Health Services Fund – Quebec


The employer HSF contribution rate is generally 2.7% for employers whose total worldwide annual payroll for all associated corporations is $1M or less.19 Since 2015, the rate is reduced to 1.6% for employers in the primary and manufacturing sectors. When the payroll exceeds $1M, the rate increases gradually up to 4.26% when the payroll reaches $5M.

19 Employers in the natural and applied sciences sector can benefit from a relief until 2020, and the base contribution rate for SMEs in the service and construction sectors will gradually decrease as of 2017 to reach 2.25% in 2019.


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 2015 contribution
$0 – $14,285
$14,286 – $29,285
$29,286 – $134,660
$134,661 and more
No contribution
1% of income > $14,285
$150 plus 1% of income > $49,660

20 Indexed annually.