Instalment Requirements  /  49

Notes, continued

For federal purposes, a penalty may also apply to individuals who are required to pay 

instalment interest in excess of $1,000 (see the table “Selected Federal Penalty and 

Offence Provisions” for details). For Québec purposes, an additional interest charge of 10% 

may apply (see the table “Selected Provincial Penalty Provisions”).

In February and August each year, the CRA and Revenu Québec send instalment reminder 

notices to individuals advising them of their quarterly instalment obligations. The February 

notice indicates the amounts to pay for the March 15 and June 15 instalments, while the 

August notice indicates the September 15 and December 15 instalment amounts. The 

instalment amounts reflected in these reminder notices are generally calculated based on 

the individual’s second preceding year payment method (see note (5)). 

Individuals may choose to pay instalments based on the CRA’s or Revenu Québec’s 

instalment reminder notices, or they may calculate them using one of the other methods 

discussed in note (5).

Self-employed individuals must also include CPP/QPP contributions in these instalment 

calculations.

The final balance of federal and provincial tax owing for all individuals is due on or before 

April 30 of the following year.

(7) For federal purposes, farmers and fishers are required to make one instalment payment 

by December 31 if their net tax owing is more than $3,000 in the current year and in each 

of the two preceding years. Farmers and fishers resident in Québec are required to make 

one instalment payment by December 31 if their net tax owing is more than $1,800 in the 

current year and in each of the two preceding years.

Instalment reminder notices reflecting the amount that has to be paid by the December 31 

due date are sent each year in November.

Instalment requirements can be calculated by one of two instalment payment options:

• Current year estimate—two-thirds of the current year’s estimated net tax owing

• Prior year method—two-thirds of the preceding year’s net tax owing.

The final balance of federal and provincial tax owing is due on or before April 30 of the 

following year.

  Tax Instalment Choices

 Amount Of Quarterly Payment

Current year estimate

¼ on each quarterly due date

5,6

Prior year method

¼ on each quarterly due date

5,6

Second preceding year method

Q1 and Q2 based on second preceding year, 

and Q3 and Q4 based on prior year

5,6

Tax authority reminder notices

As stipulated in Canada Revenue Agency or 

Revenu Québec notices

7

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Current as of September 30, 2013