Published | Category : Income tax - individuals
New Refundable Cost of Living Tax Credit
As announced by the Ministère des Finances, 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 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.
Eligibility is based on your situation on December 31, 2021. Generally speaking, you must have been 18 or over, been resident in Québec and had an eligible residency status. If you turned 18 in 2022, you will be considered eligible if you meet the other requirements.
| Net income for 2021 | Amount of the credit |
|---|---|
| $50,000 or less | $600 |
| $50,000 to $54,000 | $400 to $599.99 (reduced by 5% of your income over $50,000) |
| $54,000 to $100,000 | $400 |
| $100,000 to $104,000 | $0 to $399.99 (reduced by 10% of your income over $100,000) |
Payment of the credit
The credit will be paid out to eligible individuals automatically. You do not need to claim it. If you file your 2021 income tax return by November 9, 2022, your credit will be paid out as early as December. If you file after that date (but before June 30, 2023), your credit will be paid out when your return is processed.
For more information, click New Refundable Cost of Living Tax Credit or see information bulletin 2022-6 on the Ministère des Finances website.