Income taxes can be quite high in Canada, particularly in Québec. Thankfully, there are several tax rebates and credits available to lower your tax obligations.
In addition to the federal tax rebates and credits, there are some tax credits specific to Québec residents, including the refundable Solidarity Tax Credit (STC). Let’s take a closer look at this tax credit, what you need to qualify, and how much you can expect to get.
Key Points
- The Solidarity Tax Credit is a refundable tax credit for low- to moderate-income households.
- Eligible individuals and families can receive a tax credit of up to $800 or more per year.
- STC payment dates for each tax year take place from July of the current year to June of the next year.
What Is The Solidarity Tax Credit (STC)?
The Solidarity Tax Credit is a Quebec-based refundable tax credit for households with low-to-moderate incomes. Administered by Revenu Québec, this provincial tax benefit offers eligible residents and families a tax credit of up to $800 or more a year.
The STC is made of three components:
- Housing
- Quebec Sales Tax (QST)
- Individuals living in northern villages
While you might not be eligible for all of these components, you’re allowed to claim the Solidarity Tax Credit if you qualify for at least one.
The STC is based on your financial situation on December 31st of the previous year.
Which Of The 3 STC Components Are You Eligible For?
To receive the Solidarity Tax Credit, you need to be eligible for at least one of the following components:
Housing Component
To receive the housing component of the STC, you must prove that you or your spouse (if applicable) owned or rented a qualifying home on December 31st of the previous year.
QST Component
The QST component helps offset the financial burden of the QST on eligible individuals. To be eligible for the QST component, you must have lived by yourself or with one or more persons under the age of 18 in a home throughout the previous year.
Component For Individuals Living In Northern Villages
The component for individuals living in northern villages compensates for the higher cost of living in these locations compared to other regions in Quebec. You must live in one of the 14 northern villages designated by the Quebec government to qualify for this component.
General Eligibility Requirements For The Solidarity Tax Credit?
To be eligible for the Solidarity Tax Credit from July to June of the current tax year, you’ll have to file a tax return and meet all of the following criteria on December 31 of the previous year:
- You were a Quebec resident
- You were 18 years old or more. Or, if you were not yet 18, you:
- Had a spouse
- Were a parent of a child
- Were an emancipated minor
- You were a Canadian citizen, permanent resident or protected person, or a temporary resident or temporary resident permit holder who lived in Canada for the last 18 months.
Income Eligibility Threshold
Your “family income” is what appears on Line 275 of your tax return. If you had a spouse on December 31st of the previous tax year, that amount will also be on Line 275 of their return. If at that time, your family income was equal to or greater than the maximum family income in the list below, you are no longer eligible for the Solidarity Tax Credit.
Here are the current maximum family income thresholds based on family composition:
| Maximum Income Threshold | |
| Individuals With a Spouse | $67,067* |
| Single-Parent Families | $61,500* |
| Single Individuals | $61,500 |
*For individuals with a spouse and single-parent families, add $2,517 to the maximum for each dependent child.
How Much Will You Receive?
The amount you can get per tax year depends on the following components:
- Your housing situation on December 31st of the previous tax year
- The amount of Quebec Sales Tax (QST) being offset by the QST component
- Where you live — costs are higher in northern villages compared to the rest of QC
To get a basic estimation of the STC amount that you’re eligible for, you can use the Solidarity Tax Credit Estimator on the Revenu Québec website.
When Will You Get The Solidarity Tax Credit (STC) Payment?
If you qualify for the Solidarity Tax Credit, the CRA will send you a notice with your credit amount for that tax period, along with the information they used to calculate it.
The amount you qualify for will impact your STC payment dates. If you qualify for:
| Payment Amount | Frequency | Payment Dates |
| $800 or more | You’ll receive an STC payment once per month within the first five days of the month. | July 2024 to June 2025 |
| $241 to $799 | You’ll receive an STC payment four times per year | July 2024October 2024January 2025April 2025 |
| $240 or less | You’ll receive your payment in one lump sum in July | July 2024 |
Monthly Solidarity Tax Credit Payment Dates 2024
The payment dates for each tax year start from July to June of the next year. Currently, the remaining payment dates for July 2023 to June 2024 are as follows:
- January 5, 2024
- February 5, 2024
- March 5, 2024
- April 5, 2024
- May 3, 2024
- June 5, 2024
How To Claim The Solidarity Tax Credit (STC)
To claim the STC, you must complete Schedule D of your income tax return. Schedule D is where you enter any information related to the three components of the STC.
