Unlike employees who have tax withheld from every paycheque, self-employed Canadians are often required to pay tax in installments throughout the year. Missing these can mean interest charges.
Do You Need to Pay Installments?
Generally, if you owed more than $3,000 in net tax in the current year and either of the two previous years, the CRA expects quarterly installments.
How Much to Pay
The CRA offers three calculation methods — no-calculation, prior-year, and current-year — and will send you a suggested amount based on your history.
We help self-employed clients estimate and plan for these payments so a large bill in April never comes as a surprise.