How do I calculate my quarterly tax instalments in Canada?

Use CRA's prior-year method: take your net tax owing from last year's T1 and divide by four. Pay that amount on March 15, June 15, September 15, and December 15. If you expect significantly higher or lower income this year, use the current-year estimate method instead.

What happens if I miss a quarterly tax payment?

CRA charges compound daily interest from the original due date at the prescribed rate (currently 8-10% annually). If total instalment interest for the year exceeds $1,000, a 50% surcharge is added on top. Interest begins accumulating on the missed due date — not at April 30.

Quarterly Tax Calculator Canada | Estimate CRA Instalments Free

Q: When are CRA quarterly tax payments due?

CRA quarterly instalment due dates are: March 15, June 15, September 15, and December 15. Any remaining balance is due April 30 (or June 15 for self-employed individuals, though instalment due dates are unchanged).

Q: Can I pay more or less than the calculated instalment?

Yes. If you pay at least the no-calculation or prior-year method amounts, CRA will not charge instalment interest regardless of your final tax balance. Paying more than required creates a credit that can be applied to your April 30 balance or refunded.

How to Estimate Quarterly Taxes in Canada

CRA requires quarterly instalment payments from anyone whose net tax owing exceeds $3,000 in the current year and either of the two preceding years. This typically includes self-employed individuals, rental property owners, investors, and retirees whose income isn't fully withheld at source.

CRA offers three approved methods to calculate your instalments. You can use whichever results in the lowest payment — as long as you don't underpay, you won't owe any instalment interest.

Method	How It Works	Best For
1. No-Calculation	Pay the exact amounts on CRA's instalment reminders	Most taxpayers — guaranteed no interest
2. Prior-Year	Last year's net tax ÷ 4 = each quarterly payment	Income similar to last year
3. Current-Year Estimate	Estimate this year's tax and divide by 4	Income significantly higher or lower than last year

💡 Pro Tip: The no-calculation method is the safest option. Even if you end up owing more at tax time, you won't be charged instalment interest as long as you paid what CRA requested.

Step-by-Step: Prior-Year Method Example

This is the most commonly used method. Here's how it works in practice:

📋 Example — Self-Employed Consultant, Alberta

Last year's net income$120,000

Estimated federal tax (2025)$22,300

Estimated Alberta provincial tax$8,400

CPP contributions (self-employed)$7,900

Total net tax owing$38,600

Quarterly payment (÷ 4)$9,650 each

2026 CRA Instalment Due Dates

All four quarterly payments are due on fixed dates each year. Missing a due date triggers immediate interest accrual — even if you pay shortly after.

March 15, 2026 — First instalment payment
June 15, 2026 — Second instalment payment
September 15, 2026 — Third instalment payment
December 15, 2026 — Fourth instalment payment

⚠️ Important: The April 30 tax filing deadline is separate from instalment due dates. Instalments are pre-payments during the year — your final balance is settled when you file your T1 return.

What Happens If You Miss a Payment?

CRA charges compound daily interest on missed or underpaid instalments starting from the due date — not from April 30. The current prescribed rate is 8–10% annually.

If your total instalment interest for the year exceeds $1,000, CRA adds a 50% surcharge on the excess. A missed March 15 payment can therefore accumulate over 13 months of interest before you file.

However, interest charges can be offset by instalment credits — if you overpaid on one instalment, CRA credits that amount against interest on a later underpayment.

Who Must Pay Quarterly Instalments?

You're required to make instalment payments if your net tax owing exceeds $3,000 in both the current year and at least one of the two preceding years. Common groups include:

Self-employed individuals and freelancers
Rental property owners with significant rental income
Investors with large capital gains or investment income
Retirees receiving pension income without adequate withholding
Small business owners paying themselves through dividends

Need more detail? Read our full guide: How to Estimate Quarterly Taxes in Canada →

Reduce Your Tax Instalments Legally

The best way to lower your quarterly payments is to reduce your overall tax liability through strategic planning. Common approaches for Calgary business owners and contractors include:

Maximizing RRSP contributions before year-end
Optimizing salary vs. dividend mix for incorporated owners
Claiming all eligible business deductions and home office expenses
Timing capital gains and losses to minimize annual exposure

Learn how we reduce taxes for Calgary businesses →

🧮 Instalment Calculator

Estimate your quarterly CRA payments

Last Year's Net Tax Owing (from your T1 Notice of Assessment)

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Estimated Annual Income This Year

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Each Quarterly Payment

Based on $0 annual tax

Mar 15, 2026

Jun 15, 2026

Sep 15, 2026

Dec 15, 2026

Estimate only. Based on prior-year method or simplified 2025 rates. Consult a qualified accountant for official tax advice.

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Frequently Asked Questions

Who needs to pay quarterly taxes in Canada?

You must pay quarterly instalments if your net tax owing exceeds $3,000 in the current year AND either of the two preceding tax years. This commonly applies to self-employed individuals, rental property owners, investors with non-sheltered income, and retirees whose pension income isn't fully withheld at source.

What is the easiest way to calculate CRA instalment payments?

The easiest method is the no-calculation method: simply pay the amounts printed on CRA's instalment reminder letters. This guarantees no instalment interest regardless of your final tax balance. If you don't receive reminders, use the prior-year method: take your net tax owing from last year's Notice of Assessment and divide by four.

When are CRA quarterly tax payments due in 2026?

The 2026 instalment due dates are March 15, June 15, September 15, and December 15. Mark these in your calendar — CRA interest starts accruing on the due date itself, not when you file your return in April.

What happens if I miss a quarterly tax instalment?

CRA charges compound daily interest from the missed due date at the prescribed rate (currently 8–10% annually). If your total instalment interest for the year exceeds $1,000, a 50% surcharge is added to the excess. A missed March 15 payment can accumulate over 13 months of interest before you file your April return.

Can I pay more than my required quarterly instalment?

Yes. Overpaying an instalment creates an instalment credit with CRA, which offsets interest charges on any underpaid instalments later in the year. Excess credits are applied against your April 30 balance or refunded after you file.

Is this quarterly tax calculator accurate?

The prior-year method gives an exact result based on your actual tax history. The current-year estimate uses simplified 2025 federal and provincial rates as a planning tool — it's designed to give a reasonable estimate, not an official CRA calculation. For precise figures, consult a qualified accountant or refer to your CRA My Account portal.

Quarterly Tax Calculator Canada