openaccountants Quebec TP-1 Provincial Income Tax -- Sole Proprietor Skill v2.0
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Section 1 -- Quick Reference
| Field | Value |
|---|---|
| Country | Canada -- Quebec |
| Tax | Quebec provincial income tax (TP-1) + QPP + QPIP + QHSF |
| Currency | CAD only |
| Tax year | Calendar year |
| Primary legislation | Taxation Act (Quebec), CQLR c. I-3 |
| Supporting legislation | QPP Act; QPIP Act; ITA (Canada) |
| Tax authority | Revenu Quebec (provincial); CRA (federal) |
| Filing portal | Revenu Quebec My Account (ImpotNet) |
| Form | TP-1 + Schedule E (QPP) + Schedule F (QPIP) + TP-80 (self-employment) |
| Filing deadline | June 15 (self-employed); payment due April 30 |
| Contributor | Open Accountants Community |
| Validated by | Pending -- Canadian CPA sign-off required |
| Skill version | 2.0 |
CRITICAL: Quebec files a SEPARATE provincial return (TP-1) with Revenu Quebec, not through CRA.
Quebec Tax Rates (2025)
| Taxable Income (CAD) | Rate |
|---|---|
| 0 -- 53,255 | 14% |
| 53,256 -- 106,495 | 19% |
| 106,496 -- 129,590 | 24% |
| 129,591+ | 25.75% |
QPP Self-Employed (2025)
| Item | Value |
|---|---|
| QPP rate (double) | 12.80% (vs CPP 11.90%) |
| QPP2 rate (double) | 8.00% |
| Max QPP contribution | $8,678.40 |
| Max QPP2 contribution | $792.00 |
QPIP Self-Employed (2025)
| Item | Value |
|---|---|
| Rate | 0.878% |
| Max insurable earnings | $98,000 |
| Max premium | $860.44 |
QHSF Self-Employed
0% below $16,780. Graduated to 1% at $59,885. 1% above $59,885.
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Unknown province | Do not apply this skill |
| Unknown parts familiales | 1 part (single) |
| Unknown QHSF income | Apply graduated formula |
Section 2 -- Required Inputs and Refusal Catalogue
Required Inputs
Minimum viable -- province on Dec 31 (must be Quebec), net self-employment income, marital status.
Recommended -- QPP from employment (RL-1), rent/property tax paid, family situation.
Ideal -- complete TP-80, prior TP-1, RL slips.
Refusal Catalogue
R-QC-1 -- Not Quebec resident. "Province is not Quebec on December 31."
R-QC-2 -- Corporations. "Corporate entities file separate Quebec returns."
R-QC-3 -- Part-year resident. "Escalate."
Section 3 -- Transaction Pattern Library
Quebec income tax is computed from TP-80 (Quebec equivalent of T2125). Transaction classification follows the same patterns as ca-fed-t2125. Quebec taxable income may differ from federal due to Quebec-specific rules.
Section 4 -- Worked Examples
Example 1 -- Low Income
Input: Quebec taxable income $30,000. Self-employment $30,000. Single.
Computation:
- Quebec tax: $30,000 x 14% = $4,200. Credit: $18,056 x 14% = $2,527.84. Net tax: $1,672.16
- QPP: ($30,000 - $3,500) x 12.80% = $3,392.00
- QPIP: $30,000 x 0.878% = $263.40
- QHSF: ~$92 (graduated formula)
- Total: ~$5,419.58
Example 2 -- Mid-Range
Input: Quebec taxable income $80,000. Single.
Computation:
- Tax: $53,255 x 14% + $26,745 x 19% = $12,537.25. Credit: $2,527.84. Net: $10,009.41
- QPP: max $8,678.40. QPP2: $696.00. QPIP: $702.40. QHSF: $800.
- Total: ~$20,886.21
Example 3 -- High Income
Input: Quebec taxable income $200,000. Single.
Computation:
- Tax through all 4 brackets: $41,244.68. Credit: $2,527.84. Net: $38,716.84
- QPP: $8,678.40. QPP2: $792.00. QPIP: $860.44. QHSF: $2,000.
