What are the different payment options for the personal tax installments?

There are three instalment payment options:

1. The no-calculation option:

You pay the amount shown on each instalment reminder (sent to you by Canada Revenue Agency) by each due date.

6If you choose the no-calculation option and make the payments shown on the reminders by their due dates, Canada Revenue Agency will not charge any interest or penalties if the instalments are less than the total amount of tax you end up owing at the end of the year. If you pay too much, Canada Revenue Agency will send you a refund.

2. The prior-year option:

You pay one-quarter of your prior year taxes and any CPP payable by each due date.

3. The current-year option:

You pay one-quarter of your estimated current year taxes and any CPP payable by each due date.

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.