When individuals have to pay
Instalments cover the tax you would otherwise pay in one amount on April 30. You generally need to pay for 2026 if your net tax owing is more than $3,000 ($1,800 in Quebec) for 2026 and also for either 2025 or 2024. The CRA sends reminders in February and August to people who will likely have to pay. Instalment interest generally applies when you were required to pay and a reminder showed an amount to pay.
For 2026 the payment dates are March 15, June 15, September 15 and December 15, with the next business day applying when a date falls on a weekend or holiday. Farmers and fishers whose main income is from that work have a single date, December 31.
Choosing how to calculate
There are three options. The no-calculation option uses the amounts on your CRA reminder. The prior-year option uses your 2025 tax return and suits a year similar to 2025 but quite different from 2024. The current-year option uses your own estimate for 2026 and suits income that has changed a lot. With the prior-year or current-year option, paying the full amounts on time means no instalment interest or penalty, unless your estimated amounts were too low.
As an illustration, someone with $6,000 of net tax owing in both 2025 and 2024 who expects a similar amount in 2026 is above the threshold. Someone with $2,800 of net tax owing is below it and is not required to pay. You can also lower your instalments by asking pension payers to withhold more tax, although tax cannot be withheld from self-employment, rental or investment income.
How instalment interest works
The CRA charges instalment interest on missed, late or insufficient payments, compounded daily at the prescribed rate, which can change every three months. It is generally calculated from each due date to your balance-due date, using the calculation option that gives the least interest. A charge is made only if it exceeds $25.
A penalty applies only when your instalment interest for the year is more than $1,000. Overpaying or paying your next instalment early can create credit interest to offset charges for the same year.
How corporations differ
Corporations are generally required to pay monthly, with the first payment due one month less a day from the start of the tax year. A CCPC may pay quarterly if it has a perfect compliance history and, with associated corporations, taxable income of $500,000 or less and taxable capital employed in Canada of $10 million or less, for the current or previous year. No instalments are required for most taxes in a first tax year, or when tax payable is $3,000 or less for the current or previous year. The balance of tax is due on the balance-due day, which is two months after year-end, or three months for some CCPCs.
Set aside cash for these payments. Discuss with your accountant which option fits your year, and keep a record of every payment and its date.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- 2026 individual instalment due datesCanada Revenue Agency
- Corporate income tax payment due datesCanada Revenue Agency
- Required tax instalments for individuals: Who has to payCanada Revenue Agency
- Required tax instalments for individuals: Options to calculateCanada Revenue Agency
- Required tax instalments for individuals: Interest and penalty chargesCanada Revenue Agency
- Corporate income tax payments: Who has to pay in instalmentsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.