qc-individual-return

Section 1 -- Quick Reference

Section 1 -- Quick Reference

Field	Value
Country	Canada -- Quebec
Tax	Quebec provincial income tax (TP-1) + QPP + QPIP + QHSF
Currency	CAD only
Tax year	Calendar year
Primary legislation	Taxation Act (Quebec), CQLR c. I-3
Supporting legislation	QPP Act; QPIP Act; ITA (Canada)
Tax authority	Revenu Quebec (provincial); CRA (federal)
Filing portal	Revenu Quebec My Account (ImpotNet)
Form	TP-1 + Schedule E (QPP) + Schedule F (QPIP) + TP-80 (self-employment)
Filing deadline	June 15 (self-employed); payment due April 30
Contributor	Open Accountants Community
Validated by	Live status: https://openaccountants.com/skills/qc-individual-return
Skill version	2.0

• Separate provincial return requirement — CRITICAL: Quebec files a SEPARATE provincial return (TP-1) with Revenu Quebec, not through CRA.

Quebec Tax Rates (2025)

Quebec Tax Rates (2025)

Taxable Income (CAD)	Rate
0 -- 53,255	14%
53,256 -- 106,495	19%
106,496 -- 129,590	24%
129,591+	25.75%

QPP Self-Employed (2025)

QPP Self-Employed (2025)

Item	Value
QPP rate (double)	12.80% (vs CPP 11.90%)
QPP2 rate (double)	8.00%
Max QPP contribution	$8,678.40
Max QPP2 contribution	$792.00

QPIP Self-Employed (2025)

QPIP Self-Employed (2025)

Item	Value
Rate	0.878%
Max insurable earnings	$98,000
Max premium	$860.44

QHSF Self-Employed

• QHSF graduated rate formula — 0% below $16,780. Graduated to 1% at $59,885. 1% above $59,885.

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown province	Do not apply this skill
Unknown parts familiales	1 part (single)
Unknown QHSF income	Apply graduated formula

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

• Minimum viable inputs — province on Dec 31 (must be Quebec), net self-employment income, marital status. (Minimum viable)
• Recommended inputs — QPP from employment (RL-1), rent/property tax paid, family situation. (Recommended)
• Ideal inputs — complete TP-80, prior TP-1, RL slips. (Ideal)

Refusal Catalogue

• R-QC-1 -- Not Quebec resident — Province is not Quebec on December 31.
• R-QC-2 -- Corporations — Corporate entities file separate Quebec returns.
• R-QC-3 -- Part-year resident — Escalate.

Section 3 -- Transaction Pattern Library

• Transaction pattern library — Quebec income tax is computed from TP-80 (Quebec equivalent of T2125). Transaction classification follows the same patterns as ca-fed-t2125. Quebec taxable income may differ from federal due to Quebec-specific rules.

Section 4 -- Worked Examples

Example 1 -- Low Income

Input: Quebec taxable income $30,000. Self-employment $30,000. Single.

Computation:

• Quebec tax: $30,000 x 14% = $4,200. Credit: $18,056 x 14% = $2,527.84. Net tax: $1,672.16
• QPP: ($30,000 - $3,500) x 12.80% = $3,392.00
• QPIP: $30,000 x 0.878% = $263.40
• QHSF: ~$92 (graduated formula)
• Total: ~$5,419.58

Example 2 -- Mid-Range

Input: Quebec taxable income $80,000. Single.

Computation:

• Tax: $53,255 x 14% + $26,745 x 19% = $12,537.25. Credit: $2,527.84. Net: $10,009.41
• QPP: max $8,678.40. QPP2: $696.00. QPIP: $702.40. QHSF: $800.
• Total: ~$20,886.21

Example 3 -- High Income

Input: Quebec taxable income $200,000. Single.

Computation:

• Tax through all 4 brackets: $41,244.68. Credit: $2,527.84. Net: $38,716.84
• QPP: $8,678.40. QPP2: $792.00. QPIP: $860.44. QHSF: $2,000.
• Total: ~$51,047.68

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 Separate Provincial Return

• Separate provincial return — Quebec is the only province that administers its own income tax. TP-1 filed with Revenu Quebec; T1 filed with CRA (with 16.5% Quebec abatement on federal tax).

