Quebec vs Ontario Taxes 2026

Higher taxes, but $8.70/day childcare and half-price housing. Is Quebec's trade-off worth it?

Last Updated: January 2026 | Source: CRA, Revenu Québec & Provincial Authorities

The Trade-Off at a Glance

Quebec

25.75%

Top Provincial Rate

Sales Tax: 14.975% (GST+QST)

Childcare: $8.70/day

Home Price: ~$550K (Montreal)

Ontario

13.16%

Top Provincial Rate

Sales Tax: 13% HST

Childcare: $1,500+/month

Home Price: ~$1.1M (Toronto)

The Big Picture: Quebec charges significantly higher taxes, but delivers tangible benefits: Canada's most affordable childcare, much lower housing costs, and generous family programs. For young families, Quebec often comes out ahead despite higher tax rates.

Income Tax Brackets Comparison 2026

Quebec Provincial Tax Brackets

Income RangeProvincial RateCombined Rate (Fed + Prov)
$0 - $51,78014%26.53% - 27.53%
$51,780 - $103,54519%37.12%
$103,545 - $126,00024%45.71%
Over $126,00025.75%53.31%

Ontario Provincial Tax Brackets

Income RangeProvincial RateCombined Rate (Fed + Prov)
$0 - $51,4465.05%20.05%
$51,446 - $102,8949.15%29.65%
$102,894 - $150,00011.16%37.16%
$150,000 - $220,00012.16%43.41%
Over $220,00013.16%53.53%
Key Difference: Quebec's lowest bracket starts at 14% (vs Ontario's 5.05%). Even low-income earners pay significantly more in Quebec. The gap narrows at higher incomes—both provinces hit ~53% at the top—but Quebec gets there much faster.

Real Tax Comparison at Different Incomes

Total combined federal + provincial income tax at common salary levels:

Annual Income Quebec Tax Ontario Tax Difference
$50,000 $9,441 $7,822 Quebec pays $1,619 more
$75,000 $17,074 $14,283 Quebec pays $2,791 more
$100,000 $25,457 $21,694 Quebec pays $3,763 more
$150,000 $45,089 $39,524 Quebec pays $5,565 more
$200,000 $66,744 $61,231 Quebec pays $5,513 more

At $100,000 income, Quebec taxes cost:

$3,763 more per year

Plus ~$1,000/year more in sales tax (14.975% vs 13%)

Quebec's Secret Weapon: $8.70/Day Childcare

Quebec's CPE Childcare Program

Quebec's subsidized daycare program (CPE - Centre de la petite enfance) charges just $8.70 per day per child for eligible families. This is a game-changer for young families.

Quebec (CPE)

$8.70/day

~$190/month per child

Ontario (Average)

$75/day

~$1,600/month per child

Childcare Savings Calculator

Scenario Quebec Cost Ontario Cost Annual Savings in QC
1 child, full-time $2,280/year $19,200/year $16,920
2 children, full-time $4,560/year $38,400/year $33,840

Family with 2 kids in daycare saves:

$33,840/year in childcare

This alone can offset $30K+ in extra Quebec taxes

The Catch: CPE waitlists can be 1-2+ years in urban areas. Private daycare in Quebec costs more but is still cheaper than Ontario due to additional subsidies. Plan ahead if you're moving for this benefit.

Housing: Quebec's Other Major Advantage

Category Montreal Toronto Difference
Average Home Price $550,000 $1,100,000 Montreal 50% cheaper
1BR Apartment Rent $1,600/month $2,500/month Montreal 36% cheaper
Utilities (monthly) $100 $175 Montreal 43% cheaper
Car Insurance (annual) $700 $2,000 Montreal 65% cheaper
Overall Cost of Living Montreal is ~25-30% cheaper overall
Hydro-Québec Advantage: Quebec's government-owned utility provides some of the cheapest electricity in North America. Combined with cheaper housing, utility bills can be 40-50% lower than Ontario.

The Complete Picture: Who Comes Out Ahead?

