Principal Changes for 2024
The calculation changes for source deductions and contributions for 2024 relating to tax changes announced before November 1, 2023, are listed below. For information about tax changes announced after October 31, 2023, read the Tax News articles published after that date.
Indexation
The personal income tax system is indexed at 5.08% for 2024.
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.
Income tax rates and income thresholds
The taxable income thresholds have been indexed; however, the income tax rates remain unchanged for 2024. The rates are:
- 14% for taxable income up to $51,780;
- 19% for taxable income over $51,780 but not more than $103,545;
- 24% for taxable income over $103,545 but not more than $126,000;
- 25.75% for taxable income over $126,000.
Personal tax credit amounts
The personal tax credit amounts on the Source Deductions Return (TP 1015.3-V) are indexed for 2024.
Basic personal amount |
$18,056 |
Amount transferred from one spouse to the other |
$18,056 |
Amount for other dependants |
$5,416 |
Amount for a child under 18 enrolled in post-secondary studies (per term) |
$3,717 |
Additional amount for a person living alone (single-parent family) |
$2,554 |
Amount for a severe and prolonged impairment in mental or physical functions |
$4,009 |
Amount for a person living alone |
$2,069 |
Age amount |
$3,798 |
Amount for retirement income |
$3,374 |
Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for career extension |
$40,925 |
Gratuities and retroactive pay
The threshold for determining the method to be used to calculate the source deduction of income tax on gratuities and retroactive pay is $18,056 for 2024.
Deduction for employment income
The maximum deduction for employment income is $1,380 for 2024.
Deduction of additional Québec Pension Plan (QPP) contributions
Effective January 1, 2024, the first additional QPP contribution and the second additional QPP contribution must be deducted from remuneration subject to Québec income tax for each pay period. For details, see the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).
Emergency services volunteer
The maximum exemption that can be granted to an emergency services volunteer is $1,380 for 2024.
Disability assistance payments from a registered disability savings plan (RDSP)
For 2024, you must withhold income tax at a rate of 14% from the taxable portion of a disability assistance payment from an RDSP that exceeds $22,065.
First home savings account (FHSA)
Contribution to an FHSA
You must subtract an employee's contribution to an FHSA from the employee's gross remuneration for the pay period if you have reasonable grounds to believe that the contribution is deductible in calculating the employee's income for the year.
Payment out of an FHSA
You must withhold income tax on a payment out of an FHSA if the payment must be included in calculating the individual's income for the year in which the payment is received. You must also withhold income tax on a payment under an arrangement that ceases to be an FHSA.
Benefit related to an FHSA contribution
The value of a taxable benefit enjoyed by an employee in relation to a contribution that you make to an FHSA on the employee's behalf is subject to source deductions and employer contributions. For more information, see Taxable Benefits (IN-253-V).
For more information, see the First Home Savings Account (FHSA) page on the Government of Canada website.
Québec Pension Plan (RRQ) contributions
Second additional QPP contribution
Effective January 1, 2024, you must withhold the second additional QPP contribution from the portion of an employee's pensionable salary or wages that exceeds the maximum pensionable earnings under the QPP for the year, up to the additional maximum pensionable earnings under the QPP for the year. The second additional contribution is withheld at a rate of 8% per year (shared equally by the employee and the employer). The amount of the additional maximum pensionable earnings is equal to 107% of the maximum pensionable earnings for 2024 and to 114% of the maximum pensionable earnings for 2025 and subsequent years.
