Indexing of the parameters of the personal income tax system and certain government fees by 1.72% for the 2020 tax year
Thursday, November 7, 2019 6:37:00 PM
(Cabinet du ministre des Finances) - The Ministère des Finances du Québec announced today a 1.72% indexing rate, which will apply as of January 1, 2020 with regard to parameters of the personal income tax system, social assistance benefits and certain government rates.
$537 million to protect the purchasing power of Quebecers
The indexing announced today protects the purchasing power of Quebecers to the tune of nearly $537 million.
In concrete terms, this means that the value of most tax measures under the personal income tax system will increase by a level equivalent to the rise in consumer prices in Québec in 2020. The increase corresponds to tax relief of nearly $527 million for taxpayers.
In addition, the indexing of the social assistance program benefits will allow the most disadvantaged Quebecers to benefit from additional financial assistance of nearly $43 million.
Lastly, the indexing rate will apply to government fees that are not yet subject to an indexing rule or set annually. Indexing reflects the increase in the cost of fee-based services without raising the service user's share of the cost. For a complete year, indexing will generate more than $32 million in additional revenues, which will be used to maintain the quality of public goods and services.