Scenario 1: Young Family, $100K Household Income, 2 Kids

CategoryQuebecOntario
Extra Income Tax +$3,763 -
Extra Sales Tax (~$50K spending) +$988 -
Childcare Savings (2 kids) -$33,840 -
Housing Savings (rent difference) -$10,800 -
Car Insurance Savings -$1,300 -
NET ANNUAL BENEFIT Quebec saves $41,189 -

Scenario 2: Single Professional, $150K Income, No Kids

CategoryQuebecOntario
Extra Income Tax +$5,565 -
Extra Sales Tax (~$70K spending) +$1,383 -
Childcare Savings $0 -
Housing Savings (rent) -$10,800 -
Car Insurance Savings -$1,300 -
NET ANNUAL BENEFIT Quebec saves $5,152 -

The Verdict

Quebec is financially better for most people

The lower cost of living, especially housing and childcare, typically outweighs the higher taxes—unless you earn $200K+ with no children.

The Language Factor: Bill 96 and French Requirements

French Language Requirements (Bill 96)

Quebec's Bill 96 (2022) strengthened French language requirements:

  • Businesses with 25+ employees must operate primarily in French
  • Government services default to French (English available but not guaranteed)
  • Immigrants have 6 months to learn French for government services
  • Commercial signage must be predominantly French

Living in English: What's Realistic?

Montreal (Downtown, West Island, NDG): Very English-friendly. You can work, shop, and socialize largely in English.
Montreal suburbs & regions: French increasingly necessary.
Quebec City & elsewhere: French essential for daily life.

For career advancement in most fields, French proficiency becomes important. Many professionals find that learning French opens doors and improves quality of life.

Who Should Choose Quebec?

Quebec is Ideal For...

  • Young families needing affordable childcare
  • First-time homebuyers priced out of Ontario
  • Those comfortable learning/using French
  • People seeking vibrant arts/culture scene
  • Workers in tech, games, aerospace (strong QC industries)
  • Anyone prioritizing work-life balance

Stay in Ontario If...

  • You're unwilling/unable to learn French
  • Your career requires Bay Street finance access
  • You earn $200K+ with no children
  • You need proximity to US business markets
  • You work in federal government (headquarters in Ottawa)
  • Family/support networks are in Ontario

Calculate Your Exact Tax in Each Province

See your personalized tax breakdown:

Quebec Tax Calculator Ontario Tax Calculator

Frequently Asked Questions

How much higher are Quebec taxes compared to Ontario?

Quebec taxes are approximately $2,000-$6,000 higher per year depending on income. At $75,000, you'd pay about $2,800 more. At $150,000, the difference is approximately $5,500. However, Quebec's lower cost of living often more than compensates.

What is Quebec's $8.70 childcare program?

Quebec's CPE (Centre de la petite enfance) program offers subsidized daycare at $8.70/day for eligible families. This can save $15,000-$35,000+ per year compared to Ontario childcare costs. However, waitlists can be 1-2+ years.

Is Montreal cheaper than Toronto?

Significantly cheaper. Montreal's average home price is about $550,000 vs Toronto's $1.1M. Rent, car insurance, and utilities are also much lower. Overall, Montreal is 25-30% cheaper than Toronto.

Do I need to speak French to live in Quebec?

In central Montreal, you can largely function in English. However, French is increasingly important for career advancement and integration. Outside Montreal, French is essential. Bill 96 has strengthened French requirements for businesses and services.

What is the QST and how does it compare to HST?

QST (Quebec Sales Tax) is 9.975%, added to the 5% federal GST for a total of 14.975%. Ontario's HST is 13%. This means Quebec residents pay about 2% more on purchases—roughly $500-$1,000 extra per year.

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Disclaimer: This comparison provides general information for educational purposes only. Tax laws and benefit programs change frequently. Childcare subsidies depend on eligibility criteria. Consult a qualified tax professional for advice specific to your situation. Data sourced from the Canada Revenue Agency, Revenu Québec, and provincial authorities as of January 2026.