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Rates, thresholds and amounts related to source deductions and contributions for 2017
The rates, thresholds and amounts that apply to source deductions and contributions for 2017 are given below.
Indexation for 2017
Every year, the personal income tax system is automatically indexed. The indexation rate for 2017 is 0.74%.
Income tax rates and income thresholds
For 2017, the income tax rates applicable to the taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed. Specifically:
- the 16% rate applies to taxable income of $42,705 or less (previously $42,390);
- the 20% rate applies to taxable income of more than $42,705, but not more than $85,405 (previously $84,780);
- the 24% rate applies to taxable income of more than $85,405, but not more than $103,915 (previously $103,150);
- the 25.75% rate applies to taxable income of more than $103,915.
Source Deductions Return (form TP-1015.3-V)
The Source Deductions Return (form TP-1015.3-V) has been revised for 2017 to take into account the annual indexation of the amounts appearing on it.
The indexed amounts used to determine deduction codes for 2017 are shown in the table below. The figures for 2016 are provided for information purposes.
| 2017 | 2016 | |
|---|---|---|
| Basic amount | $11,635 | $11,550 |
| Amount transferred from one spouse to the other | $11,635 | $11,550 |
| Amount for other dependants who are 18 or older | $3,125 | $3,100 |
| Amount for a child under 18 enrolled in post-secondary studies | $2,145 | $2,130 |
| Additional amount for a person living alone (single-parent family) | $1,685 | $1,675 |
| Amount for a severe and prolonged impairment in mental or physical functions | $2,645 | $2,625 |
| Amount for a person living alone | $1,365 | $1,355 |
| Age amount | $2,505 | $2,485 |
| Amount for retirement income | $2,225 | $2,210 |
| Reduction threshold used to calculate the net family income (This income is used to calculate the age amount, the amount for a person living alone and the amount for retirement income.) | $33,755 | $33,505 |
| Indexation rate for 2017 | 0.74% |
Gratuities and retroactive pay
The threshold to determine the method to be used to calculate the source deduction of income tax from gratuities and retroactive pay has been increased from $14,450 to $14,550 for 2017.
Deduction for employment income
The maximum deduction for employment income has been increased from $1,130 to $1,140 for 2017.
Emergency services volunteer
The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,130 to $1,140 for 2017.
Québec Pension Plan Contributions
For 2017, the maximum pensionable earnings for the purpose of the Québec Pension Plan (QPP) have been increased from $54,900 to $55,300 and the QPP contribution rate has been increased from 10.65% to 10.80%, which corresponds to a contribution rate of 5.40% for the employee and 5.40% for the employer. The maximum annual contribution to be withheld for any employee has therefore been increased from $2,737.05 to $2,797.20.
Québec Parental Insurance Plan Premiums
For 2017, the maximum insurable earnings for the purpose of the Québec Parental Insurance Plan (QPIP) have been increased from $71,500 to $72,500. The employee premium rate is 0.548% and the employer premium rate is 0.767%. As a result, the maximum annual employee premium is $397.30 (instead of $391.82) and the maximum annual employer premium is $556.08 (instead of $548.41$).
Contribution related to labour standards
Effective January 1, 2017, the rate applicable to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is reduced from 0.08% to 0.07%.
Also, for 2017, the portion of the remuneration in excess of $72,500 (instead of $71,500) is not subject to the contribution related to labour standards.