Quebec Combined Income Tax Calculator

Quebec is the only province that administers its own personal income tax system entirely separate from the federal government. Quebec residents file two tax returns: a T1 with CRA and a provincial TP-1 with Revenu Québec. To compensate for the cost of running a parallel system, Quebec residents receive a 16.5% abatement on basic federal income tax, which reduces the effective federal rate. The calculator above shows the federal tax after abatement, Quebec provincial tax, and the combined total for 2026.

How much income tax does a Quebec resident pay on $85,000?

At $85,000 of taxable income in 2026, a Quebec resident owes approximately $9,450 in net federal income tax (after the 16.5% abatement) and approximately $10,833 in net Quebec provincial tax, for a combined total of approximately $20,283. The after-tax income is approximately $64,717. The combined marginal rate at $85,000 is approximately 36.12%: federal 20.5% after abatement (17.12%) plus Quebec 19%.

How Quebec income tax is calculated

The federal abatement — unique to Quebec

The federal abatement reduces the basic federal income tax payable by Quebec residents by 16.5%. This is a statutory reduction under the Federal-Provincial Fiscal Arrangements Act, reflecting the fact that Quebec operates its own tax collection and social program infrastructure. The abatement applies to the basic federal tax after the Basic Personal Amount credit, but before most other federal non-refundable credits. For a Quebec resident with $9,000 of basic federal tax, the abatement is $1,485, reducing net federal tax to $7,515. This abatement is not available to residents of any other province.

Quebec’s four provincial brackets

Quebec uses four provincial brackets for 2026: 14% on the first $54,345; 19% on income from $54,346 to $108,680; 24% on income from $108,681 to $132,245; and 25.75% on income above $132,245. The Quebec Basic Personal Amount is $18,571, generating a credit of approximately $2,600 at the 14% lowest-bracket rate. Quebec’s BPA is higher than BC’s ($13,216) and Nova Scotia’s ($11,932), but lower than Alberta’s ($22,769) and Saskatchewan’s ($20,381).

Two separate returns

Quebec residents file the federal T1 with CRA by April 30, and a separate provincial TP-1 with Revenu Québec, also by April 30. The two returns share the same taxable income figure from the federal calculation, but Revenu Québec applies its own credits, deductions, and adjustments. Some credits and deductions are available only at the Quebec level (such as the solidarity tax credit and QPIP premiums), while others exist only federally. The two-return system requires tracking two sets of rules, notices of assessment, and potential adjustments.

QPP instead of CPP

Quebec residents contribute to the Quebec Pension Plan (QPP) instead of the Canada Pension Plan (CPP). QPP and CPP offer similar benefits but are governed by separate legislation and administered separately. QPP contributions are deducted from Quebec taxable income on the TP-1, and the QPP contribution generates both a federal non-refundable credit and a Quebec deduction or credit, depending on the nature of the contribution (employee versus employee-enhanced portion). In 2026, QPP contribution rates and YMPE thresholds closely mirror CPP.

QPIP: Quebec’s parental insurance

Quebec operates its own Parental Insurance Program (QPIP) instead of the federal Employment Insurance parental benefits. QPIP premiums are paid by employees and employers in Quebec and are deducted on the TP-1. QPIP offers generally more flexible and generous parental benefits than the federal EI system. Non-residents who move to Quebec mid-year transition between EI and QPIP coverage.

Verified against source

Quebec provincial brackets and Basic Personal Amount: Revenu Québec, Guide IN-117, The Basics of Québec Income Tax 2026. Federal abatement: Federal-Provincial Fiscal Arrangements Act (R.S.C. 1985, c. F-8), section 26, and ITA section 120(2). CRA T1 line 44800 (Quebec abatement). Federal brackets: CRA Schedule 1 for 2026.

Quebec income tax brackets 2026 (effective combined rates)

Federal rates shown after the 16.5% Quebec abatement (e.g. 20.5% × 83.5% = 17.12%).

Worked example: Quebec resident, $95,000 employment income

A Quebec resident reports $95,000 of taxable income in 2026. Federal gross tax: 14% on $58,523 ($8,193) plus 20.5% on $36,477 ($7,478) = $15,671. Federal BPA credit: $2,303. Federal before abatement: $13,368. Quebec abatement: $13,368 × 16.5% = $2,206. Net federal tax: $11,162.

Quebec gross tax: 14% on $54,345 ($7,608) plus 19% on $40,655 ($7,724) = $15,332. QC BPA credit: $18,571 × 14% = $2,600. Quebec net: $12,732.

Combined total: $11,162 plus $12,732 = $23,894. Average rate: 25.2%. After-tax income: $71,106. Combined marginal: 17.12% (federal after abatement) + 19% (QC second bracket) = 36.12%.

Rules and edge cases

Quebec solidarity tax credit

The Quebec Solidarity Tax Credit (STC) is a refundable credit combining three components: a component for QST paid, a component for housing costs (rent or property tax), and a component for residents of northern villages. The STC is claimed on the TP-1 and is income-tested, phasing out at higher income levels. Low-income Quebec residents may receive several hundred to over $1,000 per year in STC payments. The STC is not captured in the base income tax calculation but reduces effective after-tax burden for eligible residents.

RRSP deductions on Quebec return

RRSP contributions are deductible on both the federal T1 and the provincial TP-1. A $10,000 RRSP contribution reduces Quebec taxable income by $10,000, saving Quebec provincial tax at the applicable marginal rate. For a resident in the 19% second bracket, the Quebec tax saving is $1,900. Combined with the federal saving after abatement (at the 14% bracket, saving is 14% × 83.5% = approximately $1,169), the total combined saving on a $10,000 RRSP contribution is approximately $3,069 at lower incomes.

Quebec’s medical expense credit rate

Quebec uses a 20% rate for its provincial medical expense credit, compared to the federal rate of 14%. A Quebec resident claiming $3,000 in eligible medical expenses above the threshold receives a Quebec credit of $600 (at 20%) plus a federal credit of $420 before abatement ($14%), giving a combined benefit that reflects both rates. The higher Quebec medical expense rate partially compensates for Quebec’s higher provincial income tax burden.

QST on employment expenses

Quebec employees may claim a refund of QST paid on employment expenses (such as meals, tools, and vehicle costs) when their employer requires the expense and does not reimburse it. This QST refund is available to Quebec employees who claim employment expenses on the TP-1 and is not available in other provinces. The refund is in addition to the federal GST rebate available to employees in all provinces.