Chargement…

Incorporating in Quebec: the 4 options compared

2026 rates — Registrar government fees included in the totals.

Method	Total cost (first year)	Time and effort	What’s included
Doing it yourself with the Registrar	$397+ your time and the risk of errors	Several hours on the government portal, with no guidance	Nothing is prepared for you: articles, forms and initial declaration to draft on your own — any mistake is on you
Incorp-Québec — Essential packageRecommended	$497 all-in$397 government fees included	Online form in about 20 minutes — we prepare, verify and file everything for you	Articles of incorporation, initial declaration with the REQ, NEQ, numbered company, directors’ and shareholders’ declaration
Other online services	$840 to $950approximately, all-in	Comparable online process, higher price	Similar offers, with options and fees often billed extra
Lawyer or notary	$750 to $3,500depending on file complexity	By appointment, on the firm’s timeline	Personalized legal advice — relevant for complex structures (shareholder agreements, trusts, estate freezes)

In all cases, a corporation then pays the Registrar’s annual rights — $106 per year in 2026.

Start my incorporation — $497

Quebec Income Tax Calculator 2026 — Net Salary After Tax

In Québec, the tax calculation depends on the tax status you choose: salaried employee, self-employed worker or corporation. The same gross income can produce a very different net income depending on the applicable contributions, tax credits, deductions, progressive brackets and method of taxation.

This calculator estimates the main taxes and contributions applicable in Québec in 2026, including federal income tax, Québec income tax, the QPP, the QPP2, the QPIP, employment insurance and, for corporations, corporate income tax under different regimes.

It also covers the nine other Canadian provinces: a province selector lets you calculate the same income in Ontario, Alberta, British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador — with the CPP instead of the QPP, employment insurance at the standard rate and each province’s specific features (Ontario’s surtax and health premium, low-income tax reductions, and so on).

It helps you better understand the difference between employment income, self-employment income and profit earned through a corporation.

Self-employed and wondering about incorporation?

A corporation can defer tax and protect your personal assets. See what our $497 all-in incorporation service includes or compare the real costs of incorporating in Quebec in 2026.

Start my business online • $497

On this page: The $80,000 example · How tax is calculated · 2026 rates · Contributions · Employee · Self-employed · Corporation · Comparison · Other provinces · FAQ

Your net salary at a glance

The exact amount depends on your status, your income and your province — that is what the tool above calculates instantly. But the order of magnitude can be grasped in one picture: here is what happens to the same income under each tax status.

The same $80,000 income, three outcomes

For the same $80,000 income, the result can vary by status.

Salaried employee

The employee generally pays:

• QPP, employee share;
• QPIP, employee rate;
• Employment insurance;
• Federal income tax;
• Québec income tax.

Self-employed worker

The self-employed worker generally pays:

• QPP, employee share and employer share;
• QPIP, self-employed rate;
• No employment insurance under the standard model;
• Federal income tax;
• Québec income tax.

Corporation

The corporation pays:

• Federal corporate income tax;
• Québec corporate income tax.

However, the after-tax profit belongs to the corporation. If the shareholder withdraws the money personally, another layer of personal tax may apply.

Why the same gross income produces a different net income

A gross income of $80,000 can produce a different result depending on whether it is:

• A salary of $80,000;
• Self-employment income of $80,000;
• Corporate profit of $80,000.

The differences come mainly from:

• The self-employed worker’s double QPP contribution;
• The different QPIP rate;
• The absence of employment insurance for the self-employed;
• Tax credits;
• Deductions;
• Business expenses;
• Corporate tax rates;
• Eligibility for the small business deduction (SBD);
• The fact that corporate profit is not automatically personal income.

How income tax works in Québec

Why tax is not a single flat percentage

Income tax in Québec and Canada works mainly through progressive brackets.

This means each portion of income is taxed at a different rate. The first dollars earned are taxed at a lower rate, and the upper portions of income are taxed at higher rates.

