Personal Taxation Statistics (Taxation Year 1995) SUMMARY Personal income tax statistics for taxation year 1995 On December 12, 1997, the Deputy Prime Minister and Minister of State for the Economy and Finance, Bernard Landry, released the Statistiques fiscales des particuliers (personal income tax statistics) for taxation year 1995. In addition to showing Québec income tax paid by taxpayers, the document gives a detailed portrait of its main components and how they have changed compared to 1994. In summary, the tax statistics for 1995 show that: there were 4.8 million Québec taxpayers; Quebecers declared income of $120.1 billion; Québec income tax payable amounted to $12.7 billion, up 4.4 per cent compared to 1994; the average tax rate, i.e., total tax payable as a percentage of total income, was 10.6 per cent. SUMMARY OF PERSONAL INCOME TAX STATISTICS QUÉBEC 1995 1 Number of taxpayers (in millions) Number Taxpayers who paid tax 3.0 Taxpayers who paid no tax 1.8
Total 4.8 Main components (in billions of dollars) Amount Total income 120.1 Tax payable including surtax 12.7 Average tax rate (as a percentage) Proportion Tax payable / Total income 10.6 1 A more detailed table is given in the appendix. Taxpayer profile Number of taxpayers The tax statistics for 1995 indicate that there were 4.8 million taxpayers, an increase of 1.7 per cent compared to 1994. Of these, 48.6 per cent are women. In addition, almost 4 out of 10 of those filing a tax return, i.e., 1.8 million taxpayers, paid no personal income tax in 1995. Total income In 1995, Québec taxpayers declared income of $120 billion. Employment income accounted for the greatest share of total income, i.e., 67.9 per cent. Income from retirement benefits accounted for 11.3 per cent of total income. Other sources of income, in particular employment insurance benefits, business and professional income, non-taxable social benefits and taxable capital gains, made up 17.7 per cent of total income.
Deductions In 1995, deductions taxpayers were allowed in calculating taxable income amounted to $15.2 billion. These deductions include additional expenses incurred to earn income, amounts eligible for tax deferral (for instance, registered retirement savings plans), the taxable capital gains exemption and certain other allowable expenses. Deductions relating to retirement accounted for 43.1 per cent of deductible amounts allowed. Non-taxable social benefits accounted for 29.9 per cent of the total. Non-refundable tax credits
In 1995, non-refundable tax credits totaled $8.8 billion. These credits are generally used to recognize certain expenditures made to cover essential needs (for instance, the credit for dependent children or for a person living alone) or other situations (for instance, the credit for age or for medical expenses). The basic amount alone accounted for 64.5 per cent of credits allowed. Credits to cover essential needs and for retirement represented 18.3 and 4.9 per cent respectively of the total. Tax payable In 1995, tax payable by Québec taxpayers amounted to $12.7 billion. Taxpayers with total income greater than $50 000 declared 31.5 per cent of total income and paid 45.7 per cent of income tax. Taxpayers in this group filed 10.2 per cent of all tax returns. Taxpayers who declared income of less than $10 000 paid 0.1 per cent of income tax though they declared 5.3 per cent of total income and filed 25.5 per cent of returns.
Taxpayers from 25 to 44 paid the greatest share of income tax, i.e., 48 per cent, while those from 45 to 64 paid 40.1 per cent. Other taxpayers, namely those under 25 and those over 64, paid 2.4 and 9.6 per cent of income tax respectively. Copies of Statistiques fiscales des particuliers can be obtained from: Les Publications du Québec 1500 D, boulevard Charest Ouest
Appendix Sainte-Foy (Québec) Tel : (418) 643-5150 or 1 800 463-2100 NUMBER OF TAXPAYERS AND MAIN COMPONENTS OF DECLARED INCOME, QUÉBEC 1995 Number of taxpayers (thousands) Number Taxpayers who paid tax 3 019 Taxpayers who paid no tax 1 829 Total 4 848 Main components of declared income (in millions of dollars) Amount Income Total income 120 084 Deductions 1-14 898 Taxable income 105 186 Tax payable Tax on taxable income 20 958 Non-refundable tax credits and tax reductions 2-8 498 Tax payable before surtax 12 460
Personal surtax 261 Tax payable 12 721 Average tax rate (as a percentage) Proportion Tax payable / Total income 10.6 1 These deductions represent only the total amounts used in calculating taxable income. They differ from the total of the amounts entered on tax returns. For some taxpayers, total deductions granted exceed total declared income. For these taxpayers, the excess of deductions over total income is not taken into account in calculating taxable income. Accordingly, the amount of deductions entered on returns for 1995 is $15 186 million while the amount of deductions used is $14 898 million. 2 Non-refundable tax credits and tax reductions represent solely the total amounts used to calculate tax payable. For some taxpayers, total non-refundable tax credits and tax reductions granted exceed tax on taxable income. For these taxpayers, only the portion necessary to reduce tax payable to zero is used. Accordingly, total non-refundable tax credits and tax reductions granted amount to $9 878 million while the portion used is $8 498 million. Home Français The Minister The Ministry The Budget Publications Press Releases Search What's New? Site Map Other Links Comments Gouvernement du Québec Gouvernement du Québec, 1999