CRA tax instalments: the December 15, 2026 payment
The last 2026 tax instalment for most individuals is due on Tuesday, December 15, 2026. If you are self-employed, earn rental or investment income, or have too little tax withheld from a pension or second job, the CRA may expect you to pay your tax in quarterly instalments during the year instead of in one lump sum on April 30, 2027. Not every reminder letter means you owe instalments, and the cost of getting it wrong is interest at the CRA's overdue rate, currently 7%.
This guide covers who has to pay CRA tax instalments, the 2026 and 2027 due dates, the three ways to calculate the amount, and how instalment interest and the instalment penalty work. All figures are from the CRA's instalment and prescribed interest rate pages as of November 4, 2026.
Who has to pay CRA tax instalments for 2026
You have to pay income tax by instalments for 2026 if both of these are true:
- your net tax owing for 2026 is more than $3,000 ($1,800 if you live in Quebec), and
- your net tax owing in either 2025 or 2024 was also more than $3,000 ($1,800 for Quebec).
Net tax owing is, broadly, your federal and provincial or territorial income tax for the year after credits and after tax already withheld at source. It does not include Canada Pension Plan contributions on self-employment income or voluntary EI premiums. Those are not part of the $3,000 test, but they are added to the instalment amount you actually pay.
The province or territory you live in on December 31 sets the threshold. If you are not over the threshold for 2026, you do not have to pay 2026 instalments, even if the CRA sent you a reminder.
Who typically ends up paying instalments
- Self-employed individuals, including sole proprietors and partners
- People with significant rental, interest, dividend or capital gains income
- Retirees whose pension or RRIF withholding does not cover their tax
- People with more than one job, where each employer withholds as if it were the only one
- Farmers and fishers whose main income is from farming or fishing (with a different due date, below)
Tax instalment due dates for 2026 and 2027
If a due date falls on a weekend or a public holiday the CRA recognizes, a payment the CRA receives on the next business day counts as on time.
| Instalment | 2026 tax year | 2027 tax year |
|---|---|---|
| First | March 15, 2026 | Monday, March 15, 2027 |
| Second | June 15, 2026 | Tuesday, June 15, 2027 |
| Third | September 15, 2026 | Wednesday, September 15, 2027 |
| Fourth | Tuesday, December 15, 2026 | Wednesday, December 15, 2027 |
| Farmers and fishers (single payment) | Thursday, December 31, 2026 | Friday, December 31, 2027 |
Instalments are not a replacement for the balance-due date. Any tax still owing after your instalments is due on April 30 of the following year, even if your return deadline is June 15 because you or your spouse or common-law partner earned self-employment income.
The instalment reminders: INNS1 and INNS2
The CRA sends instalment reminders (form INNS1) to people it expects will have to pay. The February reminder covers the March and June payments; the August reminder covers September and December. Farmers and fishers get a single reminder in November. In February the CRA also sends an instalment payment summary (form INNS2) showing what it has recorded for the year. You can see your reminders and payments in your CRA account under Accounts and payments.
A reminder is the CRA's estimate, not a bill. If you received one but your 2026 net tax owing will be $3,000 or less ($1,800 in Quebec), you do not have to pay. If you do have to pay and ignore the reminder, you may be charged instalment interest and a penalty.
Three ways to calculate your instalment amount
| Option | Based on | Who sets the amount | Interest risk |
|---|---|---|---|
| No-calculation | Your latest assessed return | The CRA, on your reminders | None if you pay the reminder amounts in full by each due date |
| Prior-year | Your 2025 return | You, using the CRA's 2026 calculation chart | None if paid in full and on time, unless your calculation is too low |
| Current-year | Your estimate of 2026 net tax owing, CPP contributions payable and voluntary EI premiums | You, using the 2026 calculation chart | Interest if your estimate turns out too low |
Why the no-calculation option is the safe default: when the CRA works out instalment interest, it measures your payments against the instalments you should have paid under whichever option produces the least interest. Paying exactly what the reminders say means you have met at least one option, even if your 2026 tax ends up higher. Any shortfall is then simply a balance due on April 30, 2027.
The current-year option suits a year when income has clearly dropped, for example after selling a rental property or winding down a business. It lowers the payments, but the risk is yours: if 2026 turns out better than your estimate, interest runs on the shortfall back to each due date.
