Indexing of the parameters of the personal income tax system, social assistance benefits and certain government fees for the 2025 taxation year

QUÉBEC, Nov. 21, 2024 /CNW/ - The Ministère des Finances du Québec announced today that the indexing rate, which will apply as of January 1, 2025 with regard to parameters of the personal income tax system and social assistance benefits, will be 2.85%.

$1.2 billion to protect the purchasing power of Quebecers

The indexing rate of 2.85% represents protection of the purchasing power of Quebecers equivalent to $1.2 billion for the 2025 taxation year.

Concretely, this means that the value of most tax measures aimed at individuals will increase in a manner comparable to the increase in consumer prices observed in Québec in 2024. This increase corresponds to a tax relief of $1.1 billion for taxpayers.

The indexation will also allow social assistance recipients to benefit from more than $93 million in additional financial assistance in 2025.

Rate indexation

In 2022, the government announced that rate indexation would be capped at 3% until 2026 to help citizens cope with the rising cost of living.

For rates whose indexation is calculated pursuant to section 83.3 of the Financial Administration Act, the indexation rate for 2025 will be 2.85%, which is below the 3% cap. Indexation of these rates had been limited to 3% in 2023 and 2024.

Related link:

The document entitled "Parameters of the Personal Income Tax System for 2025" presents the main changes stemming from the indexing announced today and is available in the "Publications" section of the Ministère des Finances website at www.finances.gouv.qc.ca.

Twitter Facebook LinkedIn

SOURCE Ministère des Finances

Source: Direction des communications, Ministère des Finances, Tel.: [phone]