Methods and devices for perceptual image and video coding. A method for reconstructing a quantization parameter for a current block includes predicting the quantization parameter, wherein predicting the quantization parameter is based upon a previous quantization parameter used for a neighboring block in the image, an estimated AC energy of the neighboring block, and an estimated AC energy of the current block; decoding from the bitstream a quantization parameter residual; and deriving the quantization parameter from the predicted quantization parameter and the quantization parameter residual. The method may include reconstructing the pixels of the current block, including dequantizing decoded quantized transform domain coefficients based on the quantization parameter.