Filing your taxes on time isn’t just about avoiding penalties — it’s also key to unlocking provincial credits and benefits that are tied to your income. Missing out could mean leaving money on the table, so it’s worth staying up to date on what’s new this year.
For 2024, Quebec’s personal income tax system is indexed at a rate of 5.08%, tied to the province’s consumer price index. This adjustment affects tax brackets, income thresholds, and amounts for several benefits and tax credits, helping them keep pace with inflation.
But that’s not all — there are several other changes, updates, and new policies affecting your 2024 tax return in Quebec. From adjusted contribution limits to new rules for cryptoassets, here’s a breakdown of what you need to know before filing your taxes this year.
New 2024 Tax Brackets
While the tax rates themselves have stayed the same, the taxable salary brackets have been indexed to the cost of living, meaning you might pay less tax on the same income. For 2024, the rates are:
- 14% on income up to $51,780
- 19% on income over $51,780 and up to $103,545
- 24% on income over $103,545 and up to $126,000
- 25.75% on income over $126,000
Don’t forget that these amounts are in addition to the federal income tax you’ll have to pay to the Canada Revenue Agency (CRA) for your 2024 income.
Personal Tax Credit Increases
Many personal income tax credits have been indexed, including the basic personal amount, which is $18,056 for the 2024 base year.
The income thresholds and payment amounts are increasing on several other credits too, including the family allowance, solidarity tax credit, general work premium, tax credit for childcare expenses, tax credit for medical expenses, Quebec education savings incentive, senior assistance amount, and more.
Changes to Québec Pension Plan Contributions
Starting in 2024, several updates to Quebec Pension Plan (QPP) contributions might affect your paycheque:
- If your income exceeds $68,500, you’ll pay a second additional contribution up to $73,200.
- Self-employed individuals aged 65 to 72 can opt out of contributions if they’ve started receiving a retirement pension.
- Contributions automatically end the year you turn 73.
Home Buyers’ Plan Withdrawal Limit Increase
If you’re planning to buy your first home, the RRSP withdrawal limit under the Home Buyers’ Plan (HBP) was increased from $35,000 to $60,000 in 2024.
Boost in the Tax Credit for Home-Support Services for Seniors
Seniors benefiting from this tax credit will see the rate increase from 37% to 38% in 2024, offering a bit more financial relief for eligible home-support expenses.
New Filing Requirement for Cryptoassets
Crypto investors, take note! Starting in 2024, if you acquire, hold, or use cryptoassets anytime in the year, you’re required to file a Cryptoasset Return (TP-21.4.39-V) alongside your tax return.
Capital Gains Inclusion Rate Increase
The inclusion rate for capital gains increased from 50% to 66.67% on June 25, 2024.
However, gains up to $250,000 realized after this date may qualify for a reduction that lowers the rate back to 50%.
Changes to Certain Deduction Rates
As of June 25, 2024, the rate for certain deductions has dropped from 50% to 33.33%, though additional deductions may apply in some cases. This includes the security option deduction, the deduction for shares received in exchange for mining property, and the deduction for a single payment that includes a share received from an employer.
Expanded Capital Gains Deduction for Business Transfers
Did you recently sell your business to an employee ownership trust? Starting in 2024, you can now claim a deduction of up to $10 million for capital gains under certain conditions.
Expansion of Disability Supports Deduction
New eligible expenses have been added to the list to be claimed under the disability supports deduction, providing extra support to individuals with disabilities.
Stay Ahead with Webtaxonline
Tax season can be complicated, but you don’t have to navigate it alone. Webtaxonline is here to help you maximize your deductions, claim eligible credits, and ensure compliance with the latest tax regulations. Let our experts handle your tax return efficiently and accurately—so you can focus on what matters most. Contact Webtaxonline today and make tax season stress-free!