Calculate Your Required Tax Instalments & Avoid CRA Interest Charges
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Enter Your Tax Information
Total federal and provincial tax minus source deductions
Net tax from last year's return (Line 435/437)
Net tax from two years ago (for prior-year option)
CRA requires instalments if you owe more than $3,000 ($3,000 for QC) for current year AND either of the two prior years
Your Tax Instalment Requirements
Instalment Requirement Status
Quarterly Instalment Amount
Total Annual Instalments Required
Estimated Balance Due at Filing
Instalment Payment Schedule
Due Date
Instalment Amount
Cumulative Total
Calculation Method Used
Disclaimer
This tool provides estimates for informational purposes only and does not constitute professional accounting, tax, or financial advice. Results may not reflect your specific situation. Tax laws and regulations change frequently. Always consult a qualified CPA before making financial decisions. Insight Accounting CPA Professional Corporation accepts no liability for decisions made based on these estimates. For personalized advice, call (905) 270-1873.
Frequently Asked Questions
Who needs to pay tax instalments in Canada?
You must pay tax instalments if your net tax owing (after deducting source deductions and credits) exceeds $3,000 ($1,800 in Quebec) for the current year AND for one of the two preceding years. This typically applies to self-employed individuals, landlords, investors, and business owners in Mississauga, Toronto, and across Ontario. Our CPA services can help you determine your exact requirements and avoid costly CRA interest charges.
When are tax instalments due in Ontario?
For individuals and self-employed taxpayers in Ontario, tax instalments are due quarterly: March 15, June 15, September 15, and December 15. For corporations, instalments are typically due monthly or quarterly depending on your taxable income. Missing these deadlines can result in CRA interest charges dating back to the due date. Our tax planning services in the GTA help ensure you never miss a deadline.
What are the three instalment calculation methods?
The CRA allows three methods: (1) Current-year option - 25% of estimated current-year tax each quarter; (2) Prior-year option - 25% of last year's tax each quarter; (3) Prior-year option with prior-prior adjustment - first two instalments based on tax from two years ago, last two based on prior year. The CRA will automatically use whichever method results in the lowest instalment requirement. Our Mississauga bookkeeping team can calculate this for you.
What happens if I don't pay tax instalments?
If you fail to pay required tax instalments on time, the CRA charges instalment interest calculated daily from the due date. The prescribed interest rate changes quarterly and compounds daily. You may also face instalment penalties if interest owing exceeds $1,000. For businesses in Toronto and the GTA, these charges can add up quickly. Our corporate tax planning services help you avoid these penalties entirely.
Can I reduce my tax instalments mid-year?
Yes, if your income decreases or your tax situation changes mid-year in Ontario, you can reduce future instalments based on your revised estimates. However, if you underestimate, you'll owe instalment interest. It's critical to recalculate carefully. Our CPAs serving Mississauga, Toronto, and Ontario provide ongoing tax advisory to help you adjust instalments safely and minimize your tax liability throughout the year.
Need Help with Tax Instalments?
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