Personal Finance

How do Quebec tuition tax credits work?

  • Last Updated:
  • Oct 20th, 2020 12:21 pm
Oct 18, 2020
3 posts

How do Quebec tuition tax credits work?

My husband and I are will be reporting about $100,000 (him: $35,000, me: $65,000) of income each in 2019.
He has $65,000 of unused non-refundable tax credits carried forward. I have $12,500 of unused tax credits.

How do these refundable tax credits work?

We are supposed to move in Ontario in December, and we're trying to figure out if we should delay our move to January 2021 to use these tax credits. I know Ontario has lower taxes so it's usually more advantageous to move before year end. Should we be taking these non-refundable tax credits into consideration?
1 reply
Jr. Member
Apr 16, 2015
110 posts
Even factoring in these credits, you will still probably pay less tax in Ontario but you should do draft tax returns for both provinces to crunch all the #s before making a decision.

In very rough terms, Quebec gives an 8% credit for your tuition fees, which you can't claim if you move to Ontario. BUT, Quebec's tax rate is about 10 percentage points higher than Ontario's. So, even with claiming these credits, you are still paying more provincial tax in Quebec. Note however that Quebec residents do pay less federal tax because of the Quebec abatement (line 44000 of your return (16.5% of your federal tax otherwise owing). But assuming you are also claiming the federal tuition credit, that likely won't amount to enough to tip the scales in favour of staying in Quebec.

Also remember that you can hold unto those credits in case you ever move back to Quebec.