Published | Category : Income tax - individuals
General Reduction in Personal Income Tax as of the 2023 Taxation Year
In the budget speech on March 21, 2023, the Minister of Finance of Québec announced a decrease in the tax rates applicable to the first two taxable income brackets of the personal income tax table. As of the 2023 taxation year, the rates will decrease:
- from 15% to 14% for taxable income up to $49,275;
- from 20% to 19% for taxable income over $49,275 but not exceeding $98,540.
So that individuals can benefit from this tax cut in the 2023 taxation year, adjustments will be made to the methods of calculating source deductions of income tax that must be made on salaries and wages and on certain other amounts paid after June 30, 2023.
Instalment payments
To account for the general tax reduction for the 2023 taxation year, individuals who must pay their income tax in instalments can adjust the amount of their payments due after March 15, 2023, according to the usual rules.
Changes to personal tax credits
Decrease in the conversion rate
Starting the 2023 taxation year, the conversion rate for the amounts used to calculate personal tax credits will drop from 15% to 14%, which corresponds to the new rate applicable to the first taxable income bracket of the personal income tax table.
Increase in amounts granted for the purpose of calculating certain personal tax credits
As of the 2023 taxation year, the amounts granted for the purpose of calculating the personal tax credits in the table below have been increased.
| Type of amount | Amount granted (before budget) | Income tax reduction at 15% conversion rate (before budget) | Amount granted (after budget) | Income tax reduction at 14% conversion rate (after budget) |
|---|---|---|---|---|
| Amount for a child under 18 enrolled in post-secondary studies (per term) | $3,301 | $495 | $3,537 | $495 |
| Amount for other dependants | $4,810 | $722 | $5,154 | $722 |
| Amount transferred by a child 18 or over enrolled in post-secondary studies | $11,795 | $1,769 | $12,638 | $1,769 |
| Reduction in the amount transferred by a child 18 or over enrolled in post-secondary studies when only term has been completed | $3,301 | $495 | $3,537 | $495 |
For more information, see Additional Information on the 2023-2024 Budget (PDF – 1,566 KB) on the Ministère des Finances website.