Indexing of the personal income tax system and certain government fees as of January 1, 2016

QUÉBEC, Nov. 13, 2015 /CNW Telbec/ - The Ministère des Finances released today the annual indexing rate for the personal income tax system for 2016, which also applies to certain government fees.

In accordance with the Taxation Act and the Financial Administration Act, the personal income tax system and certain government fees will be indexed at the rate of 1.09% as of January 1, 2016.

That rate corresponds to the annual percentage change in the Québec consumer price index, excluding the increase in the price of tobacco products and alcoholic beverages.

Tax relief of $295 million for taxpayers
Indexing the personal income tax system protects individuals' purchasing power, by offsetting the overall increase in the prices of goods and services.

In concrete terms, this means that the value of a number of deductions and tax credits under the personal income tax system will increase by a level equivalent to the rise in consumer prices observed in Québec in 2015.

For 2016, tax relief of almost $295 million will therefore be available to Québec taxpayers.

A $31 million increase in last resort financial assistance
In addition, last resort financial assistance benefits will be indexed as of January 1, 2016 at the same rate as the personal income tax system. This will give approximately $31 million in additional financial assistance to the most disadvantaged.

Recognition of higher production costs for the government relative to certain fee-based public goods and services
Government fees that are not yet subject to a specific indexing rule or set annually will be indexed in 2016 at the same rate applicable to the personal income tax system. Indexing reflects the increase in the cost of fee-based services without raising the service user's share of the cost.

Indexing is part of the fee practices set forth in the policy for the funding of public services. Over a full year, it will provide the government with additional revenue of nearly $17 million, which will be used to fund and maintain the quality of public goods and services.

A total gain of $309 million for taxpayers in 2016
The combined impact of the indexing of the personal income tax system and of certain fees for public goods and services will generate a substantial gain of about $309 million for Québec taxpayers in 2016.

The document Parameters of the Personal Income Tax System for 2016 presents the main changes relative to the indexing of the personal income tax system. It is available on the Ministère des Finances website, at the following address:


SOURCE Ministère des Finances

For further information: Direction des communications, Ministère des Finances, 418 528-7382


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