Quebec Income Tax 2025: Two Tax Returns, QPP, and the Federal Abatement

Quebec is the only province in Canada that collects its own income tax. That single fact changes almost everything about how taxes work for Quebec residents — from the number of returns you file to the payroll deductions on your paycheque to the credits and programs available to you. If you have moved to Quebec from another province, the system can feel like a different country.

Here is how Quebec income tax works for the 2025 tax year, and what you need to know before filing.

You File Two Tax Returns

Every other province in Canada has one tax return. The CRA calculates your federal and provincial tax together, sends you one assessment, and you are done.

Quebec is different. You file one return with the CRA for your federal tax and a separate return with Revenu Québec for your provincial tax. Two returns, two agencies, two assessments, potentially two refunds (or two balances owing) deposited or charged at different times.

This sounds like a headache, and honestly, it can be. But modern tax software handles most of the complexity. Wealthsimple Tax, TurboTax, and other certified products generate both returns simultaneously from the same data entry. You file the federal return through NETFILE and the Quebec return through Revenu Québec’s equivalent system. The key is making sure you actually submit both — missing the Quebec return is a common mistake for first-time filers in the province.

Calculate your Quebec tax —>

The 16.5% Federal Abatement

Because Quebec collects its own income tax, the federal government gives Quebec residents a 16.5% reduction on their basic federal tax. This is called the Quebec abatement.

Here is how it works: after your federal tax is calculated (using the same federal brackets as everyone else), it is reduced by 16.5%. So if your federal tax would normally be $10,000, you pay $8,350 instead. The $1,650 difference is meant to offset the higher provincial tax you pay directly to Revenu Québec.

The abatement does not make Quebec a low-tax province. It simply prevents double-taxation at a level that would be completely untenable. Even after the abatement, Quebec residents generally pay more total income tax than residents of most other provinces at the same income level.

Quebec Provincial Brackets

Quebec’s 2025 provincial tax brackets:

Taxable Income	Quebec Rate
Up to $51,780	14%
$51,780 to $103,545	19%
$103,545 to $126,000	24%
Over $126,000	25.75%

The starting rate of 14% is notably higher than Alberta’s 10% or BC’s 5.06%. And the top provincial rate of 25.75% kicks in at just $126,000 — a much lower threshold than most provinces. For comparison, Alberta’s top rate of 15% does not apply until income exceeds $355,845.

Quebec’s basic personal amount is $18,571 for 2025. That is higher than the federal BPA of $16,129, but well below Alberta’s $22,323.

QPP Instead of CPP

Quebec does not participate in the Canada Pension Plan. Instead, it runs the Quebec Pension Plan (QPP), administered by Retraite Québec. The concept is similar — mandatory pension contributions from employment and self-employment income — but the rates are different.

For 2025:

• QPP employee rate: 6.40% on pensionable earnings between $3,500 and $71,300
• CPP employee rate (rest of Canada): 5.95% on the same range

That is a 0.45 percentage point difference. On maximum pensionable earnings, a Quebec employee pays roughly $320 more per year toward their pension than someone in Ontario or BC.

Self-employed Quebecers pay both halves: 12.80% total, compared to 11.9% for self-employed workers in other provinces.

The enhanced QPP2 also applies on earnings between $71,300 and $81,200, similar to CPP2 in the rest of Canada.

See your QPP contributions broken down —>

QPIP: Quebec’s Parental Insurance

Quebec runs its own parental insurance program called QPIP (Quebec Parental Insurance Plan), which is separate from EI. QPIP covers maternity, paternity, parental, and adoption benefits. Because QPIP exists, Quebec residents pay a reduced EI premium rate.

For 2025:

• QPIP employee rate: approximately 0.494%
• QPIP employer rate: approximately 0.692%
• QPIP self-employed rate: approximately 0.878%

And for EI:

• Quebec EI employee rate: 1.32%
• Rest of Canada EI rate: 1.64%

The lower EI rate partly offsets the QPIP premium, but not entirely. Quebec workers pay a bit more in total payroll deductions when you add QPP plus QPIP plus reduced EI versus CPP plus full EI in other provinces. The trade-off is that QPIP generally offers more generous parental benefits than the federal EI program, including paternity-specific leave that did not exist federally until recently.

How Quebec Compares on Total Tax

At a salary of $75,000 with no deductions beyond the basics:

• Quebec: ~$17,800 total income tax
• Ontario: ~$16,200
• Alberta: ~$15,100

Quebec is the highest of the three, even after the 16.5% federal abatement. Add in the higher QPP and QPIP payroll deductions, and the gap in take-home pay widens further.

At higher incomes, the gap grows. Quebec’s top combined marginal rate (federal plus provincial) exceeds 53%, putting it among the highest in the country alongside Ontario.

Quebec Credits That Offset the Higher Rates

Quebec does offer several provincial credits and programs that reduce the net burden for certain groups:

• Solidarity tax credit — A refundable credit for low and moderate-income earners that combines the QST credit, housing component, and Northern Quebec component into a single quarterly payment.

• Work premium — A refundable credit designed to encourage people to enter or stay in the workforce. It supplements employment income for low-income workers.

• Subsidized childcare — While not a tax credit, Quebec’s $8.85/day (approximately) daycare program can save families thousands of dollars annually compared to market-rate childcare in other provinces. This is a real financial offset that does not appear on your tax return but absolutely affects your household budget.

• Quebec prescription drug insurance — Quebec requires all residents to have prescription drug coverage, either through an employer plan or the public plan (RAMQ). The public plan premium is income-tested and charged on your tax return, but it provides coverage that residents of other provinces may need to purchase privately.

Run your Quebec tax calculation —>

Filing Tips for Quebec

A few things to keep in mind:

Deadlines are the same. April 30, 2026 for the 2025 tax year (June 15 for self-employed, but amounts owing are due April 30). This applies to both your federal and Quebec returns.

Use certified software. Revenu Québec maintains its own list of approved software for online filing. Most major products are certified for both federal and Quebec.

Check both assessments. You will receive a notice of assessment from the CRA and a separate one from Revenu Québec. They can arrive at different times, and the amounts may not match your expectations because each agency processes independently.

RL slips, not T slips. Quebec employers issue Relevé (RL) slips in addition to federal T4s. Your RL-1 is the Quebec equivalent of a T4. Make sure you have both before filing.

For a broader comparison of how your income would be taxed across all provinces, try the federal income tax calculator.

Related Guides

• 2025 Canadian Tax Brackets
• How Much Tax Do I Pay on My Salary in Canada?
• Self-Employed Tax Guide Canada 2025