Quebec’s residents benefit from annual tax relief despite hikes in daycare and driver’s licence fees Quebec’s residents benefit from annual tax relief despite hikes in daycare and driver’s licence fees

Quebec’s residents benefit from annual tax relief despite hikes in daycare and driver’s licence fees
17 Jan 2018

The province’s government has followed through on promises first made in November.

Although Quebec residents will see daycare rates and driver’s licence fees rise this year, they will also receive some annual tax relief.

According to CBC, workers earning less than CAN$42,705 (US$34,395) will get a bit more back when filing their income taxes thanks to changes first announced in November. Annual tax relief will range from CAN$278 (US$224) for individuals to CAN$756 (US$609) for a family of four with a combined income of CAN$88,000 (US$70,875). 

The relief includes a reduction in the lowest tax rate on earned income, which will drop from 16% to 15%. Parents will also see a CAN$100 (US$80.54) per child supplement for school supplies.

Other changes

  • License and registration: Quebecers who hold a driver's permit for a passenger vehicle will pay CAN$1.05 (US$0.85) more. As of 2018, the annual cost will come to a total of CAN$84.29 (US$67.89). People with motorcycle licenses will have to pay CAN$91.33 (US$73.56), up by around a dollar. Registration rates are also increasing;
  • Daycare fees: Although from April to December 2017, the daycare base rate of CAN$7.75 (US$6.24) remained in effect, fees are rising this year. Families will now have to pay CAN$0.30 extra if subject to the base amount of CAN$8.05 (US$6.48) per day per child. Families earning between CAN$51,340 ($41,349) and CAN$77,005 (US$62,020) will pay CAN$8.75 (US$7.05) per day, an increase of CAN$0.75. Those who earn more than CAN$165,005 (US$132895) will see the highest jump, from CAN$13.90 (US$11.20) to CAN$21.95 (US$17.68) per day;
  • Health tax: The Liberal government has abolished health tax contributions, which meant that in 2017, Quebecers earning less than CAN$134,095 (US$108,000) did not have to pay their 2016 contribution, saving between CAN$50 (US$40.27) and CAN$175 (US$140.94). This season, Quebecers above this tax bracket will not have to pay either;
  • Transit fees: In Montreal, public transit user fees are not going up — at least for now. Under the Réseau de Transport Métropolitain (RTM), single-fare and monthly pass rates will also remain the same for commuters who take the train to and from Montreal;
  • Electricity: Hydro-Québec has applied to the province's energy boards to raise its rates by 1.1%. If approved, the increase means customers will pay about CAN$2.20 (US$1.77) per month for a medium-sized home.

The province’s government has followed through on promises first made in November.

Although Quebec residents will see daycare rates and driver’s licence fees rise this year, they will also receive some annual tax relief.

According to CBC, workers earning less than CAN$42,705 (US$34,395) will get a bit more back when filing their income taxes thanks to changes first announced in November. Annual tax relief will range from CAN$278 (US$224) for individuals to CAN$756 (US$609) for a family of four with a combined income of CAN$88,000 (US$70,875). 

The relief includes a reduction in the lowest tax rate on earned income, which will drop from 16% to 15%. Parents will also see a CAN$100 (US$80.54) per child supplement for school supplies.

Other changes

  • License and registration: Quebecers who hold a driver's permit for a passenger vehicle will pay CAN$1.05 (US$0.85) more. As of 2018, the annual cost will come to a total of CAN$84.29 (US$67.89). People with motorcycle licenses will have to pay CAN$91.33 (US$73.56), up by around a dollar. Registration rates are also increasing;
  • Daycare fees: Although from April to December 2017, the daycare base rate of CAN$7.75 (US$6.24) remained in effect, fees are rising this year. Families will now have to pay CAN$0.30 extra if subject to the base amount of CAN$8.05 (US$6.48) per day per child. Families earning between CAN$51,340 ($41,349) and CAN$77,005 (US$62,020) will pay CAN$8.75 (US$7.05) per day, an increase of CAN$0.75. Those who earn more than CAN$165,005 (US$132895) will see the highest jump, from CAN$13.90 (US$11.20) to CAN$21.95 (US$17.68) per day;
  • Health tax: The Liberal government has abolished health tax contributions, which meant that in 2017, Quebecers earning less than CAN$134,095 (US$108,000) did not have to pay their 2016 contribution, saving between CAN$50 (US$40.27) and CAN$175 (US$140.94). This season, Quebecers above this tax bracket will not have to pay either;
  • Transit fees: In Montreal, public transit user fees are not going up — at least for now. Under the Réseau de Transport Métropolitain (RTM), single-fare and monthly pass rates will also remain the same for commuters who take the train to and from Montreal;
  • Electricity: Hydro-Québec has applied to the province's energy boards to raise its rates by 1.1%. If approved, the increase means customers will pay about CAN$2.20 (US$1.77) per month for a medium-sized home.

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