Over the last 15 years, inter-provincial employees have become a more common phenomenon. An inter-provincial employee is one who works in one province/territory and holds a primary residence in another. The National Capital Region is the federal designation given to Ottawa, Ontario plus Gatineau, Québec as well as some surround communities. Inter-provincial employees are common amongst The National Capital Region, especially between Ottawa and Gatineau given the close proximity between the two cities.
What You Need to Know About Living in Gatineau and Working in Ottawa
To work in one province and live in another fairly common, though it requires knowing a few details and ensuring you file the correct income taxes. According to the Canada Revenue Agency, one must file their yearly tax return base on their province of residence on the last day of the tax year they are filing for. This would mean that a resident of Gatineau would file taxes with Revenu Québec if they resided in Gatineau on December 31 of the tax year they are filing.
If living in Québec and earning income outside of Québec, you enter that income on your provincial tax return. Information required for this will likely be on the T4 provided to you by your Ontario employer. There is additional information required on your income taxes if you’ve earned income outside of your province of residence, therefor using a tax software or knowledgable accountant is recommended.
If you work in Ottawa, Ontario, your employer will have most likely withheld Federal income tax from your paycheck as if you are a resident of Ontario. You may request a tax transfer from the province of Ontario to the province of Quebec to offset the Quebec provincial taxes. This transfer is eligible up to 45% of the withheld tax.
Benefits of Living in Gatineau and Working in Ottawa
- Ottawa has more employers than Gatineau as primary employers are the Public Service of Canada, the Health Sector as well as the booming tech industry
- Gatineau has a lower cost of living with cheaper real estate, car insurance and electricity
- If your native language is English, living in Gatineau gives you the opportunity to speak french every day and learn a new language without the pressure of speaking French in your place of work
Cons of Living in Gatineau and Working in Ottawa
- Gatineau, Quebec income taxes are higher than Ottawa, Ontario
- Though you are taxed less on your income up front if you live Gatineau and work in Ottawa, when you file your taxes you may find you owe more taxes than you’ve already paid directly from your paychecks
- The process of filing your income taxes with Revenu Québec when you work in Ottawa may feel daunting or complicated if you do not have the proper informed resources
Did you like our Live in Gatineau, Work in Ottawa: What About Taxes article? Check out our other resources here.
If you are seeking advice on buying a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.