2010 Québec Budget Impact Paper

The 2010 Québec budget that was presented by the Honourable Raymond Bachand, Minister of Finance for the government of Québec on March 30, 2010, was reviewed and contained no new income tax measures affecting federal public service pay or pension payments for 2010. However, there are some personal tax measures that employees may find informative from a personal perspective.

ITEMS OF INTEREST

Health contribution

The 2010 Budget has announced the introduction of a general health contribution as of July 1, 2010. All individuals (other than trusts) who, at the end of a year, are resident in Québec and 18 years of age will be required to pay the health contribution for that year. The amount of the health contribution will be $25 per adult for 2010, $100 per adult for 2011 and $200 per adult as of 2012. An adult will be exempt from paying the health contribution for a given year if the family income for the year is equal to or less than the exemption threshold based on the composition of the adult's household.

Solidarity tax credit

The Québec Sales Tax (QST) refundable tax credit, property tax refund, and the refundable tax credit for individuals living in a northern village will be grouped, as of
July 2011, into a single refundable tax credit-the solidarity tax credit. This new credit for low-and middle-income households will be paid monthly to eligible Québec residents aged 18 or older at the start of a given month. The credit will first be determined based on a formula and will be reduced by 3% or 6%, as the case may be, of family income in excess of $30,490 for taxation year 2011.

Quebec Sales tax

The 2010 Budget reconfirmed the increase of the QST announced in the 2009 budget from the current 7.5% to 8.5%, effective January 1, 2011. The 2010 budget has announced the QST will be increased by another percentage point on January 1, 2012, from 8.5% to 9.5%.


To review the 2010 Québec Budget documents, please visit the following Web site:

Budget 2010-2011