Table of contents
TechNextPicks Editorial
Canada Edition
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Issue: Feb 2026
Installments
Planning
CRA notice
Cash flow
Self-Employed Tax Installments in Canada (2026): What They Are + How to Plan
Installments are advance tax payments spread across the year. This guide is for planning only—general info, not tax advice.
If you only read one thing…
- CRA may ask some taxpayers to pay installments based on prior years.
- The safest approach is budgeting monthly or quarterly so you are not surprised.
- Your CRA notice is the best indicator for your situation.
- Filing deadlines can differ from payment timing.
General information only — not tax advice.
What are tax installments?
Installments are advance payments toward your annual income tax. CRA uses them to reduce large year-end balances and smooth payment timing over the year. Self-employed people often see them, but they can also apply to other situations with recurring tax owing.
If CRA expects installments, they typically send a notice. Always check your CRA notice for official expectations.
When you might see them
Installments often relate to prior-year balances. If your net self-employment income has been growing or you usually owe at tax time, your risk can be higher. Even without a notice, many people plan a buffer to avoid surprises.
This is a planning concept only. CRA rules vary and your notice is the best source of truth.
How installment schedules usually work
CRA often uses quarterly due dates for installment planning, but dates can vary by year. Use the CRA important dates page for the current schedule.
CRA important datesReminder: self-employed filing can be later than most taxpayers, but payment can still be due earlier.
How to plan (the practical system)
Year-round plan
- Set aside a portion of net income each month.
- Use a separate savings account for tax planning.
- Do a quarterly check-in on income and expenses.
- Keep receipts organized as you go.
Helpful links
Installment Planning Checker
Use this to gauge your planning risk. General info only — not tax advice.
Planning risk
Low
This is a planning hint based on the details you entered. Check your CRA notice for official guidance.
Suggested set-aside approach
Quarterly planning with a range of 15–20% of net income.
Reminders
- CRA notices are the best indicator of installment expectations.
- Self-employed filing can be later than most taxpayers, but payment can still be due earlier.
- Keep a separate savings buffer so cash flow stays smooth.
Helpful guides
Common self-employed mistakes
- Waiting until April to save money.
- Mixing business and personal spending.
- Not tracking vehicle or home office usage properly.
- Ignoring CRA communications.
- Not saving separately for GST/QST remittances (especially in Quebec).
- Inconsistent bookkeeping during the year.
- Relying on memory instead of organized records.
FAQ
What are tax installments?
Installments are advance payments toward your annual tax bill. They spread payments across the year.
How do I know if I need them?
CRA may send a notice. Your CRA notice is the best indicator.
What if my income drops?
If income changes, you can adjust your planning. Check CRA guidance for your situation.
Can I pay more or less than suggested?
You can often adjust what you set aside, but the CRA notice should guide any official amounts.
Do installments replace filing?
No. You still file your tax return after year-end.
Are installments only for self-employed?
Self-employed people often see them, but others with investment income may too.
What if I am in Quebec?
Quebec residents may have additional obligations. Check Revenu Québec guidance.
Does GST/QST change this?
Sales tax remittances are separate from income tax installments.
Can I set aside monthly instead of quarterly?
Yes. Many people prefer monthly set-asides for smoother cash flow.
Where can I check official dates?
Use the CRA important dates page for the current year.
Keep learning
CPP vs QPP for Self-Employed
Planning-focused guide to CPP/QPP basics and cash flow.
Read the CPP/QPP guideSelf-Employed Vehicle Expenses Canada
Business-use rules, mileage logs, and proof to keep.
Read the vehicle guide