Who Must Pay Tax Instalments in Canada? $3,000 Test

17 October 2026 · en-CA · Educational information · No affiliate links

General information, not tax, legal or financial advice. We are not the Canada Revenue Agency (CRA). Check Canada.ca or ask a qualified professional. Sources read on 17 October 2026. Dates after 2026 are expected until the CRA publishes its own 2027 notices. Examples use made-up numbers. This page contains no affiliate links.

Short answer: per the CRA page written for 2026, you have to pay instalments for the year if both apply: your net tax owing for that year is more than $3,000 ($1,800 for Quebec), and your net tax owing in either of the two previous years was also more than that amount. The province where you live on 31 December determines which threshold applies. For 2027 instalments, the same test is expected to apply to 2027 and 2026 or 2025; the CRA had not published a 2027 page when we checked.

Who may have to

The CRA says you may have to pay by instalments if your income does not have enough tax withheld, or you are self-employed, have rental or investment income, certain pension payments, or income from more than one job. If your main source of income is farming or fishing you may also have to make instalment payments.

Reminders

• The CRA sends instalment reminders to people who will likely have to pay.
• If you received a reminder but your net tax owing for the year is $3,000 or less ($1,800 for Quebec), you do not have to pay instalments for that year.
• If you only received the August reminder, you may reduce or stop payments if instalments already paid cover your estimated net tax owing, or you expect your net tax owing to be $3,000 or less.
• Required but unpaid instalments may lead to interest and penalty charges.

Example (made-up numbers)

Net tax owing was $4,500 in 2025 and $5,000 in 2026. A freelancer expects about $4,000 for 2027. If the same test applies in 2027, both parts appear met, so instalments may be required for 2027; confirm with the CRA reminder and the calculation chart.

Quebec residents

Revenu Québec says that if you do not receive form TPZ-1026.A-V, you must determine yourself whether you have to make instalment payments, using form TP-1026-V or by contacting Revenu Québec.

Related

Dates: instalment dates.

FAQ

Net tax owing, or total tax? The CRA page uses net tax owing, with a calculation chart for the amount.

I got no reminder. Am I safe? The CRA page does not say that; read the page and check your CRA account.

What we could not verify

• CRA interest and penalty amounts (late filing, late payment, instalment interest): not read, so none are given on this page. Check Canada.ca.
• The $3,000 and $1,800 thresholds and the two-prior-years test are confirmed for 2026 only; for 2027 instalments they are not verified (the 2027 page is not published).
• How CPP contributions and voluntary EI premiums enter the calculation (mentioned by the CRA but not detailed here).
• Administrative practice on missing reminders: not read from CRA.

Sources (official)

• Canada.ca, Who has to pay - Required tax instalments for individuals — https://www.canada.ca/en/revenue-agency/services/payments/payments-cra/individual-payments/income-tax-instalments/who-pays-instalments.html (read in full, 17 October 2026; the page is written for 2026 instalments)