Maximum pensionable earnings |
$68,500 |
Basic exemption |
$3,500 |
Maximum contributory earnings |
$65,000 |
Contribution rate (base contribution rate of 5.40% and first additional contribution rate of 1%) |
6.40% |
Employee's maximum contribution |
$4,160 |
Employer's maximum contribution (per employee) |
$4,160 |
Additional maximum pensionable earnings ($68,500 × 107%) |
$73,200 |
Maximum pensionable earnings |
$68,500 |
Additional maximum contributory earnings ($73,200 – $68,500) |
$4,700 |
Second additional contribution rate |
4% |
Employee's maximum second additional contribution |
$188 |
Employer's maximum second additional contribution (per employee) |
$188 |
Employee 60 or older who receives a disability pension under the QPP
As a rule, you must withhold employee QPP contributions from an employee's pensionable salary or wages up to and including the month that includes the date (set by Retraite Québec) on which the employee becomes disabled.
However, effective January 1, 2024, you must withhold the contributions from an employee 60 or older who receives a salary or wages and also both a disability pension and a QPP retirement pension.
If the employee starts receiving a retirement pension or is no longer considered disabled by Retraite Québec, you must begin withholding QPP contributions from the employee's pensionable salary or wages as of the month in which the employee starts receiving the retirement pension−even if the employee also receives a disability pension−or as of the month after the month in which the employee stopped receiving a disability pension.
Employee 65 or older who elects to stop contributing to the QPP
Effective January 1, 2024, an employee 65 or older but under 73 at the end of the year who receives a QPP or Canada Pension Plan (CPP) retirement pension can elect to stop contributing to the QPP by giving you form RR-50-V, Election to Stop Contributing to the Québec Pension Plan, or Revocation of an Election. For more information, see the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).
Employee who turns 73 in the year
Effective January 1, 2024, you are no longer required to withhold employee QPP contributions as of January 1 of the year an employee turns 73.
Québec parental insurance plan (QPIP) premiums
Maximum insurable earnings |
$94,000 |
Employee's premium rate |
0.494% |
Employee's maximum premium ($94,000 × 0.00494) |
$464.36 |
Employer's premium rate |
0.692% |
Employer's maximum premium (per employee) ($94,000 × 0.00692) |
$650.48 |
Contribution to the health services fund
The table below shows the health services fund contribution rates for 2024, 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 $7.2 million to $7.5 million.
Contribution rates |
Total payroll (TP) of $1,000,000 or less |
Total payroll (TP) of $1,000,001 to $7,499,999 |
Total payroll (TP) of $7,500,000 or more |
---|---|---|---|
Rates for employers whose total payroll is more than 50% attributable to activities in the primary and manufacturing sectors |
1.25% |
0.7869 + (0.4631 × TP ÷ 1,000,000) |
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% |
1.2485 + (0.4015 × TP ÷ 1,000,000) |
4.26% |
Rate for public sector employers |
4.26% |
Administrative policy on determining the province of employment for Québec source deductions and employer contributions
As of January 1, 2024, if an employee does not physically report for work at one of your establishments, we consider that they are reporting for work at one of your establishments if they are “attached” to the establishment, in accordance with our administrative policy. An employee is attached to one of your establishments if both the following conditions are met:
- A temporary or permanent work agreement allows the employee to work full-time remotely from a location that is not one of your establishments (you and employee must be able to justify that such an agreement was made).
- The employee is reasonably considered to be attached to one of your establishments.
For the purposes of this policy, “employee” means teleworkers as well as employees who never have to report for work at any of your establishments (such as travelling representatives).
This policy does not apply if the employee is not considered to be working full-time remotely or if they are not considered to be attached to one of your establishments.
For more information, see the tax news article entitled Administrative Policy on Determining the Province of Employment for Québec Source Deductions and Employer Contributions.
New obligation for payments and remittances of more than $10,000
As of January 1, 2024, your must make your payments and remittances electronically (for example, online or through a financial institution) if the amount is more than $10,000, unless there is a specific reason you are unable to pay or remit the amount electronically. A penalty may apply if you do not remit the amount electronically.
Mandatory online filing of RL slips
Effective January 1, 2024, if you are filing more than 5 RL-1, RL-2, RL-25 or RL-32 slips, you must file them online using software we have authorized (in an XML file) or the online services in My Account for businesses.
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