A person who reaches a high tax bracket therefore does not pay that rate on their entire income. They pay that rate only on the portion of income that falls within that bracket.

Marginal rate vs average effective rate

Marginal rate

The marginal rate is the percentage that applies to the next dollar earned.

It is useful for estimating the effect of additional income, such as:

• A raise;
• A premium;
• A bonus;
• Overtime;
• An additional contract;
• Extra self-employment income;
• Additional business profit.

Conceptual example: if your combined marginal rate is 36%, an additional $100 of income could leave you about $64 net, before other specifics.

Average effective rate

The average effective rate is the total share of income that goes to taxes and contributions.

Average effective rate = total taxes and contributions ÷ gross income

The average effective rate is generally lower than the marginal rate, because not all income is taxed at the highest rate.

Gross income, taxable income and net income

Gross income

Gross income is the amount earned before taxes, contributions and deductions.

Examples:

• Annual salary before withholdings;
• Self-employment income before tax;
• Business profit before corporate tax.

Taxable income

Taxable income is the income used to calculate tax after certain eligible deductions.

Taxable income = gross income - eligible deductions

Net income

Net income is the amount left after taxes and contributions.

Net income = gross income - taxes - social contributions

In the case of a corporation, the after-tax profit belongs to the corporation. It does not automatically represent the personal income available to the shareholder.

Tax credit vs deduction

It is important to distinguish a tax credit from a deduction.

Deduction

A deduction reduces taxable income.

Gross income: $80,000
Deduction: $1,000
Taxable income: $79,000

The real value of a deduction depends on the marginal rate. The higher the marginal rate, the more a deduction can reduce tax.

Non-refundable tax credit

A tax credit reduces the tax payable directly.

Amount eligible for the credit: $1,000
Credit rate: 14%
Tax reduction: $140

A non-refundable credit can reduce tax to zero, but it generally does not produce a refund if the tax is already nil.

Basic personal amount

The basic personal amount reduces the tax payable. It is not a full deduction from income, but a non-refundable tax credit.

Federal

Federal personal credit = $16,452 × 14%

Québec

Québec personal credit = $18,952 × 14%

This credit explains why a first portion of income generally produces no net tax, even though it technically forms part of taxable income.

2026 tax rates

2026 tax parameters used

The calculator uses annual parameters. Even if you display a result per month, per two weeks or per week, the core calculation remains annual.

This makes it possible to correctly apply the annual caps of the QPP, the QPP2, the QPIP and employment insurance.

Federal income tax 2026

Federal income tax is calculated in progressive brackets.

Federal taxable income	Rate
$0 to $58,523	14%
$58,523 to $117,045	20.5%
$117,045 to $181,440	26%
$181,440 to $258,482	29%
Over $258,482	33%

Federal basic personal amount used: $16,452

Basic personal credit rate: 14%

Québec residents then benefit from the Québec abatement.

Net federal tax = federal tax after credits × (1 - 16.5%)

The abatement does not eliminate federal tax. It reduces it to reflect the fact that Québec administers certain programs and collects its own provincial income tax.

Québec provincial income tax 2026

Québec income tax is also calculated in progressive brackets.

Québec taxable income	Rate
$0 to $54,345	14%
$54,345 to $108,680	19%
$108,680 to $132,245	24%
Over $132,245	25.75%

Québec basic personal amount used: $18,952

Basic personal credit rate: 14%

Unlike the federal tax, Québec income tax receives no equivalent abatement. It is calculated using Québec’s own brackets, then reduced by the applicable credits.

2026 social contributions

Québec Pension Plan — QPP

The Québec Pension Plan (QPP) is Québec’s public retirement plan. Employees, employers and self-employed workers contribute to it.

The QPP does not apply to all income without limit. There is a basic exemption and there are caps.

Item	2026 parameter
General exemption	$3,500
Maximum pensionable earnings (YMPE)	$74,600
Additional maximum pensionable earnings (YAMPE)	$85,000
Employee rate on the main portion	6.3%
Employee QPP2 rate	4%
Employer rate	Same as the employee rate
Self-employed worker	Pays both the employee share and the employer share

Understanding the YMPE and the YAMPE

The QPP uses two important caps.

