Québec Tax Landscape

1. Dual filing — T1 + TP-1

The federal return follows the same rules as the rest of Canada (with Québec-specific lines). The provincial return TP-1 is filed with Revenu Québec by the same deadlines (30 April / 15 June). Many calculation areas — capital gains, CCA, business deductions — mirror the federal rules but with separate forms and occasional substantive differences.

2. Québec provincial brackets 2025

3. The 16.5 % federal abatement

Because Québec administers its own income tax, the federal basic tax is reduced by 16.5 % for Québec residents (ITA s. 120(2)). This is automatic — the abatement appears on your T1 and prevents double-counting against the provincial bill.

4. QPP vs CPP

Québec opted out of the CPP from inception. The Québec Pension Plan (QPP) is structurally identical but slightly higher: the 2025 employee/self-employed combined rate is 12.80 % up to YMPE ($71,300) plus QPP2 above. Use the CPP & EI Calculator — it switches automatically when you set the province to Québec.

5. QPIP — mandatory for self-employed

The Québec Parental Insurance Plan (QPIP) is mandatory for Québec self-employed residents (federal EI is optional). 2025 rate: 0.878 % on self-employed earnings up to $98,000. Provides maternity, paternity, parental and adoption benefits — far more generous than federal EI special benefits.

6. QST — separate registration

The Québec Sales Tax (QST) is 9.975 % and administered by Revenu Québec, not the CRA. You register separately (form FP-2500-V) and file separately. The $30,000 small-supplier threshold mirrors GST/HST. See the GST/HST Guide.

7. RL-1 instead of T4

Québec employees receive both a T4 (federal) and an RL-1 (provincial). Self-employed contractors paid by a Québec business may also receive an RL-1 for amounts that need provincial reporting.

8. Québec-specific credits

• Solidarity Tax Credit — refundable, includes housing & QST components
• Work Premium — refundable supplement for low-income workers
• Tax Shield — protects the Work Premium / childcare credit when income rises
• Tax credit for home-support services for seniors — 70+ residents

9. French language requirements — Bill 96

Since the 2022 amendments to the Charter of the French Language, businesses serving Québec customers must offer service in French. From 1 June 2025, public signage and product packaging requirements are strengthened. Businesses with 25+ employees must be registered for francisation with the OQLF (previously 50+).

10. RBQ licence — construction in Québec

Any contractor performing construction work in Québec must hold a Régie du bâtiment du Québec (RBQ) licence (Building Act, CQLR c. B-1.1). This is separate from any other provincial trade certification and applies to out-of-province contractors working on Québec sites.