To get the full STC amount for a particular payment term, you must claim it no later than four years after the end of the taxation year used to calculate the credit for that period.
Note: If you qualify for the credit but don’t complete Schedule D, you’ll only receive the basic amount, which consists of the QST component and spousal amount (when applicable).
If you are not registered for direct deposit, don’t forget to include your registration form when claiming the STC. As a rule, you must register for direct deposit to receive the STC payments.
What Happens If I Owe More Taxes Than My Solidarity Tax Credit?
A tax credit is “refundable” when the amount you qualify for is more than the taxes you owe.
In other words, you’re only responsible for paying what the credit doesn’t cover. So, if you owe $1,500 in income taxes, but you qualify for a $500 Solidarity Tax Credit, you’d only owe $1,000.
It should also be noted that if you receive STC and you have outstanding government debts, the government can use these payments to cover your debt. However, there are certain restrictions on how they may use your STC payments to offset government debts.
For instance, if your family income used to determine your entitled STC payment amount is less than the maximum family income for the tax year, Revenu Québec will not use any more than half of the amount of each STC payment of the credit to repay your government debt.
What If I’m Unable To Pay My Taxes?
If you’re unable to pay your taxes, you have the following options:
- Cancel or waive penalty fees or interest – If a legitimate financial issue is stopping you from paying your tax debt, the Canada Revenue Agency (CRA) may waive any penalties and interest. Acceptable circumstances include actions by the CRA, exceptional situations, financial hardship, and other provable causes.
- Government payment arrangement – The CRA also offers installment plans for people who can’t pay taxes due to financial hardship. These arrangements allow you to repay your tax debt over time and are based on your financial ability. The CRA can even apply tax credits or rebates, like the STC, to your unpaid balance.
- Personal loans – Alternatively, you could get a personal loan to spread out your tax debt, which is a viable option if you can qualify for a low interest rate. One key to obtaining a low rate is to have a decent credit score (at least 660). So, make sure to check your credit score before you apply and take steps to improve it if necessary.
Are There Other Quebec Tax Credits Or Rebates?
Yes. As a Quebec resident, you may be eligible for other provincial tax benefits, like:
Consumption Tax Rebates
In some cases, you might be entitled to a rebate on the consumption taxes that you pay in Quebec. These taxes are based on your expenditures, rather than your income. You may qualify for a GST/HST or QST rebate if you paid taxes on certain types of goods and services.
Collecting And Remitting Consumption Taxes
If you operate a business in Quebec, you may have to collect and remit certain types of consumption taxes on your sales, including the sale of goods and rental dwellings.
Taxable, Zero Rates or Tax-Exempt Goods And Services
In Quebec, consumers must pay GST and QST when buying goods and services that are related to situations, such as health, transport, and groceries. You also have to pay specific taxes on certain goods and services, like lodging, fuel, insurance premiums, and alcoholic beverages. However, some goods/services are zero-rated or tax-exempt.
Tax Credit For Childcare Expenses
Revenu Québec has a number of tax measures exclusively for families, including the Tax Credit For Childcare Expenses. The rate of this tax credit is based on your family net income.
Senior Assistance Tax Credit
If you meet certain conditions, are a Quebec resident, and were at least 70 years of age on December 31st of the previous tax year, you may be eligible for a refundable tax credit for senior citizens. If applicable, your spouse must meet specific conditions, too, including the following:
- Be a Canadian citizen or permanent resident
- Be a Quebec resident
- Be at least 70 years old on December 31st old the previous year
Want To Receive The Solidarity Tax Credit (STC)?
The Solidarity Tax Credit is a great way to minimize your income tax obligations. You may be eligible if you’re a Quebec resident and meet certain conditions. Before you submit your income tax return, remember to do research and speak with a tax expert to find out if you qualify for any tax breaks, like the Solidarity Tax Credit.
