--- title: 3 Ways To Calculate Your 2021 Tax Instalments description: If you’re required to pay tax installments, there are three options to figure out how much you owe.. image: https://lh4.googleusercontent.com/eLYNdWIUMXgrJM8K328AOGq6DfVtg_iN1UPd3DSyPEB_6w7fJ8hD3QtJBCg6K2mdnOhuFg00tnT0rYffjnioiltG-zwRISX33KF1sqEuH1PqHxsetrOzaUEob0YjWP9M2nUzP9Uw --- [![Koroll & Company - Newmarket CPAs](https://www.koroll.ca/hs-fs/hubfs/images/Logos/koroll_blue.png?width=247&height=65&name=koroll_blue.png "Koroll & Company - Newmarket CPAs")](https://www.koroll.ca/) [![Certified Professional Accountants Newmarket](https://www.koroll.ca/hs-fs/hubfs/images/Logos/CPALogo_2014_notext_72.png?width=82&name=CPALogo_2014_notext_72.png "Certified Professional Accountants Newmarket")](https://www.cpacanada.ca/) ![AdobeStock_77939924_WM.jpeg](https://www.koroll.ca/hs-fs/hubfs/images/Banners/taxesBannerBlueStrip-1.jpg?width=2000&name=taxesBannerBlueStrip-1.jpg "AdobeStock_77939924_WM.jpeg") # Koroll & Company Blog - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/3-ways-to-calculate-your-2021-tax-instalments#) ## [3 Ways To Calculate Your 2021 Tax Instalments](https://www.koroll.ca/koroll-and-company-blog/3-ways-to-calculate-your-2021-tax-instalments) [fa icon="calendar"] Jun 8, 2021 2:00:00 PM / by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll) - [Tweet](https://twitter.com/share) **![](https://lh4.googleusercontent.com/eLYNdWIUMXgrJM8K328AOGq6DfVtg_iN1UPd3DSyPEB_6w7fJ8hD3QtJBCg6K2mdnOhuFg00tnT0rYffjnioiltG-zwRISX33KF1sqEuH1PqHxsetrOzaUEob0YjWP9M2nUzP9Uw)** Approximately 1.8 million taxpayers are required to [pay tax ](https://www.koroll.ca/tax-services)instalments each year. These instalments are required where a taxpayer owed more than $3,000 in the previous two years (2019 and 2020) and their net owing for 2021 will be more than $3,000.  Instalments are owed on the 15th of March, June, September and December.  If you’re required to pay tax instalments, there are three options to figure out how much you owe.  1. ** No calculation ** The Canada Revenue Agency (CRA) calculates March and June’s instalments based on ¼ of your net owing in 2019. The September and December instalments are based on your 2020 tax owing minus the amounts paid in March and June. 1. ** Prior year ** This option only uses your previous years’ income. So that means your 2021 instalments are based on your 2020 tax owing. Each of your four payments in March, June, September and December will be ¼ (25%) of your 2020 tax owing.  You should choose this option if your 2021 tax position will be similar to your 2020 tax position, but different from your 2019 tax position - i.e. in 2020 you got a promotion that significantly changed your annual salary.  If your income was significantly reduced in 2020 because of the pandemic and it will continue to be affected in 2021, this option may also be the best choice.  1. ** Current year ** The current year method uses your estimated tax owing for 2021. Once you have calculated your expected tax owing for the year, you’ll pay 25% of that amount each quarter.  You should choose this option if your income will be substantially less in 2021 than it was in 2020.  If you remit your required instalment payments on time, there will be no interest or penalties. If you ignore the notice to pay, you will be charged a compounded daily interest rate of 5% on overdue taxes, using the option that results in the least amount of interest.  If you do happen to miss a payment, you may be able to offset interest on late instalments by paying the next one early.  For help determining the best option for your instalment payments in 2021, [contact our team of professionals today](https://www.koroll.ca/contact-us).  [![Book A Free Consultation](https://no-cache.hubspot.com/cta/default/1577306/b06a76bd-288d-4d2f-9a8c-41fd86ee8e2f.png)](http://cta-redirect.hubspot.com/cta/redirect/1577306/b06a76bd-288d-4d2f-9a8c-41fd86ee8e2f) --- The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation. ## About Koroll & Company At Koroll & Company we grow our firm through satisfied clients referring us as a trusted accounting firm to their friends, family members and associates. The only way we know how to achieve this is strive to exceed your expectations and provide you with exceptional service. We have 20+ years servicing Newmarket, ON and the surrounding areas, and look forward to servicing you next. So give us a call and speak to a friendly staff member from Koroll & Company today! Topics: [Tax Tips](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) ![Allen Koroll](https://www.koroll.ca/hubfs/Koroll_and_Co_Staff_Pictures/Allen_Koroll_CGA_Newmaket_Picture.png) #### Written by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll) ### Subscribe to Email Updates - Recent - Popular - Categories ### Lists by Topic - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/3-ways-to-calculate-your-2021-tax-instalments#) ### Posts by Topic - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/3-ways-to-calculate-your-2021-tax-instalments#) ### Recent Posts ### Navigation [![Book a Corporate Consultation ](https://no-cache.hubspot.com/cta/default/1577306/d01d118a-226f-4228-b26d-7c2ce0d13ccf.png)](https://cta-redirect.hubspot.com/cta/redirect/1577306/d01d118a-226f-4228-b26d-7c2ce0d13ccf) ![](https://www.koroll.ca/hs-fs/hubfs/images/Logos/koroll_white.png?width=247&height=65&name=koroll_white.png "koroll_white.png")   We've proudly served Newmarket and the surrounding region for over 20+ years. 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