Quebec Should Announce An Income Tax Cut Today — Here's How Much You Could Save

The CAQ has made some big promises.

Senior Editor
A pile of Canadian banknotes.

A pile of Canadian banknotes.

The Quebec government is presenting its 2023-2024 budget proposal Tuesday and, if the CAQ keeps an election campaign promise, it should include a Quebec tax cut.

A tax cut was the core commitment in the CAQ's proposed "anti-inflation shield," a set of measures aimed at capping government fees and giving residents an infusion of cash. The government has already enacted two other proposed measures in the "shield," one-time $400 to $600 payments for people making under $100,000 and a 3% limit on Hydro-Québec rate increases.

Specifically, the CAQ campaigned on a 1% income tax reduction for the first two tax brackets. It said such a cut could amount to as much as $810 in savings for targeted households.

The party also committed to maintaining that reduction for the duration of its mandate, which, it added, could total a loss of $7.4 billion in government revenue over four years.

Currently, Quebec's first two brackets call for a 15% tax on residents' first $49,275 of taxable income and a 20% tax on income between $49,275 and $98,540 in the 2023 tax year.

In addition to that 1% reduction, the CAQ promised an income tax rate decrease of 0.25% for the first two brackets every subsequent year until 2032, which the party said could mean a further $5 billion in savings.

Premier François Legault said in August 2022 that his party was "committed to making a significant tax cut."

Finance Minister Éric Girard announced Tuesday that the theme of the 2023 budget is Un Québec engagé, "A committed Quebec."

Thomas MacDonald
Senior Editor
Thomas is MTL Blog's Senior Editor. He lives in Saint-Henri and loves it so much that he named his cat after it. On weekdays, he's publishing stories, editing and helping to manage MTL Blog's team of amazing writers. His beats include the STM, provincial and municipal politics and Céline Dion. On weekends, you might run into him brunching at Greenspot, walking along the Lachine Canal or walking Henri the cat in Parc Sir-George-Étienne-Cartier.