Instalments

Question 1

Instalment threshold for individuals

Answer 1

$3,000 ($1,800 Quebec)

Question 2

When are instalments required for individuals?

Answer 2

If the tax owing (on income not subject to withholding) in the current year and in one of the two preceding years exceeds the threshold of $3,000 ($1,800 Quebec)

Question 3

Calculations for Instalments

Answer 3

Each instalment is computed as the least of:

• 1/4 of the estimated tax payable for the current year;
• 1/4 of tax payable for the immediately preceding year;
• 1/4 of tax payable for the second preceding year for the March and June instalments, and 1/2 of [the tax payable for the preceding tax year net of the March and June payments] for the Sept. and Dec. instalments