2020 Quebec Marginal Tax Rates

How much you pay in income taxes in Quebec will depend on how much you make and how you make your money.  The most taxed earnings will be derived from labour, followed by capital gains or dividends depending on your marginal tax bracket.


Credit Card Nerd Math

For the after tax earning all we do is take a dollar and subtract the taxes paid at the marginal tax rates.  For example, for the first $48,535 earned you will keep 84 cents for every dollar earned.  $1 - ($1 x 15%) = $0.85.
    For the amount needed to save a dollar we took a dollar and divided it by the after tax earnings rate.  For example, someone with a $48,535 salary would get to keep 85 cents for every dollar earned and would need to earn $1.18 to take home a dollar.  $1/0.85 = $1.18, this is also the amount you effectively earn by saving a dollar at this marginal tax rate.
    Below we have a chart with the marginal tax rates, the amount of after tax earnings for every dollar earned, the amount you need to earn to take home a dollar and the capital gains tax rate.



2020 Quebec Marginal Tax Rates

Taxable Income

Tax Rate

$1 After Tax Earnings

Amount Needed to Net a $1

Capital Gains Tax Rate

first $48,535

15%

$0.85

$1.18

7.5%

over $48,535 up to $89,080

20%

$0.80

$1.25

10%

over $89,080 up to $108,390

24%

$0.76

$1.316

12%

over $108,390

25.75%

$0.743

$1.347

12.88%


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Refundable Quebec Rebatement: This credit will be 16.5% of your federal tax paid.  This reduces the equivalent marginal tax bracket on federal taxes in Quebec to 83.5% of the federal tax.



2020 Federal Marginal Tax Rates after the Refundable Quebec Rebatement

Taxable Income

Tax Rate

Capital Gains Tax Rate

first $48,535

12.53%

6.26%

over $48,535 up to $97,069

17.11%

8.56%

over $97,069 up to $150,473

21.71%

10.86%

over $150,473 up to $214,368

24.22%

12.11%

over $214,368

27.56%

13.78%


Federal Personal Amount: : For most Canadians, the first $13,229 in earnings are exempt from Federal taxes in 2020, but if you earn $150,473 or more, the basic amount is reduced.  It is reduced when you earn between $150,473 and $214,368.  If you earn more than $214,368 in taxable income, your basic personal amount would be $12,298.



Refundable Quebec Rebatement: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/440-eng.html
Provincial Tax Rates: Provincial Tax Rates 2020
Federal Tax Rates: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032ab/t4032ab-january-general-information.html#_Toc337712797
Federal Dividend Tax Credit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/425-eng.html