2024-02-17 05:00:00
In Quebec, the vast majority of taxpayers have the impression of paying too much taxes, both provincially and federally. Yet two million Quebec taxpayers do not pay a cent in tax.
There is no doubt that relatively high-income taxpayers are right to say that they pay a lot of taxes. But it’s a lot less obvious when we’re talking about low- and middle-income taxpayers.
For what? Because they benefit from a range of deductions, refundable tax credits, allowances… which have the effect of considerably reducing their tax bill, even going so far as to cancel it completely, depending on their situation. family.
The different thresholds
As proof, here are the multiple income thresholds below which, depending on the various family situations, taxpayers will not ultimately pay a “black cent” in tax to governments, once deductions are taken into account, refundable tax credits, various allowances obtained from both levels of government.
It is based on the disposable income calculation tool set up by the Quebec Ministry of Finance that I established these maximum gross income thresholds.
What’s more, you should know that below these thresholds, taxpayers will find themselves with disposable income greater than the gross income they declared. The government assistance they receive will exceed their gross income.
Among those under 65
For households under 65, the maximum thresholds of tax-free gross work income after deductions, tax credits and allowances obtained are:
- A person living alone: $24,979
- A couple without children, with two equal incomes: total $45,809
- A single-parent family, a child under 6 years old: $53,215
- A single-parent family, two children aged 6; 6 to 16 years old: $65,960
- A couple, two equal incomes, a child under 6 years old: total $58,038
- A couple, two equal incomes, two children aged 6; 6 to 16 years old: total $72,096
Retirees
Among retirees aged 65 and over, the maximum gross income thresholds (pensions, RRSP, QPP) without having to pay a cent in taxes are significantly higher.
- Single retiree with retirement income, 65 to 69 years old: $46,436
- Single retiree with retirement income, ages 70 to 74: $47,471
- Single retiree with retirement income, age 75 and over: $48,281
- Retired couple, two equal retirement incomes, 65 to 69 years old: total $86,173
- Retired couple, two equal retirement incomes, 70 to 74 years old: total $88,187
- Retired couple, two equal retirement incomes, 75 years and over: $90,671
Retirees with work income
Now regarding retirees aged 65 and over who declare work income in addition to their retirement income (pensions, RRSP, Quebec Pension Plan, RRQ), the maximum thresholds are higher than those who only report income. of retirement.
For what?
Because they benefit from a tax credit for career extension, a worker deduction and the Canadian employment amount.
First example, let’s take a retiree aged 65 to 69 who lives alone. He could declare a total gross income of $48,575 without having to pay a cent to the tax authorities if said gross income was composed of retirement income of $30,000 and work income of $18,575.
Second example: a retired couple aged 65 to 69, each of whom declares a retirement income of $30,000 and a work income of $15,926, for a family total of $91,852. Well, with that kind of income, this couple would keep all of their gross income.
If retirees are 70 years old and over and they declare work income in addition to their retirement income, the maximum tax-free thresholds will be slightly higher due to additional tax advantages linked to their age.
Seniors without income
Seniors who receive no retirement or work income benefit from a minimum government income thanks to financial assistance from Quebec (solidarity credit, housing allowance, support for seniors) and Ottawa (GST credit, old age pension and guaranteed income supplement).
Here, in the table below, are the maximum amounts granted by the two governments to the least well-off seniors, depending on their family situation.
Households without any income
In Quebec, households without work or retirement income fortunately benefit from minimal financial assistance from governments.
See what it is in the table below.
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