Line 42800 on Your Tax Return: Form 428, T2203, and Quebec

Line 42800 on the T1 return is where you enter your provincial or territorial income tax for the year. The figure comes from Form 428 for the province or territory where you lived on December 31, and it sits in Step 6 of the return alongside your net federal tax.1Canada Revenue Agency. Line 42800 – Provincial or Territorial Tax

Every province and territory except Quebec collects its income tax through this line on your federal return. Rates and brackets are set by each jurisdiction, so the amount owed on the same taxable income varies depending on where you lived at year-end.

How to Calculate the Amount Using Form 428

You complete Form 428 for your province or territory, and the final number transfers to Line 42800 on your T1. The CRA includes the correct version of Form 428 in the tax package for your jurisdiction, and the form mirrors the federal calculation but uses provincial rates and credits.1Canada Revenue Agency. Line 42800 – Provincial or Territorial Tax

Form 428 moves through three stages:

  • Apply your province’s progressive tax brackets to the taxable income from Line 26000 of your T1.2Canada Revenue Agency. Line 26000 – Taxable Income
  • Subtract your provincial non-refundable tax credits. As with federal credits, these can reduce your provincial tax to zero but no lower.
  • Add any provincial surtaxes or additional taxes. Ontario, for example, layers a surtax on top once provincial tax passes certain thresholds, and some provinces require extra worksheets or schedules.

The result goes on Line 42800. If you file on paper, attach the completed Form 428 to your return.1Canada Revenue Agency. Line 42800 – Provincial or Territorial Tax

When to Use Form T2203 Instead

Form 428 assumes your income is tied to a single province or territory. If it isn’t, you use Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, and the number from that form goes on Line 42800 in place of the Form 428 result.1Canada Revenue Agency. Line 42800 – Provincial or Territorial Tax

T2203 applies in two situations:

  • You lived in a Canadian province or territory on December 31, but some or all of your business income (including income as a retired, inactive, or limited partner) came from a permanent establishment outside your home province or outside Canada.
  • You were a non-resident of Canada throughout the year and either carried on business in more than one province or territory, or received employment income for duties performed in more than one jurisdiction.

If You Lived in Quebec on December 31

Quebec administers its own provincial income tax through a separate return filed with Revenu Québec. You do not complete Form 428 for Quebec, and Line 42800 on your federal T1 is usually left blank or zero. The exception is if you also had business income from a permanent establishment in another province or territory. In that case, you use Form T2203 to calculate tax owed to those other jurisdictions and enter that amount on Line 42800; your Quebec tax stays on the provincial return.1Canada Revenue Agency. Line 42800 – Provincial or Territorial Tax

Line 42800 Is Not the Same as Line 42000

The two lines are close in number and often mixed up. Line 42000 is your net federal tax, meaning your federal tax on taxable income after federal non-refundable credits and other federal adjustments.3Canada Revenue Agency. Line 42000 – Net Federal Tax Line 42800 is your provincial or territorial tax. Both feed into your total payable in Step 6 of the return, but they use different rates, different brackets, and different credit amounts, and each is calculated on its own form.

Filing Deadlines and What a Late Payment Costs

For most individuals, the 2025 T1 return is due April 30, 2026.4Canada Revenue Agency. The Minister of Finance and National Revenue and the Secretary of State (Canada Revenue Agency and Financial Institutions) Mark the Launch of the 2026 Tax-Filing Season Self-employed individuals and their spouses or common-law partners have until June 15, 2026 to file, but any balance owing is still due April 30, 2026.5Canada Revenue Agency. 2026 Tax Deadlines for Canadian Businesses and Self-Employed Individuals The extended filing date does not extend the payment date.

File late with a balance owing and the CRA charges a late-filing penalty of 5 percent of the balance, plus 1 percent for each full month the return is late, up to 12 months. Repeat offenders who were penalized in any of the three preceding tax years and received a demand to file pay 10 percent of the balance plus 2 percent per month for up to 20 months.6Canada Revenue Agency. Interest and Penalties on Late Taxes – Personal Income Tax

Compound daily interest also runs on any unpaid balance. The prescribed rate on overdue taxes for the first three quarters of 2026 is 7 percent, with interest starting May 1, 2026 for most filers.7Canada Revenue Agency. Interest Rates for the First Calendar Quarter If you can’t pay the full amount by the deadline, filing on time still avoids the late-filing penalty and leaves you with interest alone.