You may need to pay tax by instalments if your net tax owing is more than $3,000 in the current year and in either of the two previous years ($1,800 in Quebec). Individuals pay on March 15, June 15, September 15 and December 15. The CRA mails instalment reminders with suggested amounts, and paying those amounts on time means no instalment interest.
Who has to pay instalments?
Instalments spread your tax over the year when not enough is taken off at source. You have to pay them if your net tax owing is more than $3,000 in the current year and in either of the two previous years ($1,800 if you live in Quebec). This often applies to self-employed people, landlords, investors and retirees whose pensions have little tax withheld.
When they're due
Individuals pay four instalments a year: March 15, June 15, September 15 and December 15. When a due date falls on a weekend or public holiday, the payment is on time if it's received the next business day. Corporations follow different rules, usually paying monthly or quarterly.
How much to pay
There are three ways to work out the amount:
- Reminder option: pay the amounts on the instalment reminders the CRA mails in February and August. If you pay them in full and on time, you won't be charged instalment interest, even if you owe more at tax time.
- Prior-year option: base your payments on last year's net tax owing.
- Current-year option: estimate this year's tax. This can mean smaller payments, but if you underestimate, interest applies.
Late or missed instalments
The CRA charges instalment interest on late or short payments, and a penalty can also apply when that interest is large. You can reduce or cancel the interest by paying your next instalments early or paying more than required. You can pay through your bank, CRA My Account or the CRA's My Payment service.
Questions about this guide
Do I have to pay if I got an instalment reminder?
A reminder means you may need to. If you're confident you'll owe $3,000 or less for this year, you don't have to pay, but if you're wrong, instalment interest can apply. We can estimate it with you.
What if I missed an instalment?
Pay it as soon as you can. Interest is charged from the due date, and paying your next instalments early or paying extra can reduce or cancel it.
This guide is general information for the 2026 tax year, not advice for your situation. For help with your own taxes, book a time with TaxCorner.