The CRA requires quarterly tax instalments when your net tax owing is more than … (… for Québec residents) in 2026 and in either 2025 or 2024. Self-employment income has nothing withheld, so freelancers are the classic instalment case. Estimate below whether 2026 instalments likely apply to you — and how much each payment would be.
You must pay 2026 instalments only if both are true: your net tax owing for 2026 will be more than … (… if you live in Québec), and it was also more than that threshold in 2025 or 2024. "Net tax owing" is roughly your total tax minus everything already withheld or credited — for the current-year calculation it also includes CPP contributions payable on self-employment income. If tax is withheld from a salary that covers most of your bill, you may owe nothing quarterly even with side income.
Québec residents pay federal instalments to the CRA at the lower … threshold (Québec income tax has its own separate instalment system through Revenu Québec, not covered by this estimator).
If a due date lands on a weekend or a CRA-recognized public holiday, your payment counts as on time if it arrives the next business day. If your main income is from farming or fishing, you make one instalment per year instead, due ….
The CRA mails (or posts to My Account) instalment reminders with amounts based on your last assessed returns. If you pay exactly what the reminders say, on time, the CRA charges no instalment interest even if the reminders turn out to be too low. Best when your income is stable year to year.
Base all four payments on your 2025 net tax owing. Best when 2026 will look like 2025 but not like 2024. No interest if you pay these amounts in full and on time — unless your basis was estimated too low.
Base payments on your estimated 2026 net tax owing (plus CPP payable) — that's what the estimator above computes. Best when 2026 income will drop significantly. The risk: if you underestimate, the CRA charges instalment interest retroactively, so pad your estimate if unsure.
The CRA charges instalment interest on late or insufficient payments, compounded daily at the prescribed rate (which resets every quarter). A separate instalment penalty applies only when your instalment interest for 2026 exceeds … — so small shortfalls cost interest, not penalties. Ignoring reminders entirely while owing thousands is what triggers real charges.
You can shrink or eliminate instalments by increasing tax withheld from other income (a salary, pension, or OAS/CPP benefits via form TD1/ISP3520). Tax can't be withheld from self-employment, investment, or rental income — which is why instalments exist.
Usually not. Instalments require your net tax owing to exceed the threshold this year and in one of the two previous years — in your first profitable year, the prior-year condition typically isn't met. Your first big bill lands at filing time instead, so set money aside monthly.
If instalments are actually required and you pay late or short, the CRA charges daily-compounded instalment interest, plus a penalty if that interest passes … for the year. If the reminders don't apply to you (say, your income dropped), you can pay based on the current-year option instead — or nothing, if your net tax owing will stay under the threshold.
GST/HST has its own separate instalment rules for annual filers — this page covers personal income tax instalments only. Your GST/HST account is a different account with its own payments.
Know your full bill first. The instalment estimate is only as good as the tax estimate underneath it — get your exact number, then track what you've paid.
Full Tax Calculator → Instalment Payment Tracker ($15) →One short email when a CRA deadline or figure that affects freelancers changes. No spam, unsubscribe anytime.