This is a summary of the main changes made by Revenu Québec in regard to the calculation of source deductions and contributions for fiscal year 2015.
Rates, Thresholds and Amounts Related to Source Deductions and Contributions
- The indexation factor for 2015 is 1.06% for 2015. The income tax rates applicable to the taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed:
- The 16% rate applies to taxable income of $41,935 or less (instead of $41,495).
- The 20% rate applies to taxable income of more than $41,935, but not more than $83,865 (instead of $82,985).
- The 24% rate applies to taxable income of more than $83,865, but not more than $102,040 (instead of $100,970).
- The 25.75% rate applies to taxable income of more than $102,040.
Amounts to calculate source deductions:
- Basic amount: $11,425
- Amount transferred from one spouse to the other: $11,425
- Amount for other dependants who are 18 or older: $3,065
- Amount for a child under 18 enrolled in post-secondary studies: $2,105
- Additional amount for a person living alone (single-parent family): $1,655
- Amount for a severe and prolonged impairment in mental or physical functions: $2,595
- Amount for a person living alone: $1,340
- Age amount: $2,460
- Amount for retirement income: $2,185
- Reduction threshold used to calculate the net family income (this income is used to calculate the age amount, the amount for a person living alone and the amount for retirement income): $33,145
Gratuities and retroactive pay: The threshold to determine the method used to calculate the source deduction of income tax from gratuities and retroactive pay has been increased from $14,130 to $14,300.
Deduction for employment income: The maximum deduction for employment income has been increased from $1,110 to $1,120.
Emergency services volunteer: The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,110 to $1,120.
Maximum insurable earnings and QPIP (Québec Parental Insurance Plan) premium rate: The maximum insurable earnings for the purpose of the QPIP have been increased from $69,000 to $70,000. The employee premium rate remains at 0.559% and the employer premium rate remains at 0.782%. As a result, the maximum annual employee premium is $391.30 (instead of $385.71) and the maximum annual employer premium is $547.40 (instead of $539.58.
Limits and Rates Related to the QPP for 2015
The limits and rates related to the Québec Pension Plan (QPP) for 2015 are as follows:
- The maximum pensionable earnings have been increased from $52,500 to $53,600.
- The basic exemption remains $3,500.
- The maximum contributory earnings have been increased from $49,000 to $50,100.
- The contribution rate has been increased from 5.175% to 5.25% for both employers and employees.
- The maximum employee contribution has been increased from $2,535.75 to $2,630.25.
- The maximum employer contribution has been increased from $2,535.75 per employee to $2,630.25 per employee.
- The contribution rate for self-employed persons has been increased from 10.35% to 10.50%.
- The maximum contribution for a self-employed person has been increased from $5,071.50 to $5,260.50.
Limits and Rates for 2015 Applicable to the Use of an Automobile
The limits and rates for the use of an automobile or the automobile expenses that can be deducted for income tax purposes for 2015 are listed below :
- For purposes of Capital Cost Allowance (CCA), the ceiling on the capital cost of passenger vehicles is still $30,000 (plus GST and QST) for vehicles purchased after 2014.
- The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2014. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling.
- The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre.
- The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2014.
- The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer remains 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate remains 24 cents per kilometre.
Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction
The rate of the tax credit for the acquisition of shares issued by Fondaction is changing to 20% effective June 1, 2015. This rate will apply until May 31, 2016. This replaces the information published for 2015 in the Guide for employers (TP-1015.G-V) and the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V guide).
Increase of the TFSA (Tax Free Savings Account) Dollar Limit
As set out in the last budget, the TFSA annual dollar limit is increased to $10,000. This increase will be effective for the 2015 calendar year. However, the automatic indexation adjustment, which allowed the increase of the maximum contribution of $5,000 to $ 5,500 in 2013, was eliminated. Therefore, the maximum amount of contribution to a TFSA will be $41,000 in 2015.
Increase in the Eligible Amount for Food Donations Made by Farming Businesses
The eligible amount for a donation that is made after March 26, 2015, by a recognized farm producer to a registered charity that is either the Food Banks of Québec or a Moisson member, can be increased by 50% for purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as the case may be.
For more information, see pages A.117 and A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.