Long overdue increase to tax amount that triggers instalments ($7,500 versus $3,000) 2028 implementation | Income tax filing | Discussion forum

Among them, the government proposes to raise the minimum amount of income tax owing that triggers an obligation to pay tax in quarterly instalments throughout the year rather than at tax time. The threshold would increase from $3,000, where it was set in 2008, to $7,500, a level that would be indexed to inflation going forward. In Quebec, where the CRA only collects federal tax, the threshold would rise from $1,800 to $4,500 for individuals.

The change would spare the need to pay tax in instalment for self-employed Canadians with modest incomes, as well as seniors who receive modest amounts from sources such as RRIFs, Old Age Security and Canada Pension Plan payments, which are not subject to tax withholding. The new thresholds would apply starting in the 2028 tax year.

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