On November 21, 2024, Finance Minister Eric Girard tabled Quebec's economic and financial update for fall 2024. This announcement included tax measures, summarized below.
Optimizing the tax credit for career extension
To encourage experienced workers to remain in or return to the workforce, the Quebec tax system provides a tax credit for career extension (hereinafter referred to as the “tax credit”), which reduces the tax payable on a portion of their eligible work income.
Starting from the 2025 taxation year, the following changes are announced with respect to the application of the tax credit:
- The age of eligibility will be raised from 60 to 65 years;
- The amount of the exclusion of the first dollars of eligible work income will increase from $5 000 to $7 500;
- The maximum amount of eligible work income on which the tax credit is calculated will be increased from $11 000 to $12 500;
- The amount of the reduction threshold will be increased from $40 925 to $56 500;
- The reduction will now be based on net individual income;
- The applicable reduction rate will be raised from 5% to 7%.
The following table shows the main parameters of the tax credit.
Indexation of certain amounts as of the 2026 taxation year
As of the 2026 taxation year, the following amounts, for the purposes of calculating the tax credit, will be automatically indexed each year:
- The amount of the exclusion of the first dollars of eligible work income of $7 500;
- The maximum amount of eligible work income of $12 500;
- The amount of the reduction threshold of $56 500.