Tax by Instalments

You might have to pay taxes in instalments on the following income if taxes weren’t withheld (or the required tax amount wasn’t withheld) from the payments:

  • Self-employment income (including fishing or farming)
  • Rental property income
  • Certain pension payments
  • Investment income or
  • Income from more than one job

In other words, instead of paying the tax you owe all at once on or before April 30th, paying tax in instalments means you’ll pay the tax owed in smaller, lump sum amounts, over the entire year.

Your province or territory of residence and the net taxes that you owe on December 31, determine if you have to pay tax instalments. If the taxes you owe are more than the amounts in the table below, you must pay tax in instalments.

 Province/territory of residence

 Taxes owed on December 31

 All provinces except Québec

 > $3,000

 Québec

 > $1,800

 

Note: If you’re a farmer or a fisher, you can find more information on paying taxes by instalments on the Canada Revenue Agency (CRA) website.

Tax instalment payments are made on a regular basis, directly to the CRA or Revenu Québec and are due on:

  • March 15
  • June 15
  • September 15
  • December 15

Remember, if you don’t make the required payments on time, the CRA and/or Revenu Québec can charge you interest and penalty on the amounts that you owe.

You can see your instalment payment information by accessing the My Account service on the CRA website or the Revenu Québec website

 

Where do I enter this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

  1. Under the PREPARE tab, click the OTHER icon.

  2. On the PAYMENTS page, select the checkbox indicating that you made recurring tax payments in 2016.

    payments_EN.jpg

  3. Enter the total amount of tax paid in instalments to the CRA (and/or to Revenu Québec if you're a resident of Québec) in the designated field.

  4. Scroll to the bottom of the page and click Continue.

Where can I learn more?