In Quebec in 2026, the provincial tax brackets are 14% up to $54,345, 19% up to $108,680, 24% up to $132,245, and 25.75% above that amount. The federal tax brackets are 15%, 20.5%, 26%, 29%, and 33%. The maximum combined marginal tax rate reaches 53.31% on income over $253,414.

The marginal rate applies to your next dollar of income, not to your total income. Because the tax system is progressive, the higher your income, the higher the rate on the next dollar. At $100,000, the combined marginal rate is 36.12%, while the average effective rate is lower, at around 28%.

Tax is calculated in brackets. For federal tax, 15% is applied to the first $57,375, then 20.5% to the next portion, and so on. Quebec uses its own calculation method. Non-refundable credits are then subtracted. Quebec offers a 16.5% tax credit that reduces residents’ federal tax liability.

Self-employed individuals report their net income (income minus expenses) on Forms T2125 and TP-80. This income is added to other income and taxed according to tax brackets. They also pay both parts of the RRQ contribution (12.8%), contribute to the RQAP, and are required to make estimated tax payments.

Several deductions and credits reduce your tax liability: basic personal amount, RRSPs, medical expenses, charitable donations, tuition fees, child care expenses, self-employed person deductions, home office expenses, and vehicle expenses.

The deadline is April 30. Self-employed individuals have until June 15 to file, but the tax is due on April 30: any balance remaining after that date will accrue interest. Installment payments are required if the tax liability exceeds $1,800.

Bankeo connects Quebec residents, entrepreneurs, and self-employed individuals with CPA accountants who specialize in personal taxes. This service is free. We understand your situation and connect you with accountants who can help you optimize your tax return and annual tax planning.