Financial assistance and tax credits for senior citizens

Published on 11/21/2024

The government of Quebec has announced measures it will implement to financially support senior citizens in the coming years.

Increase in the tax credit for home-support services for seniors.

This tax credit, which was equal to 35% in 2021, will gradually increase by 1 percentage point every year. That means it will reach 40% in 2026. The formula used to calculate the tax credit will be modified in 2022 to introduce new thresholds for family income. In other words, senior citizens with a lower annual income will be able to benefit from a greater tax credit. And more senior citizens will be able to take advantage of this tax credit. Moreover, adjustments will be made to the thresholds as well as to the amount of eligible expenses incurred by individuals living in a rented unit.

Increase in the senior assistance tax credit.

Introduced in 2018, the senior assistance tax credit will be increased by $191 per eligible individual starting in 2021. The maximum amount will be $400 per person, subject to the decrease calculated in line with the household income. The other modalities of the tax credit remain unchanged. An individual will receive the credit after they file their 2021 income tax report. The threshold for the tax credit remains unchanged: $23,575 in 2021. After the change, senior citizens aged 70 years or over will be able to benefit from the tax credit if they have a maximum household income of:

$31,575 for seniors living alone
$54,340 for a couple consisting of two senior citizens aged 70 or older

Additional support for senior citizens.

In 2021, the federal government announced it was providing additional support for senior citizens aged 75 or older in June 2022. They received a one-time taxable payment of $500 in August. For seniors aged 75 or older, the Old Age Security will be increased by 10% starting in July 2022. Moreover, the federal government has announced a one-time payment to beneficiaries of the Guaranteed Income Supplement who received the Canada Emergency Response Benefit or the Canada Recovery Benefit in 2020.