Tax Instalments Calculator (Canada)

What the tax instalments calculator does

Enter your prior-year net tax owing and your province, and the calculator tells you whether instalments are required, how much each quarterly payment is and the annual total under the prior-year option. Instalments often catch out people who move from employment, where tax comes off every paycheque, to income that arrives without tax deducted.

Why instalments exist

Employees have tax withheld at source. People whose income is not taxed at source, such as many self-employed workers, retirees and investors, would otherwise pay nothing until they file, so instalments spread their expected tax over four payments. They are required when net tax owing exceeds the threshold in the current year and in one of the two previous years: $3,000 in most of the country and $1,800 in Quebec, where much of the tax is collected provincially.

How the calculation works

• It compares your prior-year net tax with the threshold for your province.
• At or below the threshold, no instalments are required.
• Above it, your prior-year net tax is divided into four equal payments.
• It reports each quarterly amount and the annual total.

Worked examples

With $8,000 of prior-year net tax in Ontario, well above $3,000, instalments are required: $2,000 on each of March 15, June 15, September 15 and December 15, $8,000 in total. A self-employed worker in British Columbia with the same figure gets the same result, because every jurisdiction outside Quebec shares the $3,000 threshold.

With $2,000 of prior-year net tax, a Quebec resident owes instalments because the threshold is $1,800, while an Ontario resident owes none. A figure of exactly $3,000 outside Quebec does not trigger instalments, since the test is more than $3,000.

The three methods

The CRA accepts the no-calculation option based on the reminders it sends, the prior-year option, and the current-year option based on your own estimate. This calculator uses the prior-year option. Paid on time, it means no instalment interest even if your income rises this year. The current-year option can be cheaper when income is falling but brings interest if your estimate is too low.

Quebec and the rest of Canada

Outside Quebec, the CRA collects federal and provincial tax together, so one threshold and one set of four payments covers the whole bill, including in the territories. Quebec residents may also owe separate Quebec instalments to Revenu Québec on top of federal instalments to the CRA. The calculator models only the federal side, so check the Quebec requirement separately.

Reading a CRA instalment reminder

If the CRA expects instalments, it mails reminders, usually in February and August, with suggested amounts under the no-calculation option. They are not bills you must match; you can pay the prior-year amount from this calculator instead, or a current-year estimate if your income is falling. Quebec residents get a parallel notice from Revenu Québec. Pay through CRA My Account or your financial institution before each due date.

Common mistakes and instalment interest

• Treating instalments as optional. Late or short payments bring instalment interest compounded daily, and large amounts can add a penalty.
• Missing a change in circumstances. Retiring or starting self-employment can push you over the threshold for the first time.
• Forgetting that the prior-year option protects you even if this year’s income jumps.

Setting each quarterly amount aside in a separate account as it accrues avoids a cash squeeze on due dates. Recalculate each year once your return is assessed.

This is general information only and not financial advice.

About This Tool: Tax Instalments Canada

Tax instalments Canada: use this tool to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.