Health Services Fund – Quebec

Employers

The employer HSF contribution rate is generally 2.7% for employers whose total worldwide annual payroll for all associated corporations is $1,000,000 or less.19 The rate varies from 2.7% to 4.26% for employers whose total payroll is greater than that amount.


19 Employers in some scientific sectors may benefit from a reduction until 2020.

Individuals

Every individual, other than a trust, resident in Quebec has to pay an HSF contribution. All of the individual’s income (i.e. business income earned in Quebec, pension income, property income and capital gains) is subject to the contribution except, among others, employment income, taxable support payments received, the grossed-up portion of dividends received from taxable Canadian corporations as well as any OAS benefits. Certain deductions can reduce the amount subject to the contribution. The contribution must be included in the calculation of instalments to be paid by individuals.

Income subject to contribution20 2014 contribution
$0 – $14,135
$14,136 – $29,135
$29,136 – $134,140
$134,141 and more
No contribution
1% of income > $14,135
$150 plus 1% of income > $49,140
$1,000

20 Indexed annually.