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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 Quebec instalments for individuals are due on or before each payment due
date.
(3) Individuals resident outside Quebec 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 Quebec abatement, provincial taxes excluding Quebec’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/Quebec 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 Quebec generally have to pay quarterly Quebec tax instalments
when the difference between Quebec taxes payable and Quebec 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 Quebec will be required to use the applicable
federal or Quebec 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
Quebec
$1,800
4
Mar.15
Jun.15
Sept.15
Dec.15
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