Disposable income – 2022 and 2023

As part of the 2023-2024 budget, the government announced two measures to increase the disposable income of Quebecers as of 2023: a tax cut and an increase in the housing component of the refundable solidarity tax credit.

Use the calculator to find out how much you could receive after tax, depending on your family situation.

Increasing Quebecers’ disposable income

Lower personal income tax as of 2023

As of taxation year 2023, the two bottom tax rates of the tax table will be reduced by 1 percentage point, namely:

from 15% to 14% for the rate of the first tax bracket, which covers the first $49 275 of income;
from 20% to 19% for the rate of the second tax bracket, which covers income over $49 275, but not exceeding $98 540.

The tax cut can reach $814 for a person living alone and $1 627 for a couple.

Enhancing the housing component of the refundable solidarity tax credit as of July 2023

The housing component of the solidarity tax credit is double-indexed as of the payment period beginning on July 1, 2023.

For example, for a person living alone, the maximum amount of the housing component was to increase by $39 with the indexation of the tax system. This amount increases by an additional $39 in July 2023, for a total increase of $78.

Illustration

Taking into consideration the measures in effect in 2022 and 2023, a person living alone with an income of $50 000 sees their disposable income increase by $984 in 2023. This increase comes mainly from the tax cut (+$308) and the additional indexation of the housing component of the solidarity tax credit ($39).

Note that this person also benefited from a temporary assistance of $1 100 in 2022 to cope with the increase in the cost of living.

Note

Note that in the calculation details, the numbers preceded by a negative sign (–) correspond to the amounts you theoretically have to pay in taxes or for certain contributions.

Warning

The calculator enables you to estimate the assistance to which you may be entitled, based on certain assumptions intended to reflect the most common situations. The calculator is meant to provide only an estimate. The exact amounts will be determined by the responsible departments and bodies, on the basis of the specific characteristics of each measure and according to the particular situation of each household.

Assumptions used for the disposable income calculator

The calculator proposes a flexible model adapted to the general situation of a number of typical households. The results are presented for illustration purpose only.
The calculator is static, in other words, the situation of the household, the age of the children and income do not change between the periods observed.
The calculator does not take into account all income, deductions and tax credits.
Households may report only work income or retirement income.
Income entered in the calculator can be up to $250 000 per spouse.

Assumptions respecting childcare expenses

Childcare expenses entered cannot exceed $15 000 per child. Childcare expenses are considered at the regular rate if the non-subsidized childcare option is selected. They are considered at the reduced-contribution rate if the subsidized childcare option is selected. There cannot be two types of childcare for the same child.
If reduced-contribution childcare is selected, childcare expenses are used only for the calculation of the federal childcare expenses deduction.

Other assumptions

No individual is another individual’s dependent.
All households contribute to the Québec Prescription Drug Insurance Plan.
Expenses eligible for the refundable and non-refundable tax credits for medical expenses under the Québec and federal plans include only the annual premium under the Québec Prescription Drug Insurance Plan paid in the year.
The parameters of the Canada Child Benefit are those in effect in July of the corresponding year.
For the purpose of calculating the Shelter Allowance, a shelter cost is charged to the individual. This rent is equivalent to the average rent in Québec in October 2022 as published by the Canada Mortgage and Housing Corporation (CMHC).

Updated July 17, 2023