The Québec abatement is a tax reduction given to Québec residents on their federal taxes. It exists because Québec collects its own provincial income tax and some other taxes directly, unlike other provinces.
How It Works
Federal taxes for Québec residents are reduced by a set percentage (16.5%). This recognizes that Québec handles programs and tax collection that the federal government covers in other provinces. The reduction is applied automatically when filing a tax return as a Québec resident.
Final Thoughts
The Québec abatement ensures fairness by avoiding double taxation. It reflects the unique tax-sharing arrangement between the federal and Québec governments.