YMPE — Maximum pensionable earnings

The YMPE is the main cap on earnings subject to the main QPP contribution.

In 2026, the YMPE used is $74,600.

YAMPE — Additional maximum pensionable earnings

The YAMPE is used to calculate the second additional contribution, often called QPP2.

In 2026, the YAMPE used is $85,000.

In practice:

Main QPP contribution:
income between $3,500 and $74,600

QPP2 contribution:
income between $74,600 and $85,000

Beyond the YAMPE, no additional QPP contribution is calculated in this model.

Québec Parental Insurance Plan — QPIP

The Québec Parental Insurance Plan (QPIP) funds maternity, paternity, parental and adoption benefits in Québec.

Québec has its own plan, which partly explains why Québec employees benefit from a reduced employment insurance rate.

Contributor type	2026 rate
Employee	0.430%
Self-employed worker	0.764%
Maximum insurable earnings	$103,000

Formula for an employee

QPIP employee = min(gross income, $103,000) × 0.430%

Formula for a self-employed worker

QPIP self-employed = min(gross income, $103,000) × 0.764%

Employment insurance in Québec

Employment insurance is a federal program. In Québec, the employee rate is reduced because the QPIP exists.

Item	2026 parameter
Maximum insurable earnings	$68,900
Québec employee rate	1.30%

Formula

EI = min(gross income, $68,900) × 1.30%

Under the standard model, a self-employed worker does not contribute to employment insurance. Specific situations of voluntary enrolment for certain special benefits exist, but they are not included in this calculator.

Social contributions vs income taxes

Social contributions are not exactly the same thing as income taxes.

Taxes

Taxes fund general public spending.

Examples:

• Federal income tax;
• Québec income tax.

Social contributions

Social contributions fund specific programs.

Examples:

• QPP for public retirement;
• QPIP for parental benefits;
• Employment insurance for certain income protections.

Even though these amounts reduce net income, they do not all have the same tax nature.

Why contributions are capped

Some contributions apply only up to a maximum income.

This is notably the case for:

• QPP;
• QPP2;
• QPIP;
• Employment insurance.

This means that beyond a certain income level, these contributions stop growing, even though income tax keeps increasing.

Salaried employee: the full calculation

Salaried employee — the full calculation logic

A salaried employee receives employment income. Their employer generally withholds the contributions and the estimated tax at source.

The calculator models the main mandatory withholdings:

• QPP;
• QPIP;
• Employment insurance;
• Federal income tax;
• Québec income tax.

Step 1 — Calculating the contributions

QPP = main contribution + QPP2 contribution
QPIP = insurable income × QPIP rate
EI = insurable income × EI rate

Step 2 — Determining credits and deductions

For an employee:

Item	Treatment
Base QPP, 5.3% portion	Tax credit
Additional QPP, 1% portion	Deduction
QPP2, 4% portion	Deduction
QPIP employee	Tax credit
Employment insurance	Tax credit

Step 3 — Calculating taxable income

Taxable income = gross income - eligible deductions

Step 4 — Calculating federal tax

Federal tax is calculated in brackets, reduced by the applicable credits, then reduced by the Québec abatement.

Step 5 — Calculating Québec tax

Québec tax is calculated in brackets, then reduced by the applicable credits.

Step 6 — Calculating net income

Net income = gross income - QPP - QPIP - EI - federal tax - Québec tax

QPP for a salaried employee

For an employee, the QPP contribution is withheld from the pay. The employer also pays an equivalent share, but that employer share does not directly reduce the gross salary shown to the employee.

Main contribution formula

Base contributory earnings = min(gross income, $74,600) - $3,500
Main QPP contribution = base contributory earnings × 6.3%

QPP2 contribution formula

QPP2 contributory earnings = min(gross income, $85,000) - $74,600
QPP2 contribution = QPP2 contributory earnings × 4%

Total contribution

Total QPP = main QPP contribution + QPP2 contribution

Tax treatment of the QPP for an employee

An employee’s QPP contribution is not treated entirely the same way throughout.

