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%.

David Bilodeau is a Senior Manager at our Sherbrooke office. He has over 15 years of experience in tax consulting including reorganizations and shareholder agreements for all kinds of companies. He is a Senior Manager in our Sherbrooke office where he supervises the multidisciplinary tax team.

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