Who has to pay tax by instalments?

Answer a few questions to find out if you have to pay your income tax by instalments.

To find out how to reduce or eliminate the amount of the instalment payments you have to pay, see Do you want to reduce or eliminate the amount of instalment payments you have to make?

You have to pay your income tax by instalments for 2012 if your net tax owing (see the definition below) is more than $3,000:

• in 2012; and
• in either 2011 or 2010.

Quebec resident - If you live in Quebec on December 31 of a year, use a limit of $1,800 instead of $3,000 for that year.

Farmers and Fishers - Different rules apply if your main source of income in 2012 is self-employment income from farming or fishing. For more information, see Farming and fishing.

Net tax owing - In general, this is the amount you owe on your income tax and benefit return. The items used to calculate net tax owing are listed in the Calculation chart for instalment payments.

Forms and publications

• Pamphlet P110, Paying Your Income Tax by Instalments