QPP component	Rate	Tax treatment
Base plan	5.3%	Non-refundable tax credit
First additional contribution	1%	Income deduction
QPP2	4%	Income deduction

This means part of the QPP directly reduces the tax payable as a credit, while another part reduces taxable income.

Source deductions vs final tax

For an employee, the employer generally withholds tax and contributions on each pay.

These withholdings are estimates.

At tax time, the real tax is recalculated based on the taxpayer’s complete situation.

After filing, a person may:

• Receive a refund;
• Have a nil balance;
• Owe a balance.

A refund does not necessarily mean the person pays less tax. It often means too much was withheld during the year.

Bonuses, premiums and additional income

Bonuses, premiums and retroactive payments may be subject to special source-withholding methods.

A bonus may look more heavily taxed on the pay stub, but that does not necessarily mean it is permanently taxed at a different rate.

The annual return generally recalculates the total tax based on the year’s entire taxable income.

RRSPs and other deductions not included

RRSP contributions can reduce taxable income.

Example:

Gross income: $90,000
Eligible RRSP contribution: $10,000
Approximate taxable income: $80,000

A calculator that does not include RRSPs can therefore overestimate the tax of someone who contributes to an RRSP.

The same principle can apply to other deductions or credits not included in the model.

Employer cost vs gross salary

An employee’s gross salary does not represent the total cost to the employer.

On top of the salary, the employer may have to pay:

• The employer share of the QPP;
• The employer share of the QPIP;
• The employer share of employment insurance;
• The Health Services Fund (FSS) contribution;
• CNESST premiums;
• Vacation pay;
• Statutory holidays;
• Group insurance;
• Administrative costs;
• Other payroll charges or benefits.

The calculator mainly estimates the employee’s net income perspective, not the total employer cost.

Self-employed: the full calculation

Self-employed — the full calculation logic

A self-employed worker generally operates a sole proprietorship. They may be a consultant, a freelancer, an independent professional, an individual entrepreneur or a service provider working on their own account.

The self-employed worker is taxed as an individual, but their social contributions are not identical to an employee’s.

Main differences from an employee

• They pay both the employee share and the employer share of the QPP.
• They pay a higher QPIP rate.
• They generally do not contribute to employment insurance under the standard model.
• They can deduct certain portions of their contributions.
• They must plan for their own taxes and instalments.
• They can deduct eligible business expenses.

For the full picture of the status — definition, how to organize your work, when to incorporate — see our guide to freelancing and self-employment in Québec.

QPP for a self-employed worker

The self-employed worker pays both shares of the QPP: the employee share and the employer share.

Component	Employee rate	Self-employed rate
Main QPP	6.3%	12.6%
QPP2	4%	8%

Formula

Main QPP = base contributory earnings × 12.6%
QPP2 = QPP2 contributory earnings × 8%
Total QPP = main QPP + QPP2

This double contribution explains why a self-employed worker can have higher contributions than an employee with an equivalent income.

QPIP for a self-employed worker

The self-employed worker contributes to the QPIP at a rate higher than the employee rate.

QPIP self-employed = min(gross income, $103,000) × 0.764%

The rate is higher because there is no employer paying a separate share.

Employment insurance for a self-employed worker

In the calculator’s general model:

Employment insurance = $0

A self-employed worker generally does not contribute to regular employment insurance. Certain special protections may exist through voluntary enrolment, but they are not modeled here.

Tax treatment of self-employed contributions

The tax treatment for a self-employed worker is more complex than for an employee.

Part of the contributions gives entitlement to a tax credit. Another part is deductible from taxable income.

