Monthly instalment payments
You can calculate your monthly instalment payments using one of the following options:
Option 1 – One-twelfth (1/12) of the estimated tax payable for the current tax year is due each month of the tax year.
Option 2 – One-twelfth (1/12) of the tax payable from the previous tax year is due each month of the current tax year.
Option 3 – One-twelfth (1/12) of the tax payable from the year before the previous tax year is due in each of the first two months of the current tax year. One-tenth (1/10) of the difference between the tax for the previous tax year and total of the first 2 payments is due in each of the remaining 10 months of the current tax year.
We will assess your return using the option that results in the least amount payable by instalments.
We will charge interest if you use option 1 and your estimated tax was lower than the year's actual tax and the tax calculated using option 2 or 3.
We provide two worksheets to help you calculate your estimated tax payable and tax credits, as well as your monthly instalment payments:
- Worksheet 1 – Calculating estimated tax payable and tax credits for 2023
- Worksheet 2 – Calculating monthly instalment payments for 2023
For more information and examples of calculation, see Worksheets.
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