# Live in Quebec work in Vancouver



## crozfader (Aug 2, 2012)

Hi everyone. 

I'm trying to figure out what it would mean from a tax standpoint (payroll deduction/income taxes) to live in Quebec and work in Vancouver as an employee of a company that is based in Vancouver.

Since I would still live in Quebec, I will need to pay income tax in Quebec at a higher rate than BC. I know that there is a way to transfer whatever taxes I paid in BC to the Quebec government (line 438 - up to 45% of income tax paid can be transferred to Quebec).

Since the company is based in Vancouver, tax withholding will be for BC tax rates, which are significantly lower... Also, I would be paying for the CPP and not the QPP (my employer as well)... 

Anyways, I just need to accurately understand what it means tax wise to be living in Quebec and working in another province. I want to make sure I don't get taxed even more than if I lived in Quebec!!! 

Can someone please explain to me how this would work? Let's use $150,000 total income for the sake of example.

In BC, income tax would be $31,500 Federal and $14,500 Provincial; total of $46,000. Would that mean that I could transfer to Quebec 45% of that amount ($20,700) to offset whatever I owe in Quebec provincial taxes?

In Quebec, for a similar income; federal would be $26,300 and provincial $29,000 (total of $55,300). 

Could someone help me with the math?


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## kcowan (Jul 1, 2010)

Where you live on Dec 31 determines who you pay tax to. Your employer needs to remit those taxes to Quebec for you. They also need to pay for your healthcare in Quebec. If you are a subcontractor, then you are responsible for remitting the tax.


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## Pennypincher (Dec 3, 2012)

How do you work in Vancouver but live in Quebec? Are you going home every weekend? 

Like the above poster said, it doesn't matter where you company is headquartered, they remit taxes to the province in which you reside, if you are a regular T4 employee.


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## Homerhomer (Oct 18, 2010)

Pennypincher said:


> Like the above poster said, it doesn't matter where you company is headquartered, they remit taxes to the province in which you reside, .


Not correct.
If the company has no permanent establishment in Quebec (ei no office to report to, the payroll is done out of BC) and it has a permanent establishment in BC, then they will deduct BC payroll taxes, and not Quebec payroll taxes. For me it doesn't make sense that someone who lives in works in Quebec (and vice versa) would have payroll tax deducted from another province but that's how it is. For that purpose home office doesn't constitute permanent establishment. Payroll deductions are not base on where the employee lives (although in most cases this will be the case).

OP will pay higher taxes when filing personal tax return (Quebec rate) because he/she is a resident of Quebec.

If the company has permanent establishment in Quebec than Quebec payroll tax would have been deducted.


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## MoneyGal (Apr 24, 2009)

^ This.


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## Pennypincher (Dec 3, 2012)

I stand corrected. Thanks for clarifying in detail.


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## 6811 (Jan 1, 2013)

Homerhomer said:


> Not correct.
> If the company has no permanent establishment in Quebec (ei no office to report to, the payroll is done out of BC) and it has a permanent establishment in BC, then they will deduct BC payroll taxes, and not Quebec payroll taxes. For me it doesn't make sense that someone who lives in works in Quebec (and vice versa) would have payroll tax deducted from another province but that's how it is. For that purpose home office doesn't constitute permanent establishment. Payroll deductions are not base on where the employee lives (although in most cases this will be the case).
> 
> OP will pay higher taxes when filing personal tax return (Quebec rate) because he/she is a resident of Quebec.
> ...


HH is right'

As a Quebec resident working or reporting to an office of a multinational with offices in Ontario for over 30 years I was taxed at the Ontario rate, and transferred 45% of what I paid Federally to Quebec (and usually had to pay even more to Revenue Quebec). I did fill out a form to have more tax deducted at source so that I'd limit the amount owing at tax time. 

As I understand it, the feds collect income tax in all provinces but Quebec and transfer the appropriate amounts to the Provinces. Quebec is the only Province that has their own income tax forms to be filled out in addition to the Federal forms. IMHO it's really a waste, in that it a duplication of effort and one of the many reasons why the income tax rates in Quebec are the highest in the country. 

PennyPincher,

Suspect Croz... may work from home and report to a company office in BC. That's what I did for years.


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