Portion giving entitlement to a credit

BaseCredit = employee-equivalent base QPP + employee-equivalent QPIP

Deductible portion

QPP deduction = total QPP - employee-equivalent base QPP portion
QPIP deduction = portion of self-employed QPIP above the employee rate
Total deduction = QPP deduction + QPIP deduction

This logic better reflects the difference between a contribution that gives entitlement to a credit and a contribution that actually reduces taxable income.

Self-employed: revenue vs net profit

For a self-employed worker, it is essential to distinguish revenue from net profit.

Revenue

Revenue is the amounts invoiced to clients.

Net profit

Net profit is generally income minus eligible expenses.

Net profit = business income - eligible expenses

Tax is generally calculated on net profit, not simply on gross sales.

note

If you enter an amount in the calculator as a self-employed worker, you need to know whether that amount represents your gross revenue or your net profit after expenses. The result can be very different.

Possible expenses for a self-employed worker

A self-employed worker can generally deduct reasonable expenses incurred to earn business income.

Possible examples:

• Software;
• Computer equipment;
• Phone;
• Internet;
• Advertising;
• Professional fees;
• Subcontracting;
• Bank fees;
• Supplies;
• Eligible travel;
• Home office, if the conditions are met;
• Professional insurance;
• Accounting fees;
• Business-related legal fees;
• Professional subscriptions;
• Eligible training costs.

These expenses must be documented, reasonable and related to operating the business.

Tax instalments for the self-employed

A self-employed worker generally has no employer automatically withholding tax on each payment received.

They may therefore have to pay tax instalments if their net tax payable exceeds certain thresholds under the applicable rules.

It is prudent to set aside part of your income to cover:

• Federal income tax;
• Québec income tax;
• QPP;
• QPIP;
• GST/QST, if applicable;
• Future instalments.

Income received is therefore not entirely available to spend.

GST/QST and income tax

GST and QST are not income taxes. They are sales taxes collected from clients and remitted to the tax authorities.

Example:

Service: $1,000
GST/QST: $149.75
Total invoiced: $1,149.75

The GST/QST collected is generally not net income for the business. It must be remitted, minus eligible input tax credits.

This calculator deals with income tax and contributions, not sales taxes.

To figure out the taxes to charge, use our GST/QST calculator; for registering for the tax files, see getting your tax numbers.

Corporation (Québec inc.)

Corporation — the general logic

A corporation, such as a Québec inc. or a Canada inc., is a separate legal entity.

The corporation pays its own tax on its profits. The shareholder then pays personal tax when they receive a salary, a dividend or another taxable benefit.

The corporate tax calculator therefore estimates the tax paid by the corporation, but not necessarily the shareholder’s final personal tax.

Incorporating a Québec corporation costs $497 all included, government fees covered; the fee breakdown is in our guide to the cost of incorporating and the comparison of structures in legal structures in Québec.

Active business income

The calculator mainly targets active business income.

Examples:

• Professional services;
• Consulting;
• Software development;
• IT services;
• Marketing agency;
• Product sales;
• Construction;
• Retail;
• Regular operation of a business.

Passive income, such as certain investment income, interest, portfolio dividends or capital gains, may be subject to other rules and is not always eligible for the same rates.

Corporate income tax 2026

The calculator distinguishes three corporate taxation modes:

Mode	Federal	Québec	Combined rate
SBD	9%	3.2%	12.2%
Federal SBD only	9%	11.5%	20.5%
General rate	15%	11.5%	26.5%

The SBD, or small business deduction, allows certain Canadian-controlled private corporations to benefit from a reduced rate on a first portion of active business income.

The limit used in the calculator is $500,000.

General corporate tax formula

The income is split into two portions:

Portion eligible under the SBD limit = min(income, $500,000)
General portion = max(0, income - $500,000)

The tax is then calculated according to the selected mode.

Federal tax =
SBD portion × applicable federal rate
+
general portion × 15%

Québec tax =
SBD portion × applicable Québec rate
+
general portion × 11.5%

Then:

Total corporate tax = federal tax + Québec tax
After-tax profit = income - total corporate tax
Corporate effective rate = total corporate tax ÷ income

Full SBD

The SBD mode is the scenario where the corporation benefits from the reduced rate both federally and in Québec.

