If your total tax liability, less the portion that was withheld at source, is greater than $3,000 for both the current year and either of the two preceding years, you must make instalments for the current year. In Québec, where provincial tax is collected by the province, the threshold is $1,800 for both federal and provincial tax.
The Canada Revenue Agency (CRA) determines who is required to pay instalments from prior years' tax returns and mails instalment reminders to these taxpayers. Where required, instalment payments are due quarterly, on the 15th day of March, June, September and December. The CRA sends out the instalment reminders twice a year — in February for the March and June payments, and in August for the September and December payments. These notices are also available in the CRA My Account online service.
If your main source of income is from farming or fishing, and you have an instalment requirement, your instalment will be due on December 31, 2018.
For more information on paying personal tax instalments, read our tax bulletin titled Failure to Pay Tax Instalments Can Be Costly.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of January 22, 2018.