Refundable Cost of Living Tax Credit
What is the tax credit for?
On November 9, 2022, the Ministère des Finances du Québec announced the creation of a cost of living tax credit to help individuals who face an ever-rising cost of living caused by inflation. In January 2024, the Ministry announced an extension of the deadline for receiving the tax credit to allow more people to benefit from it.
Who is the tax credit for?
The tax credit is for all eligible individuals who file their 2021 income tax return by June 30, 2024, and whose net income for 2021 is less than $104,000. If you and your spouse are eligible, you will both receive the credit based on your individual incomes.
If you were receiving last-resort financial assistance on December 31, 2021, and you received the basic amount of the QST component of the solidarity tax credit for the period from July 1, 2022, to June 30, 2023, the credit has already been paid to you. You did not have to file an income tax return to receive the credit.
Are you eligible for the tax credit?
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.
How is the tax credit calculated?
The cost of living tax credit is paid in full even if you owe tax or income tax. Furthermore, the credit amount is not taxable.
We do not pay tax credits less than $2.
The table below gives the amount of the credit based on your situation.
|
Net income for 2021 |
Credit |
Note |
|---|---|---|
|
$50,000 or less |
$600 |
N/A not applicable |
|
$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 |
N/A not applicable |
|
$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 |
N/A not applicable |
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.
When and how will the tax credit be paid?
For most people, this tax credit was paid in November and December 2022. You do not have to claim this tax credit. Eligible individuals who filed their 2021 income tax return from July 1, 2023, to January 31, 2024, will receive the credit by February 29, 2024. Likewise, eligible individuals who file their 2021 income tax return from February 1 to June 30, 2024, will receive the credit by September 30, 2024.
If you are registered for direct deposit, you will receive a notice in My Account and by mail 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.