By Jason Heath, CFP on May 9, 2026 Estimated reading time: 4 minutes

Should you pay your tax instalment payments?

By Jason Heath, CFP on May 9, 2026 Estimated reading time: 4 minutes

Tax instalments can be confusing. Learn how the CRA calculates quarterly payments, when you can adjust them, and how to avoid interest and penalties.

If you generally owe when you file your tax return, you are probably accustomed to paying quarterly income tax instalments. These are requests to pay some of your estimated tax for the current tax year in advance, even though it is not due until the following April.

Everywhere but Québec, the trigger is owing $3,000 or more tax in two consecutive years. In Québec, it is a lower $1,800 threshold because taxpayers in that province file tax returns with Revenu Québec in addition to the Canada Revenue Agency.

Depending on the time of year, there are different considerations for whether to pay, play catch up, or skip a payment. After all, instalments are suggested payments, not balances owing, though there are interest and penalties at play, as well. 

If you are considering a March 15 instalment payment, keep in mind that the CRA bases your March and June instalment reminders on the tax owing from two years earlier, because your previous year’s return may not yet have been filed and........

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