Who has to pay installments?

Anyone whose net tax owing was over $3,000 ($1,800 in Quebec) in EITHER the current year AND one of the two preceding years. This typically catches: self-employed individuals, retirees with no withholding, those with significant investment income, or people with multiple income sources where withholding is insufficient.

When are installment payments due?

March 15, June 15, September 15, and December 15. If the date falls on a weekend or holiday, the deadline shifts to the next business day.

What are the three methods?

1) No-calculation: pay the amounts on the CRA installment reminder (Form INNS1) — safest, no penalty even if you owe more. 2) Prior-year: 25% of last year's net tax owing × 4 installments. 3) Current-year: estimate this year's tax and divide by 4. Use whichever produces the lowest TOTAL while still avoiding penalty.

CRA charges installment interest (compounded daily, currently 10% annualised in 2025) plus a penalty if interest exceeds $1,000. The no-calculation method is interest-free even if your actual tax exceeds the suggested amount.

Can I overpay or pay early?

Yes — paying early earns 'contra-interest' that offsets late-payment interest in the same period. Overpaying just becomes a refund or a credit toward next year's installments.

CRA Tax Installment Estimator

Finance· 37 tools

Free CRA installment estimator. If your net tax owing exceeded $3,000 ($1,800 in Quebec) in either of the prior two years, CRA requires quarterly installment payments. This tool estimates your 4 installment amounts using the three CRA-allowed methods: no-calculation (CRA's reminder figure), prior-year, or current-year estimate.

Method

25% × prior year's net tax owing × 4. Conservative.

Prior year net tax owing (CAD)

Threshold· Required if net tax owing > $3,000 ($1,800 Quebec) in current year AND one of two prior years

Late interest currently 10% annualised, compounded daily

Each installment

$4,000

× 4 = $16,000 annual

Due dates (2026)

March 15$4,000

June 15$4,000

September 15$4,000

December 15$4,000

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

References

Paying your income tax by instalments — Canada Revenue Agency

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