In this mode:

Federal: 9%
Québec: 3.2%
Combined rate: 12.2%

This scenario can apply to a Canadian-controlled private corporation earning eligible active business income that meets the applicable conditions, including the Québec criteria.

Federal SBD only

The federal SBD only mode is the scenario where the corporation benefits from the reduced federal rate, but not from the reduced Québec rate.

In this mode:

Federal: 9%
Québec: 11.5%
Combined rate: 20.5%

This case can be common for certain incorporated consultants or small corporations without employees that do not meet the Québec criteria giving access to the reduced provincial rate.

General rate

The general rate applies when the income is not eligible for the SBD or when the eligible limit is exceeded.

In this mode:

Federal: 15%
Québec: 11.5%
Combined rate: 26.5%

The portion of income above the $500,000 limit is generally taxed at the general rate.

General conditions for accessing the SBD

A corporation does not benefit from the SBD automatically.

It must generally meet several conditions:

• Be a Canadian-controlled private corporation, or CCPC;
• Earn income from a business actively carried on in Canada;
• Not be controlled by non-residents or by a public corporation;
• Respect the business limit;
• Share the limit with associated corporations;
• Not exceed certain taxable capital thresholds;
• Not exceed certain passive investment income thresholds;
• Meet Québec’s specific conditions.

Québec-specific conditions for the SBD

In Québec, access to the reduced provincial rate can depend on additional criteria.

A corporation may have to meet a paid-hours test.

The calculator uses the following logic:

• Full SBD if the federal and Québec conditions are met;
• Federal SBD only if the corporation meets the federal conditions but not the Québec conditions;
• General rate if the income or the corporation is not eligible for the SBD.

The Québec reference threshold is often tied to 5,500 paid hours. A progressive reduction can apply when the corporation falls between certain thresholds, for example between 5,000 and 5,500 hours.

Some businesses in the primary or manufacturing sectors may also have specific rules.

Salary, dividend and the corporation

The tax paid by a corporation is not always the entrepreneur’s final tax.

A corporation can retain its after-tax profits. However, if the shareholder wants to withdraw the money personally, they will generally have to do so as a salary, a dividend or a combination of the two.

Salary

A salary paid by the corporation is generally:

• Deductible for the corporation;
• Taxable for the person who receives it;
• Subject to source deductions;
• Subject to the applicable social contributions;
• Counted toward RRSP room;
• Counted toward certain social protections.

Dividend

A dividend is generally:

• Not deductible for the corporation;
• Paid out of after-tax profits;
• Taxable for the shareholder;
• Subject to the dividend gross-up and tax credit rules;
• Not subject to the QPP like a salary;
• Not generating RRSP room.

The choice between salary and dividend depends on the personal, tax and corporate situation.

When surpluses build up inside the corporation, a holding (management) company can become relevant.

Beware of the false advantage of incorporation

A corporation can show a lower tax rate than an individual, especially when it benefits from the SBD.

However, that does not mean the shareholder can withdraw all the money personally without additional tax.

The main advantage of incorporation can sometimes be a tax deferral, especially when profits stay in the corporation to be reinvested.

If all the profits are withdrawn immediately by the shareholder, the real saving can be much smaller.

Wondering if it’s the right time?

See our guide When to incorporate in Québec (2026 income thresholds) to assess your situation, and what a $497 all-included incorporation covers.

Does the rate gap speak to you?

Setting up your Québec corporation happens entirely online: a form of about 20 minutes, $497 all included, with the $397 government fee covered.

