Instalment payments
Instalment payments
Most individuals pay their income tax throughout the year through source deductions (amounts withheld from their income). However, if you have income from which tax is not withheld or not enough tax is withheld, you may be required to pay your income tax in instalments.
What are instalment payments?
Instalment payments are payments you make throughout the year to cover income tax for the current year, contributions to the Québec Pension Plan and the health services fund, and premiums payable under the Québec parental insurance plan and the Québec prescription drug insurance plan.
Who has to make them?
You will have to make instalment payments for the 2025 taxation year if you estimate that your net income tax payable for the year will be over $1,800 and your net income tax payable for 2024 or 2023 was over $1,800.
Your net income tax payable is your income tax payable for the year minus the total, for the same year, of the income tax withheld at source and your refundable tax credits. In calculating your net income tax payable, do not take into account:
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the QST rebate for employees and partners;
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the property tax refund for forest producers;
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the grant for seniors to offset a municipal tax increase;
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retirement income transferred from one spouse to the other that you included in or deducted from your income (line 123 or 245 of the return); or
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the transfer of income tax withheld from retirement income (line 451.1 or 451.3 of the return, as applicable).
When are they due?
Instalment payments must be made four times a year, by March 15, June 15, September 15 and December 15.
How are they calculated?
If your net income tax payable for 2023 was more than $1,800, we will send you form TPZ-1026.A-V, Instalment Payments Made by an Individual, in February and August to inform you of the payments you will be required to make if you expect your net income tax payable for 2025 to also exceed $1,800. We will use your 2023 income tax return to calculate your first two instalments for 2025 and your 2024 income tax return to calculate your last two instalments for 2025.
If your net income tax payable was $1,800 or less for 2023 but is more than $1,800 for 2024, we will send you form TPZ-1026.A-V in August to inform you of the payments you will be required to make for September and December 2025 if you expect your net income tax payable for 2025 to also exceed $1,800. We will use your 2024 income tax return to calculate both instalments.
If you do not receive form TPZ-1026.A-V, you must determine whether you have to make instalment payments by completing form TP-1026-V, Calculation of Instalment Payments to Be Made by Individuals, or contacting us.
If you received form TPZ-1026.A-V but would rather calculate your instalment payments yourself, use form TP-1026-V.
If you have to make instalment payments for 2025, we will charge interest, compounded daily, on every instalment (or portion thereof) that is not paid by the due date. For more information, see brochure IN-105-V, Instalment Payments of Income Tax.
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