Tax Instalments in Canada: Personal and Corporate Thresholds and Dates
corporate and personal instalment thresholds and due dates
Individuals must pay personal tax instalments where net tax owing exceeds $3,000 — $1,800 for Quebec residents — in the current year and in either of the two preceding years, due March 15, June 15, September 15 and December 15. Corporations owing more than $3,000 of total tax pay monthly, or quarterly if they are eligible small CCPCs.
Who pays personal tax instalments?
An individual whose net tax owing exceeds $3,000 in the current year and in either of the two preceding years. Quebec residents cross the threshold at $1,800 rather than $3,000, which pulls materially more Quebec clients into instalment status.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| Personal tax instalments | Individuals whose net tax owing exceeds $3,000 — $1,800 for Quebec residents — in the current year and in either of the two preceding years. | Instalments are due March 15, June 15, September 15 and December 15, with the next business day applying on weekends and holidays. | Not applicable | Instalment interest compounds daily at the prescribed rate on late or deficient instalments. An additional instalment penalty applies where instalment interest exceeds $1,000. |
Who pays corporate instalments?
Corporations with total tax payable over $3,000 in the current or previous year, monthly on the last day of each month. Eligible small CCPCs — claiming the small business deduction, with a perfect compliance history and within the taxable-income and taxable-capital limits — may pay quarterly instead.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| Corporate tax instalments | Corporations whose total tax payable exceeds $3,000 in the current or previous year. | Monthly instalments are due the last day of each month. Eligible small CCPCs — claiming the small business deduction, with a perfect compliance history and within the taxable-income and taxable-capital limits — may instead pay quarterly, on the last day of each quarter of the tax year. | Not applicable | Instalment interest applies, with an additional penalty where instalment interest exceeds $1,000. |
GST/HST instalments for annual filers
Annual GST/HST filers with $3,000 or more of net tax generally pay quarterly instalments through the year and settle the balance on filing. It is a third instalment stream that firms frequently forget exists.
What happens if an instalment is late or short?
Instalment interest compounds daily at the prescribed rate on the deficient amount. An additional instalment penalty applies where instalment interest for the year exceeds $1,000.
Frequently asked questions
Who has to pay personal tax instalments?
An individual whose net tax owing is more than $3,000 in the current year and in either of the two preceding years. Quebec residents use a lower $1,800 threshold, which means a larger share of Quebec clients are instalment payers than elsewhere in Canada.
When are personal instalments due?
March 15, June 15, September 15 and December 15. Where a date falls on a weekend or public holiday, the next business day is treated as on time. The March 15 instalment arrives before most clients are thinking about tax season at all.
When are corporate instalments due?
Monthly, on the last day of each month, for corporations with total tax payable over $3,000. Eligible small Canadian-controlled private corporations with a perfect compliance history may pay quarterly instead, on the last day of each quarter of their tax year.
What is the penalty for missing an instalment?
The CRA charges instalment interest, compounded daily at the prescribed rate, on late or deficient instalments. Where instalment interest for the year exceeds $1,000, an additional instalment penalty applies on top of the interest.
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