New for 2021
Tax credit for childcare expenses
Certain childcare expense limits have been increased. For a child with a severe and prolonged impairment in mental or physical functions, the limit has been increased from $13,445 to $14,230. For a child born after December 31, 2014, the limit has been increased from $9,825 to $10,400. The tax credit rate brackets have also been changed.
Furthermore, under a temporary measure in effect only for 2020 and 2021, you may be eligible for the tax credit for childcare expenses if you received Employment Insurance or COVID-19 benefits.
See the instructions for line 455.
Senior assistance tax credit
For individuals aged 70 or over on December 31, 2021, the maximum amount of the senior assistance tax credit has been increased from $206 to $400 in the case of an eligible individual, and from $412 to $800 in the case of a couple where both partners are eligible individuals.
See the instructions for line 463.
Tax credit for the treatment of infertility
Changes to the tax credit for the treatment of infertility apply in respect of expenses paid after November 14, 2021. They concern mainly the elimination of certain eligibility requirements and the limit on the number of in vitro fertilization cycles for which expenses are eligible, and the eligibility of expenses paid for certain artificial insemination treatments.
See point 11 in the instructions for line 462.
Deduction for residents of designated remote areas
Effective January 1, 2021, if you live in a designated remote area but do not receive any taxable benefits for trips provided by your employer, you can claim a deduction for trips of up to:
- $1,200 if you live in a northern zone; or
- $600 if you live in an intermediate zone.
See the instructions for line 236.
Disability supports deduction
Under a temporary measure in effect only for 2020 and 2021, the eligibility requirements for the disability supports deduction have been relaxed because of the ongoing COVID-19 crisis. If you have a disability and you received Employment Insurance benefits (including benefits related to a birth or adoption), Québec parental insurance plan benefits or COVID-19 benefits, you may be able to deduct some of your disability supports expenses.
See point 7 in the instructions for line 250.
Dividends from taxable Canadian corporations
Rate of the dividend tax credit
For 2021, the rate of the dividend tax credit applicable to the actual amount of ordinary dividends went from 5.4855% to 4.6115%.
See the instructions for line 415.
Tax credits for Capital régional et coopératif Desjardins shares
Tax credit for the acquisition of Capital régional et coopératif Desjardins shares
The rate of the tax credit for the acquisition of Capital régional et coopératif Desjardins shares went from 35% to 30% for shares acquired after February 28, 2021.
Tax credit for the exchange of Capital régional et coopératif Desjardins shares
Two new conversion periods have been added. The first starts on March 1, 2021, and ends on February 28, 2022, and the second starts on March 1, 2022, and ends on February 28, 2023.
Tax credit for taxi drivers and taxi owners
The new legal framework for remunerated passenger transportation that came into force on October 10, 2020, resulted in changes to the tax credit for taxi drivers and taxi owners.
See point 3 in the instructions for line 462.
Tax credit for an on-the-job training period
The base rates for the tax credit for an on-the-job training period have been increased for qualified expenditures incurred after March 25, 2021, but before May 1, 2022, in respect of a qualified training period beginning after March 25, 2021.
See point 7 in the instructions for line 462.
Tax credit for volunteer respite services and tax credit for respite of caregivers
Because of the changes to the tax credit for caregivers, the tax credit for volunteer respite services and the tax credit for respite of caregivers were cancelled as of January 1, 2021.
Québec prescription drug insurance plan
For the period from January 1 to June 30, 2021, the contribution rates for the Québec prescription drug insurance plan were increased, and the maximum premium was raised from $648 to $662. For the period from July 1 to December 31, 2021, the contribution rates were increased, and the maximum premium was raised from $662 to $710. The maximum premium for 2021 is therefore $686.
You do not have to pay a premium if any of the following situations apply to you:
- You did not have a spouse on December 31, 2021, and the amount on line 275 of your return is $16,940 or less.
- You had a spouse on December 31, 2021, and the amount on line 275 of your return plus the amount on line 275 of your spouse's return totals $27,460 or less.
- You were born before January 1, 1956, and the total of your monthly Guaranteed Income Supplement (GIS) payments is at least 94% of the maximum for the year calculated without the top-up benefit.
Full indexation of the tax system
A number of other amounts have been increased, including the following:
- the deduction for workers (line 201);
- the basic personal amount (line 350);
- the income thresholds at which certain tax credits are reduced;
- the amount for a person living alone (line 20 of Schedule B);
- the age amount (line 22 of Schedule B); and
- the basic exemption for calculating the contribution to the health services fund (Schedule F).