04/12/2026
Trying to understand instalments? Here are the most common questions I get 👇
Do I need to pay instalments?
👉 If you owed more than $3,000 in taxes this year AND in one of the last 2 years.
👉 CRA will likely require you to pay quarterly instalments.
Can I just pay everything at tax time?
👉 Yes but if CRA expected instalments, you may be charged interest and penalties even if you pay it all later.
Why does CRA do this?
👉 They want taxes paid throughout the year, not in one lump sum.
👉 Employees pay tax on every paycheck, this keeps it fair.
What if I pay everything early instead?
👉 That is fine, as long as you pay enough, there are no penalties.
What happens if I do not pay enough?
👉 CRA may charge instalment interest and penalties.
What if I overpay?
👉 You will get it back as a refund when your taxes are filed.
‼️ Important
Instalments are not extra tax, you are just paying your tax earlier.