Incorporate online — $497 all included

Employee vs self-employed vs corporation

Item	Employee	Self-employed	Corporation
Type of income	Salary	Personal business income	Corporate income
Main tax	Personal income tax	Personal income tax	Corporate income tax
QPP	Employee share	Employee + employer shares	Based on salary paid
QPIP	Employee rate	Self-employed rate	Based on salary paid
Employment insurance	Yes	Generally no	Based on salary paid
Business expenses	Very limited	Possible if eligible	Possible if eligible
Administration	Low	Medium	Higher
Returns	T1 and TP-1	T1 and TP-1 with business income	T2, CO-17 and corporate obligations
Tax planning	Limited	Medium	More flexible, but more complex

The corporate obligations mentioned here — T2 and CO-17 returns, annual update with the Registraire — are detailed in our guide to the annual updating declaration (REQ).

What about other provinces?

Other provinces: Ontario, Alberta, British Columbia and more

The calculator covers the ten Canadian provinces. The province selector lets you compare Québec with Ontario, Alberta, British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador.

Outside Québec, the calculation changes on several points:

• The CPP (Canada Pension Plan) replaces the QPP: 5.95% for the employee (11.9% for the self-employed) on earnings between $3,500 and $74,600, plus the CPP2 at 4% (8%) between $74,600 and $85,000.
• Employment insurance is at the standard rate of 1.63% (instead of Québec’s reduced 1.30% rate), on a maximum of $68,900.
• There is no QPIP: that plan is exclusive to Québec.
• The 16.5% Québec abatement does not apply: federal tax is paid in full.
• Each province applies its own brackets, its own basic personal amount and its own features:

Province	2026 features modeled
Ontario	Surtax (20% / 56%), health premium (max $900), Ontario tax reduction
Alberta	8% bracket up to $61,200, credits calculated at 8%
British Columbia	7 brackets (5.6% to 20.5% — bottom rate raised in the 2026 budget), BC tax reduction (max $690)
Saskatchewan	Higher basic personal amount ($20,381), 3 brackets
Manitoba	Frozen thresholds; basic personal amount reduced to zero between $200,000 and $400,000
Nova Scotia	5 brackets, low-income tax reduction
New Brunswick	Low-income tax reduction (max $817)
Prince Edward Island	New 20% bracket above $200,000 (2026)
Newfoundland and Labrador	8 brackets, low-income tax reduction (max $1,007)

For corporations, the calculator also applies each province’s corporate rates (SBD rate and general rate): for example, 12.2% combined for an Ontario Inc. eligible for the SBD, 11% for an Alberta Inc. or a BC Inc. Outside Québec there is no paid-hours test: provincial SBD eligibility follows federal eligibility.

Province of residence and taxes

Provincial tax generally depends on the province of residence on December 31 of the tax year.

A person who works for an employer located in another province, but who lives in Québec, can still be taxed as a Québec resident.

You need to distinguish:

Province of tax residence
Employer's location
Where the work is performed
Province of source withholding

An incorrect provincial withholding can create a balance owing or a refund when the annual return is filed.

Québec resident working for an employer outside Québec

A person who lives in Québec but works for an employer located elsewhere in Canada can be in a particular situation.

For example:

• The employer may withhold another province’s tax;
• The individual may have to pay Québec tax when filing;
• Adjustments may be necessary;
• QPP, QPIP or employment insurance contributions may depend on the payroll situation.

The calculator applies the rules of the selected province: to estimate your situation correctly, choose your province of tax residence on December 31, regardless of where your employer is located.

What this calculator does — and doesn’t

What this calculator does

• Calculates federal income tax using the progressive brackets applicable in 2026.
• Applies the 16.5% Québec abatement on basic federal tax.
• Calculates Québec provincial income tax using the 2026 progressive brackets.
• Applies the federal basic personal amount.
• Applies the Québec basic personal amount.
• Calculates Québec Pension Plan (QPP) contributions.
• Calculates the second additional contribution, the QPP2.
• Calculates the Québec Parental Insurance Plan (QPIP) contribution.
• Calculates the employment insurance contribution at Québec’s reduced rate.
• Distinguishes the rules that apply to an employee, a self-employed worker and a corporation.
• Covers the 10 Canadian provinces: provincial tax, basic personal amount and each province’s own contributions.
• Calculates the CPP (instead of the QPP) and employment insurance at the standard rate for provinces outside Québec.
• Applies the Ontario surtax, the Ontario health premium and the low-income tax reductions (BC, NS, NB, PEI, NL).
• Calculates the estimated net income.
• Displays the average effective rate.
• Displays the combined marginal rate.
• Estimates each province’s corporate income tax under the chosen regime: full SBD, federal SBD only (Québec) or general rate.

