Perspectives
Quebec follows Ontario’s lead in raising taxes on the “well off”
Quebec implements a fourth tax bracket
Following Ontario’s lead, Quebec has introduced a new tax that targets the wealthiest individuals in that province. Effective for the 2013 taxation year, a fourth bracket has been added to the personal income tax table for income over $100,000. This income will be taxed at the rate of 25.75%, representing an increase of 1.75%. This new tax will bring the top combined federal/Quebec marginal rate to 49.97%.
The following table illustrates how this increase compares to a sample of 2013 top tax rates on ordinary income in other provinces:
Top combined marginal tax rates for 2013 |
||||
---|---|---|---|---|
British Columbia | Alberta | Ontario1 | Quebec | |
Ordinary income | 43.70% | 39.00% | 49.53% | 49.97% |
Note: This table shows the highest combined tax rates (federal and provincial) on ordinary income.
1 For Ontario, the indicated rate applies to taxable income over $500,000. The combined rate in Ontario on taxable income between $132,406 and $500,000 is 46.41%.