Deduction for Residents of Designated Remote Areas – Recognition of the Îles-de-la-Madeleine as a Northern Zone
To recognize that the cost of living in certain areas is higher than elsewhere because of their remote location, the tax system grants residents of these areas a special deduction in the calculation of their income.
The amount of the deduction an individual can claim depends on where the individual lives. The deduction is granted in full to residents of northern zones but is reduced by 50% for residents of intermediate zones.
The Îles-de-la-Madeleine are currently considered an intermediate zone. As of the 2017 taxation year, they will be considered a northern zone.
For more information, see pages A.22 and A.23 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.