If you've ever gotten a CRA "instalment reminder" and wondered whether you really have to pay tax before you've filed, you're not alone. Here's how tax instalments work in Canada for 2025 and how to avoid the interest.
You generally must pay instalments if your net tax owing is more than $3,000 ($1,800 in Quebec) in the current year and in either of the two previous years. This commonly catches the newly self-employed, investors, and retirees with multiple income sources.
| Instalment | Due date |
|---|---|
| Q1 | March 15 |
| Q2 | June 15 |
| Q3 | September 15 |
| Q4 | December 15 |
Most corporations pay monthly instalments; eligible small CCPCs may pay quarterly.
If you underpay, the CRA charges instalment interest (and possibly a penalty). Following the no-calculation option protects you even if you end up owing more. Estimate your liability first with our taxable income calculator, and see related dates in our tax deadlines guide.
Our Calgary tax planning team sets up instalment strategies so clients never overpay or get caught by interest. Get in touch.
You generally must pay instalments if your net tax owing exceeds $3,000 ($1,800 in Quebec) in the current year and in either of the two previous years. This often affects the self-employed, investors, and retirees whose tax isn't withheld at source.
For individuals, instalments are due quarterly on March 15, June 15, September 15, and December 15. Most corporations pay monthly instalments, while some small CCPCs qualify to pay quarterly.
There are three options: pay the no-calculation amounts on the CRA's reminder, base them on the prior year's tax, or estimate the current year and pay a quarter each period. The no-calculation option protects you from instalment interest even if you end up owing more.
Pay at least the amounts shown on the CRA's instalment reminders by each due date — the no-calculation option shields you from interest. Underpaying or paying late can trigger instalment interest and, in larger cases, a penalty.
Have questions about personal tax? Swift Accounting Ltd. helps Calgary business owners get it right. Contact us for a free consultation.
