No tax comes off freelance income, so the CRA may ask you to prepay income tax and CPP during the year. The fourth and last 2026 instalment is due Tuesday, December 15, 2026. Here's how to tell whether it applies to you, how much to pay, and what happens if you're late. For the full background, see our CRA instalments guide.
You generally have to pay 2026 instalments if your net tax owing is more than $3,000 ($1,800 if you live in Quebec) for 2026, and for either 2025 or 2024. Your province of residence on December 31 decides which threshold applies.
The CRA gives you three options. You can use the one that leads to the least instalment interest.
| Option | What you pay | Best when |
|---|---|---|
| No-calculation | The December amount on your CRA reminder. | Your income is about the same each year. |
| Prior-year | Based on your 2025 net tax owing plus CPP contributions, generally in four equal payments. | 2026 looks like 2025 but very different from 2024. |
| Current-year | Based on your own estimate of 2026 net tax owing, CPP payable and any voluntary EI premiums. | 2026 income is much lower than in prior years. |
The CRA says that if you pay in full by the due dates under one of these options, it won't charge instalment interest or a penalty, unless your estimated amounts are too low. That's the risk with the current-year option: if you underestimate, interest can apply.
Your 2025 return showed $6,500 of net tax owing and $5,500 of CPP on self-employment income: $12,000 in total. Four equal instalments would be $3,000 each, so the December 15 payment is $3,000 (assuming you paid the first three).
The CPP part is often the surprise. Use the free self-employed CPP calculator to estimate your 2026 CPP and CPP2 if you're using the current-year option.
Instalment interest applies if you're required to pay instalments for 2026, you got a reminder showing an amount, and you paid late, paid less, or didn't pay. The CRA:
You can reduce instalment interest by paying your next instalment early or paying more than required, which earns non-refundable credit interest for the same year. December 15 is the last 2026 instalment, so paying it early, or adding to it, is the last chance to offset a late or short earlier payment.
Whatever's still owing for 2026 is due April 30, 2027, even though self-employed people have until June 15, 2027 to file. See the 2026 year-end checklist for what to do before December 31.
GST/HST instalments are separate. If you're a GST/HST annual filer, you may also have quarterly GST/HST instalments with their own due dates. Check your CRA business account, and see how to file a GST/HST return.
Want this in a spreadsheet? The Canada Self-Employed Income, Expense & GST/HST Tracker ($19 CAD, Excel/Google Sheets) logs income, expenses by T2125 line, and GST/HST collected and paid, with monthly totals.
December 15, 2026 (a Tuesday). The four 2026 instalment dates are March 15, June 15, September 15 and December 15. Farmers and fishers make one payment, due December 31.
Only if you're required to pay instalments for 2026: generally, your net tax owing is more than $3,000 ($1,800 in Quebec) for 2026 and for either 2025 or 2024. The CRA usually sends a reminder in August for the September and December payments if it thinks you need to pay.
If you were required to pay and got a reminder showing an amount, the CRA charges instalment interest on late or short payments. It's compounded daily at the prescribed rate (7% for October 1 to December 31, 2026) and runs to your balance-due date. A penalty applies only if your 2026 instalment interest is more than $1,000.
Paying your next instalment early or paying more than required earns instalment credit interest, which can offset interest charged on the late or short payment for the same year. It isn't refundable.
Yes. Instalments for self-employed people cover income tax plus CPP contributions payable (and voluntary EI premiums, if you opted in).
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