New Refundable Cost of Living Tax Credit
A new refundable cost of living tax credit has been created to help taxpayers in Québec deal with the rising cost of living caused by constantly increasing inflation. It will be paid out to all eligible individuals who file their income tax return for 2021 by June 30, 2023, and whose net income for 2021 is less than $104,000.
If you were receiving last-resort financial assistance on December 31, 2021, and you are receiving the basic amount of the QST component of the solidarity tax credit for the period from July 1, 2022, to June 30, 2023, you do not have to file an income tax return to receive the new credit.
Eligibility
To be eligible, you must have met the following requirements on December 31, 2021:
- You were 18 or over or, if you were under 18, you:
- were the father or mother of a child who lived with you; or
- were recognized as an emancipated minor by a competent authority (such as a court).
- You were resident in Québec.
- You were:
- a Canadian citizen;
- permanent resident or a protected person within the meaning of the Immigration and Refugee Protection Act; or
- a temporary resident or the holder of a temporary resident permit within the meaning of the Immigration and Refugee Protection Act who had been living in Canada for the last 18 months.
If you were 18 on December 31, 2022, you will be considered eligible if you meet the other requirements.
However, you are not eligible if either of the following situations applies to you:
- You were confined to a prison or similar institution on August 31, 2022, and, in 2022, you were confined for one or more periods totalling more than 120 days before September 1.
- You were exempt from income tax in 2021.
Individuals who died before September 1, 2022, are not eligible.
| Net income for 2021 | Credit | Note |
|---|---|---|
| $50,000 or less | $600 | |
| $50,000 to $54,000 | $400 to $599.99 | The credit is reduced by 5% of your income over $50,000. |
| $54,000 to $100,000 | $400 | |
| $100,000 to $104,000 | $0 to $399.99 | The credit is reduced by 10% of your income over $100,000. |
| More than $104,000 | $0 |
Examples
If your net income is $52,000, the credit will be calculated as follows: $600 − [5% × ($52,000 − $50,000)] = $500. You will therefore receive a $500 credit.
If your net income is $102,000, the credit will be calculated as follows: $400 − [10% × ($102,000 − $100,000)] = $200. You will therefore receive a $200 credit.
We cannot apply your credit to the payment of a debt. Even if you have an outstanding balance, you will receive the full amount you are entitled to.
Receiving the credit
You do not have to claim the new credit. If you are eligible (see above), your net income for 2021 is less than $104,000 and your income tax return for 2021 is processed by November 9, 2022, you will receive the credit automatically by direct deposit or cheque as early as December 2022.
If your return is processed after November 9, 2022, but before June 30, 2023, you will receive the credit after we issue your notice of assessment.
If you are registered for direct deposit, you will receive a notice in My Account for individuals when your credit is deposited.
If you are not registered for direct deposit, we will mail a cheque to the address we have on file.
Credits of less than $2 will not be paid.
Questions?
To learn more about the new credit, see our FAQ and information bulletin 2022-6 on the Ministère des Finances website.