We present version 2 of QuTiP, the Quantum Toolbox in Python. Compared to the preceding version [J.R. Johansson, P.D. Nation, F. Nori, Comput. Phys. Commun. 183 (2012) 1760.], we have introduced numerous new features, enhanced performance, and made changes in the Application Programming Interface (API) for improved functionality and consistency within the package, as well as increased compatibility with existing conventions used in other scientific software packages for Python. The most significant new features include efficient solvers for arbitrary time-dependent Hamiltonians and collapse operators, support for the Floquet formalism, and new solvers for Bloch–Redfield and Floquet–Markov master equations. Here we introduce these new features, demonstrate their use, and give a summary of the important backward-incompatible API changes introduced in this version. Program SummaryProgram title: QuTiP: The Quantum Toolbox in PythonCatalog identifier: AEMB_v2_0Program summary URL:http://cpc.cs.qub.ac.uk/summaries/AEMB_v2_0.htmlProgram obtainable from: CPC Program Library, Queen’s University, Belfast, N. IrelandLicensing provisions: GNU General Public License, version 3No. of lines in distributed program, including test data, etc.: 33625No. of bytes in distributed program, including test data, etc.: 410064Distribution format: tar.gzProgramming language: Python.Computer: i386, x86-64.Operating system: Linux, Mac OSX.RAM: 2+ GigabytesClassification: 7.External routines: NumPy, SciPy, Matplotlib, CythonCatalog identifier of previous version: AEMB_v1_0Journal reference of previous version: Comput. Phys. Comm. 183 (2012) 1760Does the new version supercede the previous version?: YesNature of problem: Dynamics of open quantum systemsSolution method: Numerical solutions to Lindblad, Floquet–Markov, and Bloch–Redfield master equations, as well as the Monte Carlo wave function method.Reasons for new version: Compared to the preceding version we have introduced numerous new features, enhanced performance, and made changes in the Application Programming Interface (API) for improved functionality and consistency within the package, as well as increased compatibility with existing conventions used in other scientific software packages for Python. The most significant new features include efficient solvers for arbitrary time-dependent Hamiltonians and collapse operators, support for the Floquet formalism, and new solvers for Bloch–Redfield and Floquet–Markov master equations.Restrictions: Problems must meet the criteria for using the master equation in Lindblad, Floquet–Markov, or Bloch–Redfield form.Running time: A few seconds up to several tens of hours, depending on size of the underlying Hilbert space.