CRA Tax Instalment Payments: Who Pays and When

You have to pay CRA income tax instalments for 2026 if your net tax owing is more than $3,000 (or $1,800 in Quebec) and you owed more than that in either 2025 or 2024. Instalments are due on March 15, June 15, September 15 and December 15, and the CRA charges interest on late or insufficient payments at the prescribed rate, compounded daily.

Tax instalments are payments you make during the year to cover tax that you would otherwise pay in one lump sum on April 30 of the following year. They exist because some income does not have enough tax withheld at source: self-employment income, rental and investment income, certain pension payments, and income from more than one job are common reasons. Paying by instalments spreads the cost and helps you avoid interest and penalties.

Who has to pay

The Canada Revenue Agency says you may have to pay tax instalments if your net tax owing is more than $3,000, or $1,800 if you live in Quebec. The test uses two years: you have to pay instalments for 2026 if your net tax owing is more than the threshold for 2026 and was more than the threshold in either 2025 or 2024. The province or territory where you live on December 31 determines your net tax owing for the purpose of the instalment rules.

The four due dates

Most individuals who have to pay instalments make four payments a year, due on March 15, June 15, September 15 and December 15. Farmers and fishers have a single due date of December 31 instead of the four quarterly dates. The CRA sends instalment reminders, form INNS1, twice a year: the February reminder covers the March and June payments, and the August reminder covers the September and December payments. The reminder suggests an amount and lists the calculation options, including the no-calculation option, the prior-year option and the current-year option.

Interest and penalties

If you do not pay, pay late or pay less than you had to, the CRA charges instalment interest. Instalment interest is compounded daily at the prescribed interest rate, which can change every three months. For the third calendar quarter of 2026, from July 1 to September 30, 2026, the rate charged on overdue taxes, Canada Pension Plan contributions and employment insurance premiums is 7 percent. You may also have to pay a penalty, but the CRA applies it only if your instalment interest charges for 2026 are more than $1,000. Calculating your instalments carefully, or asking the CRA to calculate them for you, is the simplest way to avoid these charges.