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Instalment Requirements

1

Notes

(1) This table applies to all individuals, except farmers and fishers. Specific rules that apply to 

farmers and fishers are discussed in note (8).

(2) Federal and Québec instalments for individuals are due on or before each payment due 

date.

(3) Individuals resident outside Québec at the end of a taxation year are required to pay 

quarterly tax instalments during the year if their net tax owing is more than $3,000 in the 

current year or in either of the two preceding years.

Net tax owing generally includes federal taxes (net of applicable tax credits) that become 

payable on or before the individual’s balance-due day for the year, the Old Age Security 

clawback tax, the Québec abatement, provincial taxes excluding Québec’s (net of provincial 

credits), and investment tax credits. These amounts are reduced by the total taxes withheld 

at source to arrive at net tax owing. Net tax owing does not take into account losses 

carried back to previous years, Canada/Québec Pension Plan (CPP/QPP) or Employment 

Insurance overpayments, employee and partner GST rebates, Child Tax Benefit payments 

or GST credits. Self-employed individuals must also include CPP/QPP contributions in their 

instalment payments.

(4) Individuals resident in Québec generally have to pay quarterly Québec tax instalments 

when the difference between Québec taxes payable and Québec taxes deducted at source 

is more than $1,800 for the current year or in either of the two preceding years.

Individuals who have moved into or out of Québec will be required to use the applicable 

federal or Québec instalment threshold and formula for each relevant year to determine 

whether they are required to make instalment payments.

(5) Quarterly instalment requirements can be calculated by one of three instalment payment 

options, or by following the reminder notices sent by the tax authorities (see note (6)). The 

three instalment payment options are:

• Current year estimate—one-quarter of the current year’s estimated net tax owing

• Prior year method—one-quarter of the preceding year’s net tax owing

• Second preceding year method—For each of the first two instalments, one-quarter of

the second preceding year’s net tax owing and for the last two instalments, one-half of 

the difference between the preceding year’s net tax owing and the total of the first two 

instalments made. 

(6) Instalment interest will be charged if individuals who are required to pay instalments make 

late or deficient payments. However, if individuals make instalment payments based on 

the Canada Revenue Agency (CRA) or Revenu Québec notices, they will not be subject to 

interest charges or penalties, even if these payments fall short of their total tax liability.

Instalment interest is compounded daily using the applicable prescribed interest rate (see 

the table “Prescribed Interest Rates”) and is determined using the instalment method that 

calculates the least amount of interest. Individuals can reduce or eliminate interest charges 

on deficient tax instalments by overpaying other instalments or paying other instalments 

before their due date. This interest offset can reduce a potential interest liability but cannot 

be used to earn interest.

Tax Owing

Thresholds

Payment Due Dates

2

 

Federal 

$3,000

3

Mar.15

Jun.15

Sept.15

Dec.15

Québec 

$1,800

4

Mar.15

Jun.15

Sept.15

Dec.15

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of September 30, 2013