5.2 QPP vs CPP

• QPP vs CPP — Quebec residents always contribute to QPP, never CPP. QPP rate: 12.80% (higher than CPP 11.90%). Half deductible, half credited.

5.3 QPIP

• QPIP — Replaces EI maternity/parental benefits in Quebec. Self-employed rate: 0.878%. Fully deductible from Quebec income.

5.4 QHSF

• QHSF — Self-employed pay directly on TP-1. Graduated from 0% to 1% between $16,780 and $59,885. Flat 1% above $59,885.

5.5 Quebec Abatement

• Quebec Abatement — 16.5% abatement on federal basic tax (on federal T1, line 44000).

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Solidarity Tax Credit

• Solidarity Tax Credit — QST component $360/adult + housing $756 + Northern village $2,005. Reduced by 3% of family income above $40,060. Flag for reviewer.

6.2 Work Premium

• Work Premium — Refundable credit based on work income. Varies by family status. Flag for reviewer.

6.3 Quebec vs Federal Income Differences

• Quebec vs Federal Income Differences — Quebec taxable income may differ from federal. Always compute independently. Flag for reviewer.

6.4 QPP vs CPP Interaction

• QPP vs CPP Interaction — If client has both QPP and CPP contributions in the same year (employment outside Quebec), adjustments needed. Flag.

Section 7 -- Excel Working Paper Template

QUEBEC TP-1 -- Working Paper (2025)

A. INCOME
  A1. Quebec taxable income (TP-1 line 299)         ___________
  A2. Net self-employment income                     ___________

B. QUEBEC TAX
  B1. Gross Quebec tax (4 brackets)                  ___________
  B2. Quebec non-refundable credits (x 14%)          ___________
  B3. Net Quebec tax (B1 - B2, min 0)                ___________

C. SOCIAL CONTRIBUTIONS
  C1. QPP (Schedule E)                               ___________
  C2. QPP2                                           ___________
  C3. QPIP (Schedule F)                              ___________
  C4. QHSF (line 448)                               ___________

D. TOTAL QUEBEC OBLIGATIONS
  D1. B3 + C1 + C2 + C3 + C4                        ___________

REVIEWER FLAGS:
  [ ] Province confirmed as Quebec?
  [ ] QPP rates used (NOT CPP)?
  [ ] Quebec income computed independently?
  [ ] QHSF graduated formula applied?
  [ ] Quebec abatement noted on federal?

Section 8 -- Bank Statement Reading Guide

Quebec tax is computed from TP-80 data. Bank statement classification follows ca-fed-t2125 patterns. Quebec-specific banks: Desjardins (CSV: Date, Description, Withdrawal, Deposit).

Section 9 -- Onboarding Fallback

ONBOARDING QUESTIONS -- QUEBEC TP-1
1. Province of residence on December 31?
2. Net self-employment income?
3. Marital status and spouse income?
4. Number of dependant children?
5. QPP contributions from employment (RL-1)?
6. QPIP premiums from employment?
7. Rent paid or property tax paid?
8. Municipal address (for solidarity credit)?
9. Medical expenses, charitable donations?
10. Prior year avis de cotisation (TP-1)?

Section 10 -- Reference Material

Reference Material

Topic	Reference
Quebec brackets	Taxation Act (Quebec), s. 750
Non-refundable credits	Taxation Act (Quebec), s. 752+
QPP	Act respecting the QPP, s. 50+
QPIP	Act respecting parental insurance
QHSF	Act respecting RAMQ, s. 34
Quebec abatement	ITA (Canada), s. 120(2)
Solidarity credit	Taxation Act (Quebec), s. 1029.8.116.12+

PROHIBITIONS

• NEVER apply this skill if province is not Quebec on December 31
• NEVER use CPP rates for Quebec residents -- always QPP
• NEVER copy federal taxable income to Quebec without verification
• NEVER forget the QHSF contribution
• NEVER forget the Quebec abatement on the federal return
• NEVER combine with another provincial skill
• NEVER present calculations as definitive

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

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