✏️ Your Tax Information
From your most recent Notice of Assessment
Total federal + BC tax minus credits & withholdings
Self-employed? Include your CPP contributions in this total.
Calculation Method
Quarterly Instalment Amount
$0
4 payments per year
Method
📅 Quarterly Payment Schedule
| Due Date | Amount |
|---|
📊 Annual Breakdown
⚖️ Method Comparison
See what each method would require — choose the one that results in the lowest instalments without underpaying.
Frequently Asked Questions
Who must pay tax instalments? +
CRA requires quarterly instalment payments if your net tax owing exceeds $3,000 (federal + provincial combined) in the current year and in either of the two preceding years. For Quebec residents the threshold is $1,800, but BC residents use $3,000.
"Net tax owing" means your total income tax payable minus any tax already withheld at source by an employer, pension administrator, or other payer.
"Net tax owing" means your total income tax payable minus any tax already withheld at source by an employer, pension administrator, or other payer.
- Employees whose full tax is withheld from each paycheque typically do not owe instalments.
- Self-employed individuals, investors, and retirees with large pension income usually do.
- If you have multiple income streams (employment + side business), calculate combined withholding carefully.
When are the instalment due dates? +
CRA requires four equal payments per tax year, all by 11:59 PM local time on each due date:
- March 15 — Q1
- June 15 — Q2
- September 15 — Q3
- December 15 — Q4
What are the three calculation methods? +
CRA allows three options — you may use whichever produces the lowest instalment without incurring interest:
- No-Calculation: CRA calculates your payments for you, based on your most recent assessed return, and tells you the amount on your instalment reminder. Best if your income is stable year to year.
- Prior Year: You calculate payments yourself using your most recent NOA. Best if this year looks similar to last year. Same underlying figure as No-Calc, but you do the math.
- Current Year Estimate: You base payments on your best estimate of this year's net tax owing. Best if your income has changed significantly from last year. Underpaying triggers interest and possibly a penalty.
Tip: If your income dropped significantly this year, the Current Year method will give the lowest payment. If income rose, use No-Calc or Prior Year to avoid a large final-balance surprise.
How do I pay CRA instalments? +
You can pay using any of the following:
- My Account / My Business Account — CRA's online portal (fastest).
- Online banking — Add "CRA (Revenue Canada) – 2025 TAX INSTALMENT" as a payee. Use your SIN as the account number.
- Pre-authorized debit — Set up recurring payments through My Account.
- In person — At any Canadian financial institution with your CRA remittance voucher (Form INNS3).
- Mail — Cheque payable to "Receiver General for Canada" with your SIN and "2025 INSTALMENT" in the memo.
Note: CRA no longer mails remittance vouchers automatically — download them from My Account or call 1-800-959-8281.
What happens if I miss a payment or underpay? +
CRA charges compound daily interest at the current prescribed rate (typically the Bank of Canada rate + 4%) on any shortfall from the due date until paid.
An instalment penalty also applies if instalment interest exceeds $1,000 and your interest charges exceed 25% of the interest you would have paid had you made no instalments at all. The penalty is 50% of the excess interest over $1,000.
Good news: CRA offsets your instalment interest with any credit earned by overpaying earlier quarters, so paying extra in Q1 can shelter a shortfall in Q2.
An instalment penalty also applies if instalment interest exceeds $1,000 and your interest charges exceed 25% of the interest you would have paid had you made no instalments at all. The penalty is 50% of the excess interest over $1,000.
Good news: CRA offsets your instalment interest with any credit earned by overpaying earlier quarters, so paying extra in Q1 can shelter a shortfall in Q2.
What counts as "net tax owing" in BC? +
Net tax owing is the sum of your federal income tax and BC provincial income tax for the year, minus all income tax withheld at source (T4 Box 22, T4A Box 22, etc.).
For self-employed individuals, your CPP contributions (both employee and employer portions — 11.9% combined) are also part of your T1 balance owing and should be included in your instalment base. Your NOA "balance owing" already reflects this.
GST/HST remittances and EI premiums are not included — those have separate remittance schedules.
For self-employed individuals, your CPP contributions (both employee and employer portions — 11.9% combined) are also part of your T1 balance owing and should be included in your instalment base. Your NOA "balance owing" already reflects this.
GST/HST remittances and EI premiums are not included — those have separate remittance schedules.
Find your net tax owing on your Notice of Assessment (balance owing line). For a current-year estimate, add your projected income tax + CPP contributions, then subtract any withholdings.
Can I overpay to avoid interest? +
Yes, and it's a common strategy. CRA applies instalment credit interest on overpayments, which offsets any interest charged on underpaid quarters. The credit rate is the same as the debit rate (prescribed rate), so there is no net loss — but you also receive no refund of the offset interest itself.
Any net overpayment of instalments will be applied against your balance owing when you file, or refunded after your return is assessed. CRA does not pay refund interest on instalment overpayments until April 30 of the following year.
Any net overpayment of instalments will be applied against your balance owing when you file, or refunded after your return is assessed. CRA does not pay refund interest on instalment overpayments until April 30 of the following year.
