Quebec City

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Taxes and Tipping

An overview of applicable taxes on goods and services and the local customs for tipping in Quebec City.

Sections

A. Sales Taxes

In Quebec City, as in the rest of Quebec, two types of sales taxes apply to most goods and services:

  1. Goods and Services Tax (GST):

    • A federal tax of 5% applies to most goods and services in Canada, including Quebec.

  2. Quebec Sales Tax (QST):

    • A provincial tax of 9.975% applies to most goods and services in Quebec.

    Combined Total Sales Tax: When shopping or dining out in Quebec City, you’ll typically pay a total of 14.975% in sales tax (GST + QST). This is automatically added to your bill at the point of sale.

    Key Notes:

    • Prices displayed in stores or menus often do not include taxes, so expect the final price to be higher than the listed price.
    • Some items, such as basic groceries (e.g., fresh fruits, vegetables, bread, milk), are exempt from sales taxes.

B. Income Taxes

If you are a new resident or planning to work in Quebec City, you’ll need to understand the income tax system, which includes both federal and provincial taxes.

  1. Federal Income Tax:

    • Canada has a progressive tax system, meaning the tax rate increases as your income rises. Federal tax rates range from 15% to 33%, depending on your income bracket.

  2. Quebec Provincial Income Tax:

    • Quebec has its own income tax system, separate from the federal system. Provincial tax rates range from 15% to 25.75%, depending on your income bracket.

    Key Notes:

    • Quebec residents file two separate tax returns: one for the federal government (Canada Revenue Agency, CRA) and one for the provincial government (Revenu QuΓ©bec).
    • Quebec has some of the highest income tax rates in Canada, but this is offset by extensive social benefits, such as affordable healthcare, subsidized childcare, and public services.

  3. Tax Filing Deadlines:

    • The tax year runs from January 1 to December 31.
    • Tax returns are typically due by April 30 of the following year.
    • If you are self-employed, you have until June 15 to file, but any taxes owed must still be paid by April 30.

  4. Tax Credits and Deductions:

    • Quebec offers various tax credits, such as for childcare expenses, tuition fees, and public transit.
    • If you’re a newcomer, you may qualify for specific deductions or credits. Consult a tax professional or Revenu QuΓ©bec for guidance.

C. Property Taxes

If you plan to buy property in Quebec City, you’ll need to pay municipal property taxes. These taxes fund local services like road maintenance, snow removal, and public infrastructure.

  1. Rates:

    • Property tax rates vary depending on the neighborhood and property value. In Quebec City, the average rate is approximately 1% to 1.5% of the property’s assessed value.

  2. Payment:

    • Property taxes are typically paid annually or in installments. If you have a mortgage, your lender may include property taxes in your monthly payments.

D. Other Taxes

  1. Alcohol and Tobacco Taxes:

    • Alcohol and tobacco products are heavily taxed in Quebec. Expect higher prices compared to other regions.

  2. Carbon Tax:

    • Quebec has a carbon tax that affects fuel prices. Gasoline and heating costs may be slightly higher than in other provinces.

2. Tipping in Quebec City

Tipping is an important part of the culture in Quebec City, and it is expected in many service-related industries. Here’s what you need to know:

A. Restaurants and Bars

  1. Standard Tipping Rate:

    • The standard tip in Quebec City is 15% to 20% of the pre-tax total of your bill.
    • Tipping less than 15% is considered poor etiquette unless the service was unsatisfactory.

  2. How to Tip:

    • If paying by card, the payment terminal will prompt you to add a tip (usually as a percentage or dollar amount).
    • If paying in cash, leave the tip on the table or hand it directly to the server.

  3. Service Charges:

    • For groups of 8 or more, some restaurants automatically add a service charge (usually 15% to 18%) to the bill. Check your bill to avoid double-tipping.

B. Taxis and Rideshares

  1. Standard Tipping Rate:
    • Tip taxi or rideshare drivers (e.g., Uber) 10% to 15% of the fare.
    • For short rides or exceptional service (e.g., helping with luggage), rounding up to the nearest dollar is also acceptable.

C. Hotels

  1. Housekeeping:

    • Leave a tip of $2 to $5 CAD per night for housekeeping staff. Place the money in an envelope or leave it on the pillow with a note indicating it’s for housekeeping.

  2. Bellhops:

    • Tip $2 to $5 CAD per bag for bellhops who assist with your luggage.

  3. Concierge:

    • If the concierge provides a special service (e.g., booking tickets, making reservations), tip $5 to $20 CAD, depending on the complexity of the request.

D. Hairdressers, Spas, and Personal Services

  1. Standard Tipping Rate:
    • Tip 15% to 20% of the total bill for haircuts, spa treatments, or other personal services.

E. Delivery Services

  1. Food Delivery:

    • Tip food delivery drivers (e.g., Uber Eats, DoorDash) 10% to 15% of the total bill, or at least $2 to $5 CAD for smaller orders.

  2. Grocery Delivery:

    • For grocery delivery services, tip $5 to $10 CAD, depending on the size of the order and the level of service.

F. Cultural Considerations

  1. Why Tipping is Important:

    • In Quebec, as in the rest of Canada, tipping is a significant part of income for service workers. Minimum wage for tipped employees is lower than the general minimum wage, so tips help bridge the gap.

  2. Politeness and Gratitude:

    • Quebecers value politeness and friendliness. Saying β€œmerci” (thank you) when tipping is appreciated and reflects good manners.

  3. Language:

    • While most service workers in Quebec City speak English, French is the primary language. A simple β€œmerci beaucoup” (thank you very much) can go a long way in showing respect for the local culture.

3. Practical Tips for Visitors and New Residents

  1. Carry Small Bills and Coins:

    • Having small denominations of cash is helpful for tipping in situations where card payments aren’t accepted (e.g., housekeeping, bellhops).

  2. Check Your Bill:

    • Always review your bill to see if a service charge has been added before tipping.

  3. Use Apps for Calculations:

    • If you’re unsure how much to tip, use a smartphone app or the tipping prompt on payment terminals to calculate the appropriate amount.

  4. Learn Basic French Phrases:

    • While tipping is universal, using French phrases like β€œmerci” (thank you) or β€œc’est pour vous” (this is for you) can enhance your interactions.

By understanding the tax and tipping systems in Quebec City, you’ll be better prepared to navigate daily expenses and show appreciation for local services. Whether you’re visiting or settling in, these practices will help you adapt to the city’s cultural and financial norms. Bon voyage!