Installment Payments – Individuals
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 instalments for next year’s taxes, if your net tax owing is more than $3,000 (for Quebec $1,800) for 2023 and in either 2022 or 2021.
Tax instalment payments are due by the following dates (except farmers and fishers who have one due date on December 31):
- March 15, June 15, September 15 & December 15
When you file your income tax at our office, the installment amounts will be printed on the letter attached to your personal tax return. There will be a total amount of what you have to pay and the dates will be listed of when these amounts are due to CRA.
You will receive reminders throughout the year to pay your installments. If you do not pay these installments, you will be charged interest and or a penalty.
If you pay your required installments throughout the year, you can claim them on your tax return. It is very important to let your account know of any installments you made and how much you paid during the year. Your account will claim these amounts on your tax return.
Paying your installments:
You can pay your installments through online banking, at your bank/credit union with the payment voucher. Or you can mail in a cheque along with the voucher to CRA directly.
The voucher is called the “Installment Remittance Voucher – INNS3″ This voucher will make sure the payment is going to the correct account.
Your remittance voucher is included in your instalment reminder package the CRA mails to you, unless you pay instalments by pre-authorized debit.
For more information, please clink the link below.