In Quebec, the vast majority of taxpayers feel they pay too much in taxes, both at the provincial and federal levels. Yet two million taxpayers in Quebec don't pay a penny in taxes.
There is no doubt that relatively high-income taxpayers are right when they say they pay a lot of taxes. But it's much less obvious when we talk about low- and middle-income taxpayers.
For what? Because they benefit from a range of deductions, refundable tax credits, allowances, etc., which, depending on the situation, result in their tax burden being significantly reduced and even eliminated altogether. Family.
The different thresholds
The evidence here is the various income thresholds below which taxpayers, depending on their family situation, ultimately do not pay a single “black cent” in taxes to the state when one takes into account deductions, refundable tax credits and various allowances from both levels of government.
I set these maximum gross income thresholds based on the disposable income calculation tool established by the Quebec Ministry of Finance.
- Listen to the economy part with Michel Girard above QUB :
Additionally, you should know that taxpayers below these thresholds have disposable income that exceeds their reported gross income. The government support they receive will exceed their gross income.
Among those under 65 years old
For households under 65 years of age, the maximum limits of tax-free gross employment income after deductions, tax credits and allowances received are:
- A person living alone: $24,979
- A couple with no children, with two equal incomes: total $45,809
- A family with only one parent, one child under 6: $53,215
- A single-parent family, two children aged 6; 6 to 16 years old: $65,960
- A couple, two people with equal income, one child under 6: total $58,038
- A couple, two equal incomes, two children aged 6; 6 to 16 years: total $72,096
Pensioner
For retirees aged 65 and over, the maximum gross income limits (pensions, RRSP, QPP) without having to pay a cent of taxes are significantly higher.
- Single retiree with retirement income, ages 65 to 69: $46,436
- Single retiree with retirement income ages 70 to 74: $47,471
- Single retiree with retirement income, age 75 and older: $48,281
- Retired couple, two equal retirement incomes, ages 65 to 69: total $86,173
- Retired couple, two equal retirement incomes, ages 70 to 74: total $88,187
- Retired married couple, two equal retirement incomes, ages 75 and older: $90,671
Pensioners with earned income
For retirees aged 65 and over who declare earned income in addition to their retirement income (pensions, RRSP, Quebec Pension Plan, RRQ), the limits are higher than for those who only declare their retirement income.
For what?
This is because they benefit from a career extension tax credit, an employee tax credit and the Canadian employment allowance.
As a first example, let's take a pensioner aged 65 to 69 who lives alone. He could report total gross income of $48,575 without having to pay a penny to the tax authorities if that gross income was made up of retirement income of $30,000 and employment income of $18,575.
Second example: a retired couple ages 65 to 69 who each report retirement income of $30,000 and working income of $15,926, for a family total of $91,852. Well, with that income, this couple would keep all of their gross income.
If pensioners have reached the age of 70 and declare employment income in addition to their retirement income, the maximum allowances are slightly higher due to age-dependent additional tax advantages.
Seniors without income
Seniors who do not receive retirement or work income benefit from a state minimum income thanks to financial support from Quebec (solidarity credit, housing benefit, support for seniors) and Ottawa (GST credit, old age pension and guaranteed income supplement).
The following table shows the maximum amounts that the two governments grant to the least well-off seniors, depending on their family situation.
Households without income
In Quebec, households without work or retirement income fortunately benefit from minimal government financial support.
See what it is in the table below.
