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.

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.

The personal tax credit amounts on the Source Deductions Return (TP 1015.3-V) are indexed for 2024.

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.

The maximum deduction for employment income is $1,380 for 2024.

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).

The maximum exemption that can be granted to an emergency services volunteer is $1,380 for 2024.

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.

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).

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.

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.

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. 

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.

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. 

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.