of living in Quebec, the provincial government will provide a one-time payment of $500 per adult aged 18 or older with a net income of $100,000 or less. The amount will be reduced by 10% for income in excess of $100,000; a person with over $105,000 of net income will not receive the benefit. Quebec will determine eligibility based on information in the 2021 individual income tax returns. The assistance will be a refundable tax credit individuals can claim on their 2021 Quebec tax return.