Principal Changes for 2023
The calculation changes for source deductions and contributions for 2023 relating to tax changes announced before November 1, 2022, are listed below. For information about tax changes announced after October 31, 2022, read the Tax News articles published after that date.
The personal income tax system is indexed at 6.44% for 2023.
Amounts indexed at that rate include:
- income thresholds;
- personal tax credit amounts;
- deduction code amounts;
- the threshold for determining the method to be used to calculate the source deduction of income tax on a gratuity or retroactive pay;
- the maximum deduction for employment income;
- the maximum exemption that can be granted to an emergency services volunteer.
The taxable income thresholds have been indexed for 2023. The income tax rates have not changed. The constants for adjusting the income tax rates have been indexed.
The table below shows the income tax rates, income thresholds and constants for 2023.
| Taxable income | Tax rate | Constant | |
|---|---|---|---|
| More than | Not more than | ||
| $0 | $49,275 | 15% | $0 |
| $49,275 | $98,540 | 20% | $2,463 |
| $98,540 | $119,910 | 24% | $6,405 |
| $119,910 | Not/Applicable | 25.75% | $8,503 |
The personal tax credit amounts on the Source Deductions Return (TP‑1015.3-V) are indexed for 2023.
The table below shows the personal tax credit amounts for 2023.
| Personal tax credit amounts | 2023 |
|---|---|
| Basic personal amount | $17,183 |
| Amount transferred from one spouse to the other | $17,183 |
| Amount for other dependants | $4,810 |
| Amount for a child under 18 enrolled in post-secondary studies (per term) | $3,301 |
| Additional amount for a person living alone (single-parent family) | $2,431 |
| Amount for a severe and prolonged impairment in mental or physical functions | $3,815 |
| Amount for a person living alone | $1,969 |
| Age amount | $3,614 |
| Amount for retirement income | $3,211 |
| Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for career extension | $38,945 |
For 2023, the threshold for determining the method to be used to calculate the source deduction of income tax on gratuities and retroactive pay is $17,183.
For 2023, the maximum deduction for employment income is $1,315. The Source Deduction Table for Québec Income Tax (TP-1015.TI-V) takes the amount into account.
For 2023, the maximum exemption that can be granted to an emergency services volunteer is $1,315.
For 2023, you must withhold income tax at a rate of 15% from the portion of a disability assistance payment from a registered disability savings plan (RDSP) that exceeds $20,998.
The table below provides the Québec Pension Plan (QPP) data for 2023.
| QPP data | 2023 |
|---|---|
| Maximum pensionable earnings (pensionable salaries and wages) | $66,600 |
| Basic exemption | $3,500 |
| Maximum contributory earnings | $63,100 |
| Contribution rate | 6.40% |
| Employee's maximum contribution | $4,038.40 |
| Employer's maximum contribution (per employee) | $4,038.40 |
Additional QPP contributions
Starting January 1, 2023, employers have to include the amount that represents an employee's additional contributions to the QPP when they determine the remuneration that is subject to Québec income tax.
The Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V), the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) and WebRAS for 2023 have been modified to include the amount.
The table below provides the Québec parental insurance plan (QPIP) data for 2023.
| QPIP data | 2023 |
|---|---|
| Maximum insurable earnings | $91,000 |
| Employee's premium rate | 0.494% |
| Employee's maximum premium ($91,000 × 0.00494) | $449.54 |
| Employer's premium rate | 0.692% |
| Employer's maximum premium (per employee) ($91,000 × 0.00692) | $629.72 |
The table below shows the health services fund contribution rates for 2023, by total payroll. For this year, the total payroll threshold for eligibility for a reduction of the health services fund contribution rate is increasing from $7 million to $7.2 million.
| Total payroll (TP) | |||
|---|---|---|---|
| $1,000,000 or less | $1,000,001 to $7,199,999 | $7,200,000 or more | |
| Rates for employers whose total payroll is more than 50% attributable to activities in the primary and manufacturing sectors | 1.25% | 0.7645 + (0.4855 × TP/1,000,000)1 |
4.26% |
| Rates for all employers other than public sector employers and employers whose total payroll is more than 50% attributable to activities in the primary and manufacturing sectors | 1.65% | 1.2290 + (0.4210 × TP/1,000,000)1 |
4.26% |
| Rate for public sector employers | 4.26% | ||
- The result must be rounded off to two decimal places. If the number in the third decimal place is 5 or more, round up the number in the second decimal place.
Tax news
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