Instalment interest and penalty: 2026 numbers
| Item | Rate or threshold (Q4 2026) | How it works |
|---|---|---|
| Instalment interest | 7% a year, compounded daily | The CRA's prescribed rate for overdue taxes for October 1 to December 31, 2026. It can change every quarter. |
| Minimum charge | $25 | Instalment interest is charged only if it exceeds $25 for the year. |
| Instalment penalty threshold | Interest over $1,000 | No penalty unless 2026 instalment interest is more than $1,000. |
| Instalment penalty | 50% of the excess | Half of (actual instalment interest minus the greater of $1,000 or 25% of the interest that would have applied with no instalments at all). |
| Credit interest | Not refundable | Paying early or overpaying earns credit interest that only offsets instalment interest for the same tax year. |
The CRA's own example: John's actual instalment interest is $2,500. Had he paid no instalments, his interest would have been $3,200, and 25% of that is $800. The $1,000 floor is higher, so his penalty is ($2,500 minus $1,000) divided by 2, or $750, on top of the interest.
For more on the current rates, including the 3% rate for shareholder loans, see our post on CRA prescribed interest rates for Q4 2026.
Missed a 2026 instalment? What to do before December 15
You cannot undo a late payment, but you can reduce the interest. Because the CRA nets credit interest on early or extra payments against interest on late ones within the same year, paying the December 15 instalment early, or paying more than the reminder asks, earns credit that offsets the interest building on a missed September payment. The sooner the catch-up money arrives, the more it offsets.
How to pay a tax instalment
- Online: through one of the CRA's online payment options, such as your bank's online bill payment or the CRA's own payment services.
- Pre-authorized debit: set up in your CRA account; no voucher is sent in that case.
- In person or by mail: with your instalment remittance voucher (form INNS3), so the payment lands on the right account. You can download it from your CRA account or request it from the CRA's automated line.
Allow about 3 business days for an online payment and 10 business days for a cheque before checking that it was applied, and keep proof of payment until it shows in your account or on your INNS2 summary.
Edge cases
Can I avoid instalments by increasing my withholding?
Yes. Tax withheld at source reduces net tax owing. The CRA's example is an Alberta resident receiving a pension whose net tax owing had been $3,500 for years. He asked his pension administrator, using Form TD1, to withhold an extra $250 a month, which brought his estimated 2026 net tax owing to $500. Because that is not over $3,000, he does not have to pay 2026 instalments and can disregard the reminders. Employees with a second job or a side business can do the same with their employer.
I moved to or from Quebec this year. Which threshold applies?
The one for the province or territory where you live on December 31. Living in Quebec on December 31, 2026 means the $1,800 test applies to 2026.
My income was high in 2024 but low in 2025. Do I still pay?
Only if 2026 is also over the threshold. The test needs 2026 to be over $3,000 and at least one of 2025 or 2024 over $3,000. A high 2024 alone does not require 2026 instalments if your 2026 net tax owing stays at $3,000 or below.
Does CPP on my self-employment income count toward the $3,000?
No, but it is part of what you pay. The threshold looks at net tax owing; the prior-year and current-year calculations then add CPP contributions payable and any voluntary EI premiums to the total instalment amount.
I am a farmer or fisher. When is my instalment due?
If farming or fishing self-employment income is your main source of income, you have one instalment date a year: December 31. For 2026 that is Thursday, December 31, 2026, and the CRA sends the reminder in November.
Do corporations follow these rules?
No. Corporations have their own monthly or quarterly instalment schedule tied to their fiscal year, not the calendar year. See our corporate tax instalments guide and the corporate tax instalment calculator.
What happens to instalments when someone dies?
Instalments due on or after the date of death do not have to be paid.
What to do now
- Check your CRA account for your August reminder and the September payment you made, if any.
- Estimate your 2026 net tax owing. If it is $3,000 or less ($1,800 in Quebec), you can stop.
- If you are over, pay at least the reminder amount by Tuesday, December 15, 2026, and pay early if you missed or shorted September.
- For 2027, decide now whether extra withholding or a lower current-year estimate makes more sense than quarterly payments.
RN Canada prepares personal and corporate tax returns for business owners and can work out your instalment position as part of year-end planning. Your April 30, 2027 balance-due date and your return deadline stay your own. Talk to us through our contact page; we work from offices in Edmonton and Vancouver and with clients across Canada remotely.