CRA quarterly tax instalments: how the payment schedule works

CRA quarterly tax instalments are advance payments due four times a year, on March 15, June 15, September 15 and December 15.

By Promissory.ca Editorial Team Reviewed against official Canadian sources Last updated: 2026-09-16

What are CRA quarterly tax instalments?

Most employees have income tax withheld from each paycheque. When you earn income that does not have tax withheld at source, such as self-employment income, rental income or investment income, you may owe a lump sum when you file your return. The Canada Revenue Agency, or CRA, asks some taxpayers to pay that tax in advance through quarterly instalments instead of one large payment in the spring.

An instalment is a partial prepayment of the tax the CRA expects you to owe for the year. Paying on time keeps you from facing a large balance owing all at once, and it helps you avoid the interest that builds up on unpaid tax. If you pay too little, the CRA can charge instalment interest and, in some cases, a penalty.

This guide explains how the quarterly schedule works, who it applies to, and the options you can use to work out your payments. It is general information only, not tax advice. Confirm your own situation with the CRA or a qualified tax professional.

Who has to pay instalments?

You may have to pay instalments if your net tax owing is more than $3,000 for 2026 and in either 2025 or 2024. For residents of Quebec, the threshold is $1,800. These figures come from the CRA and are based on your net tax owing, which is the total tax you owe after tax already withheld and most non-refundable credits are applied.

Net tax owing is not the same as your total income or your taxable income. It is the amount left to pay once withholding and credits are subtracted. Two people with similar incomes can land on different sides of the threshold because their withholding and credits differ.

Your obligation can change from year to year. A large one-time gain, a jump in self-employment income or the loss of a withholding source can push you over the threshold. A drop in income can bring you back under it. The CRA looks at two years of history, so a single high year is not always enough on its own to trigger instalments.

The four instalment due dates

For individuals, the CRA sets four instalment due dates each year. Each date covers roughly one quarter of the tax year.

Missing a date can trigger interest from that date forward, even if you pay the full amount later. The CRA applies payments to the oldest outstanding instalment first, so a late March payment can leave you carrying interest until the balance is cleared.

Farmers and fishers have one due date

If you earn income from farming or fishing, the schedule is simpler. Farmers and fishers have a single instalment due date of December 31 instead of four quarterly dates. That one payment covers the full instalment obligation for the year. If you are not sure whether you qualify, check the CRA guidance or speak with a tax professional.

The two instalment reminders

The CRA sends two instalment reminders each year using form INNS1. The first arrives in February and covers the March and June payments. The second arrives in August and covers the September and December payments. These reminders are not bills. They show the amounts the CRA has calculated for you and the options you can use to work out your payments.

Keep both reminders. They give you the CRA's own numbers, which you can compare against your own estimate. If you have not received a reminder but think you should be paying instalments, check your CRA account or contact the CRA.

Your three calculation options

If the August reminder does not mention a March or June payment, you have three ways to work out what to pay for the rest of the year. Each one suits a different situation, and you can switch between them as your circumstances change.

No-calculation option

With the no-calculation option, you pay the amount shown in box 2 of your instalment reminder. This is the simplest route because the CRA has already done the math. It tends to work well if your income is steady and you expect this year to look much like last year.

Prior-year option

With the prior-year option, you pay 75% of your 2025 net tax owing on September 15 and 25% on December 15. This can suit you if your income is falling and you expect to owe less this year than last year. It bases the payment on a known figure rather than a guess about the current year.

Current-year option

With the current-year option, you estimate your 2026 net tax owing and pay instalments based on that estimate. This can suit you if your income is rising or is uneven. The risk is that an estimate that comes in too low can lead to interest, so it pays to be careful when you forecast.

Avoiding instalment interest and penalties

If you pay your instalments in full by the due dates, the CRA will not charge instalment interest or a penalty, unless your estimated instalment amounts are too low. The safest approach is to pay at least the amount the CRA calculates for you, then top up later if your income turns out higher than expected.

Interest on late or short instalments can grow over the year, and a penalty may apply in some cases. The CRA's instalment pages explain when a penalty applies. Keeping your payments on track is the simplest way to avoid both.

How to make an instalment payment

The CRA offers several payment methods, and the one you choose can affect how quickly the payment is recorded.

1. Sign in to your CRA account and use the payment options listed there.
2. Pay through your bank or financial institution using the CRA as a payee.
3. Set up a pre-authorized debit so each instalment leaves your account automatically.
4. Use a credit card or debit card through the CRA's payment service provider, keeping in mind any service fee.
5. Send a cheque or money order by mail, allowing enough time for it to arrive before the due date.

Whichever method you use, keep the confirmation. If a payment is credited late, proof of the payment date can help you sort out an interest charge.

Getting help with your instalments

Instalments can be confusing because they depend on income you have not finished earning yet. If your situation is simple and steady, the no-calculation option usually removes the guesswork. If your income swings, the prior-year and current-year options give you room to match your payments to what you expect to owe.

This guide is general information only. It is not tax advice, and rules, thresholds and dates can change. Before you decide what to pay, confirm your obligation with the CRA or a qualified tax professional.