Who has to pay
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.
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Factors to consider
There are two factors to help determine if you have to pay tax instalments:
Province or territory where you live
The province or territory where you live on December 31 determines your net tax owing for tax instalments.
All residents (except Quebec): Option 1 of 2
If your net tax owing is more than $3,000.
Quebec residents: Option 2 of 2
If your net tax owing is more than $1,800.
Net tax owing
Use the calculation chart for instalment payments for 2023 (PDF) to determine your estimated net tax owing and the total instalment amount you owe.
You have to pay your income tax by instalments for 2023 if both apply:
Net tax owing in 2023
If your net tax owing is more than $3,000, or $1,800 for Quebec.
Net tax owing in 2022 or 2021
If your net tax owing in either 2022 or 2021 is also more than $3,000, or $1,800 for Quebec.
If your main source of income in 2023 is from farming or fishing, you may also have to make instalment payments.
Receiving an instalment reminder
The CRA sends instalment reminders to people who will likely have to pay tax instalments. The reminders suggest the amount to pay and lists the calculation options.
There are two instalment reminders (form INNS1) sent:
- February reminder is for the March and June payments
- August reminder is for the September and December payments
You can view your instalment reminders online using My Account.
If you received an instalment reminder in 2023, but your 2023 net tax owing is $3,000 or less ($1,800 or less for Quebec), you do not have to pay tax instalments for 2023.
If you received an August reminder only
You can decide to reduce or stop your instalment payments for 2023 if one of the following applies:
- Instalments already paid this year will cover your estimated 2023 net tax owing
- Your 2023 net tax owing will be $3,000 or less ($1,800 or less for Quebec)
If your August reminder does not mention a March or June 2023 instalment payment, select the option that applies to you:
- No-calculation option – Pay the amount in box 2 of your reminder for September 15 and December 15.
- Prior-year option – Calculate your 2022 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.
- Current-year option – Estimate your 2023 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.
If you received an instalment reminder and are required to pay instalments, but you do not pay, you may have instalment interest and penalty charges.
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