When do self-employed Canadians need to pay tax by instalment?

You are required to make quarterly income tax instalment payments to the CRA if your net tax owing (after deducting withholdings and credits) exceeds C$3,000 in the current year AND exceeded C$3,000 in either of the previous two tax years. In Quebec, the threshold is C$1,800. The four instalment due dates each year are: - **15 March** - **15 June** - **15 September** - **15 December** The CRA offers three methods to calculate instalment amounts: 1. **Prior year method**: Base on last year's tax owing (CRA sends you a reminder) 2. **Current year method**: Estimate your current year tax and pay quarterly 3. **No-calculation method**: Pay the amounts shown on CRA instalment reminders If you don't pay enough instalments, you'll owe instalment interest and possibly a penalty. However, if your actual tax for the year turns out to be less than expected, any overpayment is refunded when you file. Self-employed individuals also owe CPP contributions in their year-end balance, so CPP payments are factored into whether you need instalments.

• Required if tax owing exceeds C$3,000 (C$1,800 in Quebec) in current + prior years
• Four payment dates: March 15, June 15, September 15, December 15
• Three calculation methods: prior year, current year, or CRA reminders
• Instalment interest charged if insufficient amounts paid
• CPP contributions also factor into the instalment threshold calculation