In Québec, 2 types of taxes are levied on the purchase of goods and services:
- the 5% federal goods and services tax (GST)
- the 7.5% Québec Sales Tax (QST), which is applied to the sales price including the GST.
These sales taxes are paid by consumers. However, self-employed workers and businesses can usually benefit from a credit on the GST paid on products and services necessary for business needs.
Some common products are not taxed. This is the case for:
- basic foods
- prescription medication purchased at a pharmacy
For a complete list of tax-free products, visit the Revenu Québec website.
Personal income tax
Quebecers are subject to a progressive income tax by the Canadian and Québec governments. Individuals are taxed on their income from all sources.
Taxes are usually deducted from employees’ salaries. Self-employed workers must make estimated tax payments to both governments. Quebecers must file, each year, 2 income tax returns (provincial and federal).