- Total: ~$51,047.68
Section 5 -- Tier 1 Rules (When Data Is Clear)
5.1 Separate Provincial Return
Quebec is the only province that administers its own income tax. TP-1 filed with Revenu Quebec; T1 filed with CRA (with 16.5% Quebec abatement on federal tax).
5.2 QPP vs CPP
Quebec residents always contribute to QPP, never CPP. QPP rate: 12.80% (higher than CPP 11.90%). Half deductible, half credited.
5.3 QPIP
Replaces EI maternity/parental benefits in Quebec. Self-employed rate: 0.878%. Fully deductible from Quebec income.
5.4 QHSF
Self-employed pay directly on TP-1. Graduated from 0% to 1% between $16,780 and $59,885. Flat 1% above $59,885.
5.5 Quebec Abatement
16.5% abatement on federal basic tax (on federal T1, line 44000).
Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)
6.1 Solidarity Tax Credit
QST component $360/adult + housing $756 + Northern village $2,005. Reduced by 3% of family income above $40,060. Flag for reviewer.
6.2 Work Premium
Refundable credit based on work income. Varies by family status. Flag for reviewer.
6.3 Quebec vs Federal Income Differences
Quebec taxable income may differ from federal. Always compute independently. Flag for reviewer.
6.4 QPP vs CPP Interaction
If client has both QPP and CPP contributions in the same year (employment outside Quebec), adjustments needed. Flag.
Section 7 -- Excel Working Paper Template
QUEBEC TP-1 -- Working Paper (2025)
A. INCOME
A1. Quebec taxable income (TP-1 line 299) ___________
A2. Net self-employment income ___________
B. QUEBEC TAX
B1. Gross Quebec tax (4 brackets) ___________
B2. Quebec non-refundable credits (x 14%) ___________
B3. Net Quebec tax (B1 - B2, min 0) ___________
C. SOCIAL CONTRIBUTIONS
C1. QPP (Schedule E) ___________
C2. QPP2 ___________
C3. QPIP (Schedule F) ___________
C4. QHSF (line 448) ___________
D. TOTAL QUEBEC OBLIGATIONS
D1. B3 + C1 + C2 + C3 + C4 ___________
REVIEWER FLAGS:
[ ] Province confirmed as Quebec?
[ ] QPP rates used (NOT CPP)?
[ ] Quebec income computed independently?
[ ] QHSF graduated formula applied?
[ ] Quebec abatement noted on federal?
Section 8 -- Bank Statement Reading Guide
Quebec tax is computed from TP-80 data. Bank statement classification follows ca-fed-t2125 patterns. Quebec-specific banks: Desjardins (CSV: Date, Description, Withdrawal, Deposit).
Section 9 -- Onboarding Fallback
ONBOARDING QUESTIONS -- QUEBEC TP-1
1. Province of residence on December 31?
2. Net self-employment income?
3. Marital status and spouse income?
4. Number of dependant children?
5. QPP contributions from employment (RL-1)?
6. QPIP premiums from employment?
7. Rent paid or property tax paid?
8. Municipal address (for solidarity credit)?
9. Medical expenses, charitable donations?
10. Prior year avis de cotisation (TP-1)?
Section 10 -- Reference Material
| Topic | Reference |
|---|---|
| Quebec brackets | Taxation Act (Quebec), s. 750 |
| Non-refundable credits | Taxation Act (Quebec), s. 752+ |
| QPP | Act respecting the QPP, s. 50+ |
| QPIP | Act respecting parental insurance |
| QHSF | Act respecting RAMQ, s. 34 |
| Quebec abatement | ITA (Canada), s. 120(2) |
| Solidarity credit | Taxation Act (Quebec), s. 1029.8.116.12+ |
PROHIBITIONS
- NEVER apply this skill if province is not Quebec on December 31
- NEVER use CPP rates for Quebec residents -- always QPP
- NEVER copy federal taxable income to Quebec without verification
- NEVER forget the QHSF contribution
- NEVER forget the Quebec abatement on the federal return
- NEVER combine with another provincial skill
- NEVER present calculations as definitive
Disclaimer
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
The most up-to-date, verified version of this skill is maintained at openaccountants.com.
Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).