Quarterly tax instalments are required for self-employed Canadians whose net tax owing exceeded $3,000 in the current year and either of the two prior years. Here are the 2026 dates, how to calculate the right amount, and how to avoid interest.
2026 Instalment Due Dates
| Instalment | Due Date |
|---|---|
| Q1 — First payment | March 15, 2026 |
| Q2 — Second payment | June 15, 2026 |
| Q3 — Third payment | September 15, 2026 |
| Q4 — Fourth payment | December 15, 2026 |
If a date falls on a weekend or statutory holiday, it shifts to the next business day.
When Are Instalments Required?
Instalments are required when:
- Your net tax owing (income tax + CPP, minus source deductions) will exceed $3,000 in the current year, AND
- It exceeded $3,000 in either 2025 or 2024
In Quebec, the threshold is $1,800. All other provinces use $3,000.
First-year self-employed Canadians whose 2025 tax owing exceeds $3,000 will not receive instalment reminders for 2026 — the CRA looks at two prior years to trigger the requirement. However, if 2025 and 2024 both exceeded $3,000, you will receive 2026 instalment reminders from the CRA in February and August.
Three Calculation Methods
Method 1 — Prior Year (Safest)
Pay ¼ of your prior year’s net tax owing each quarter. If you owed $10,000 in 2025, pay $2,500 per quarter in 2026. No instalment interest even if you owe more at year-end, as long as you pay the prior year’s amounts on time.
Method 2 — CRA Instalment Reminders
Pay the amount shown in CRA’s instalment reminder notices (issued in February and August). These are based on your 2 prior years’ tax. Follow them exactly and no instalment interest applies.
Method 3 — Current Year Estimate
Estimate your current year’s tax owing and pay ¼ per quarter. If you underestimate, instalment interest applies on the underpaid amounts. Useful if your income dropped significantly from prior years.
You may use different methods for different quarters. The CRA compares the total you paid against the safe harbour amounts from Methods 1 and 2 when assessing interest.
How to Pay
- Online banking: Add “CRA — personal income tax 2026 (instalment)” as a payee. Your bank’s bill payment search will find it.
- CRA My Account → Make a Payment → 2026 Tax Instalment: Direct payment via Interac or financial institution
- Cheque: Make payable to “Receiver General for Canada” — include your SIN and note “2026 Tax Instalment” on the memo line. Mail to the CRA tax centre for your province.
Instalment Interest: What You Owe If You Miss
Missing or underpaying an instalment triggers instalment interest calculated from the missed payment date. The CRA prescribed interest rate for Q1 2026 is approximately 7–8%, compounded daily. Unlike late-filing penalties, instalment interest cannot be waived through the Taxpayer Relief provisions in most cases.
If you have instalment interest but also overpaid on your final return, the CRA may offset the overpayment against the instalment interest — but does not eliminate it entirely.
Frequently Asked Questions
Do GST/HST instalments follow the same dates?
No — GST/HST and income tax instalments are separate. GST/HST quarterly remittances are due one month after each quarter’s end (April 30, July 31, October 31, January 31). Income tax instalments are due on March 15, June 15, September 15, and December 15.
What if I have both employment income (with source deductions) and self-employment income?
Instalment requirements are based on net tax owing — income tax and CPP after all source deductions. If your employer withholds more than enough to cover your total combined tax bill, instalments may not be required. If self-employment income pushes your net owing over $3,000 two years running, instalments apply. Your tax software or CPA can calculate your instalment requirement based on the combined picture.
Can I pay more than the instalment amount to reduce my April 30 balance?
Yes. Paying more than the required instalment amount reduces your April 30 balance accordingly. Overpayments made as instalments are applied to your final return and any surplus is refunded. The CRA does not pay interest on overpaid instalments.