Employees have tax taken off every paycheque. Freelancers don't, so the CRA may ask you to prepay income tax (and CPP) in instalments during the year instead of in one lump sum on April 30.
You may have to pay instalments for 2026 if your net tax owing is more than $3,000 ($1,800 in Quebec) for 2026 and in either 2025 or 2024. Your province of residence on December 31 decides which threshold applies.
That's why many people's second or third year of freelancing is when instalment reminders start arriving.
March 15, June 15, September 15, December 15 (farmers and fishers: December 31). The CRA sends reminders in February (for March and June) and August (for September and December).
| Option | How it works | Good when |
|---|---|---|
| No-calculation | Pay the amounts on your CRA reminders. | Your income is steady; simplest. |
| Prior-year | Based on last year's net tax owing plus CPP contributions. | This year's income is similar to or higher than last year's. |
| Current-year | Based on your estimate for this year. | Income is dropping. But if you underestimate, you may owe interest. |
These are separate. If you're a GST/HST annual filer, you may also have to pay quarterly GST/HST instalments, generally due within one month after the end of each fiscal quarter. Check the instalment details in your CRA business account.
Set aside a fixed percentage of every payment you receive (income tax, CPP, and GST/HST in separate buckets). A monthly view of income and expenses makes it much easier to tell whether the prior-year or current-year option suits you. See also how to track GST/HST.
Free tool: estimate your 2026 CPP and CPP2 with the self-employed CPP calculator.
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.
Generally not. You may have to pay instalments for 2026 only if your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and in either 2025 or 2024. The CRA usually sends a reminder if it thinks you need to pay.
March 15, June 15, September 15 and December 15. If a date falls on a weekend or public holiday, you have until the next business day.
You may be charged instalment interest, and possibly a penalty, if you don't pay the required amount on time.