Personal Taxation Q 'n A

Do I need to make tax installments?

If you owe income tax in the year just filed and either of the two preceding years over $3,000, you will be required to make installments for the current year in the amount of the preceding year’s taxes owing or an estimated amount. CRA sends out notices to individuals based on this formula. Failure to remit the installments will result in interest being charged on amounts owing up to the preceding year’s taxes