Tax Instalments

  Tax instalments are payments you make throughout the year to cover the taxes you normally pay in one lump sum on April 30 of the following year. You pay these instalments during the year while you are earning the income, similar to how an employer deducts tax directly from each pay period.

  You may have to pay tax by instalments if your income does not have enough tax withheld or if you are self-employed, have rental or investment income, certain pension payments, or have income from more than one job.

Quebec residents must have owed more than $1800 in tax in two of the last three years before instalments are required.

The CRA and Revenu Québec send out instalment reminders twice a year. The February reminder covers March and June instalments, and the August reminder covers September and December instalments.

These payments are treated as refundable tax credits for the year in which they are made, just like source deductions.