What it doesn’t do

• Does not replace an official income tax return.
• Does not account for marital status.
• Does not account for dependants.
• Does not account for RRSP, FHSA, RRIF or other personal tax strategies.
• Does not account for personalized credits.
• Does not account for medical expenses, donations, childcare costs or family credits.
• Does not account for investment income, personal dividends, capital gains or rental income.
• Does not calculate GST/QST.
• Does not calculate detailed business expenses, unless the amount entered already represents net profit.
• Does not replace certified tax software or a professional’s analysis.

Important

Results are provided for information purposes only. Your actual tax may vary based on your credits, deductions, additional income, family situation, province of residence, instalments already paid, eligible expenses and other elements specific to your situation.

Key formulas

Taxable income

Taxable income = gross income - eligible deductions

Tax by brackets

Tax by brackets =
bracket 1 portion × bracket 1 rate
+
bracket 2 portion × bracket 2 rate
+
bracket 3 portion × bracket 3 rate

Basic personal credit

Personal credit = basic personal amount × credit rate

Net personal tax

Net tax =
tax by brackets
-
applicable tax credits

Net personal income

Net income =
gross income
-
social contributions
-
federal tax
-
Québec tax

Corporate tax

Corporate tax =
federal corporate tax
+
Québec corporate tax

After-tax profit

After-tax profit =
pre-tax profit
-
corporate tax

Frequently asked questions

Does this calculator give my exact final tax?

No. It provides an estimate based on the parameters used. Your final tax depends on your complete return, your credits, deductions, additional income and personal situation.

Why does my net income look different from my actual pay?

Your actual pay may include other deductions or benefits, such as group insurance, a private pension plan, union dues, taxable benefits or payroll adjustments.

Why does a self-employed worker pay more QPP?

Because they generally pay both the employee share and the employer share. An employee only sees the employee share on their pay.

Does a self-employed worker pay employment insurance?

Under the standard model, no. Certain special protections may exist through voluntary enrolment, but they are not included in this calculator.

Does incorporation always reduce taxes?

No. A corporation may pay a lower tax rate on retained profits, but the shareholder may pay personal tax when withdrawing the money.

Is the marginal rate the percentage paid on all income?

No. The marginal rate applies only to the next dollar earned. The average effective rate is more representative of the total share paid.

Are QPP, QPIP and EI contributions taxes?

They are social contributions. They reduce net income, but they fund specific programs.

Why does Québec have a reduced employment insurance rate?

Because Québec administers its own parental insurance plan, the QPIP. The employment insurance rate for Québec employees is reduced accordingly.

Does the calculation include GST and QST?

No. GST and QST are sales taxes, separate from income tax.

Does the calculation include business expenses?

Only if the income entered in the calculator already represents net profit after expenses. Otherwise, expenses must be considered separately.

Key takeaways

How much tax you pay in Québec depends heavily on the status you choose.

An employee, a self-employed worker and a corporation can generate the same gross income, but obtain very different results.

The main differences come from:

• QPP contributions;
• The QPP2;
• The QPIP;
• Employment insurance;
• Tax credits;
• Deductions;
• Tax brackets;
• The Québec abatement;
• SBD eligibility;
• The fact that corporate income is not automatically personal income.

This calculator is meant to help you understand these differences and estimate net income under several scenarios. It should be used as a general information and planning tool, not as personalized tax advice.

Estimate, compare — then structure

The calculator shows the gap between the statuses; incorporation makes it real. $497 all included, government fees covered, filed directly with the Registraire des entreprises.

Incorporate online — $497 all included