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The main Quebec tax differences are these. Quebec runs its own income tax, charges its own 9.975% sales tax on top of the 5% GST, and gives Quebec residents a 16.5% federal abatement. On $60,000 of employment income, our calculator shows about $9,509 of income tax in Quebec against $8,320 in Ontario, before other credits.
Who collects income tax in Quebec?
The CRA says it collects and administers individual income tax for the provinces and territories except Quebec. So a Quebec resident deals with two tax bodies: the CRA for the federal part and Revenu Québec for the provincial part. Quebec’s indexation for 2026 is 2.05%, according to the province’s own announcement.
In practice that means two returns, filed separately, each with its own slips and its own balance owing or refund. A Montreal freelancer who files only the federal one has done half the job.
The same split applies to corporations. The CRA’s corporation tax page says Quebec and Alberta operate independently of the CRA’s agreements with other provinces. Quebec sets its own corporate rules, so check Revenu Québec for the provincial side.
The abatement is the piece most people don’t see. Federal tax for Quebec residents is reduced by 16.5% to make room for Quebec’s higher provincial tax. It’s built into the calculators, so you don’t apply it yourself.
What are Quebec’s income tax brackets?
Quebec has four brackets for 2026, taken from our data based on the Finances Québec parameters. We couldn’t open that document ourselves, so check the figures on Revenu Québec before you file.
| Taxable income | Quebec rate |
|---|---|
| Up to $54,345 | 14% |
| $54,345 to $108,680 | 19% |
| $108,680 to $132,245 | 24% |
| Above $132,245 | 25.75% |
Those are provincial rates only. Federal tax comes on top, after the abatement. Drop your own figures into the income tax calculator and pick Quebec to see the whole bill.
How do Quebec and Ontario compare on a paycheque?
Here are the engine’s numbers for employment income only, 2026 rates, no other credits.
| Employment income | Quebec income tax | Ontario income tax | Quebec payroll contributions | Ontario payroll contributions |
|---|---|---|---|---|
| $40,000 | $4,552 | $4,363 | $2,992 | $2,824 |
| $60,000 | $9,509 | $8,320 | $4,598 | $4,340 |
| $100,000 | $23,481 | $20,024 | $6,221 | $5,770 |
Payroll contributions in Quebec mean the Quebec Pension Plan, QPIP and EI, while Ontario workers pay CPP and EI. Quebec comes out higher at all three incomes, and the gap grows with income. But Quebec also runs its own programs, and we haven’t costed those here, so this isn’t a verdict on which province is better. The take-home pay calculator puts it in monthly terms.
Add the two kinds of deduction together and the picture sharpens. At $60,000 a Laval employee loses $14,107 to income tax and payroll contributions, and an Ottawa employee loses $12,660. That’s $1,447 a year, or about $120 a month less in the Quebec paycheque before any of Quebec’s own credits come into play.
How does Quebec sales tax work?
Quebec charges GST at 5% and QST at 9.975%, and Revenu Québec says QST is worked out on the price before GST. So on a $100 item you pay $5 of GST and about $9.98 of QST, about $114.98 in all. (Our GST and QST calculator rounds the QST to the cent and shows $9.98.)
That’s a combined 14.975%. Saskatchewan, for comparison, charges a 6% PST on top of the GST. Rates differ by province and item, and basic groceries and many medical services aren’t taxed, so a rate alone won’t tell you what your basket costs.
What about Quebec businesses?
For a small Canadian controlled private corporation, the Quebec small business rate is 3.2% for a calendar 2026 year, and 2.2% for years that begin after 29 April 2026. Federal is 9% on the first $500,000. On $100,000 of active business income for a calendar 2026 year, the corporate tax calculator gives $12,200 combined, which is $9,000 federal plus $3,200 provincial.
The 2.2% rate has a condition: the corporation needs enough paid hours to get the full reduction. Our data lists 5,500 hours with a phase-out from 5,000, from a Revenu Québec notice we could only see in a search summary. Confirm it before you plan around it.
What should you do if you’re moving to Quebec?
Expect the first year to feel different. You’ll get slips for both governments, you’ll deal with Revenu Québec as well as the CRA, and your payroll deductions will look different from what your friends in Ontario see. Compare after-tax pay, not rates, and put a few numbers through the take-home pay calculator before you sign a lease. For a family of two earners, run both salaries, since the gap grows with income. Keep the first return simple, keep every slip, and read the Revenu Québec guide for the provincial side.
Mistakes when comparing Quebec taxes
Don’t compare rates without the abatement. Don’t add GST and QST as a flat 14.975% on the after-GST price if you’re reconciling a receipt: Revenu Québec builds it from the pre-tax price. And don’t assume an Ontario rule carries over to Quebec.
We left out the Quebec dividend credit and the work deduction because we couldn’t confirm them on an official page. They matter if you have dividends or a low income, so look them up on Revenu Québec.
Where the numbers come from
The CRA supplied the statements on who collects tax and on corporate rates, and Quebec’s announcement supplied the 2.05% indexation. The brackets, the 16.5% abatement, the QST and GST rates and the corporate rates come from Revenu Québec, Finances Québec and our 2026 data files, as noted above. All examples use our calculators. This site is independent and isn’t tied to either tax agency.
Frequently asked questions
Does Quebec have its own income tax?
Yes. The CRA says it collects individual tax for the provinces except Quebec, so Quebec residents file with Revenu Québec too.
What is the QST rate?
9.975%, charged on the price before GST, which is 5%.
What is the federal abatement for Quebec?
16.5% off federal tax for Quebec residents.
Is Quebec income tax higher than Ontario?
On employment income of $40,000 to $100,000, our 2026 numbers show higher Quebec income tax at each level.
What is the small business rate in Quebec?
3.2% for a calendar 2026 year, then 2.2% for years beginning after 29 April 2026.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
- Quebec income tax, QPP and QST in 2026
How Quebec income tax works in 2026: its own return and brackets, the federal abatement, QPP and QPIP contributions, QST, and calculators for Quebec