If you earn income from Uber, DoorDash, or other gig platforms, the Canada Revenue Agency (CRA) may require you to make quarterly tax instalments. Whether you need to pay depends on your net income from self-employment and your previous tax owing. Most gig workers don't owe instalments in their first year, but once you exceed $3,000 in tax payable, CRA typically requires you to pay four times per year rather than waiting until tax filing day. Not all gig workers are required to make quarterly instalments. This rule applies when specific CRA criteria are met. You may need to pay quarterly instalments if: Your net self-employment income regularly exceeds $35,000 per year Your previous year's tax payable was more than $3,000 CRA has sent you a notice asking you to make instalments You didn't pay your full tax balance on time in the past two years The key factor is your tax liability, not just your gross income. If you have significant deductions like vehicle expenses or home office costs, your actual tax owing might be lower than you think. Use the Self-Employed Tax Estimator to see where you stand.
Not automatically. CRA only requires instalments if your net self-employment income regularly exceeds $35,000 annually or if your previous year's total tax owing was more than $3,000. Many part-time gig workers don't meet these thresholds.
CRA charges daily compound interest on any unpaid instalment balance. The interest rate adjusts quarterly and is typically around 8% annually. You may also face a failure-to-pay penalty if instalments are repeatedly missed.
Yes. You can contact CRA to request lower instalments if you expect to earn significantly less than last year. You must notify CRA before your next instalment due date to avoid interest charges on overpayments.
The simplest method is to pay 25% of your previous year's total tax owing in each quarter. Alternatively, you can estimate your current year's tax and divide by four. Use CRA's prescribed method if they send you a notice of assessment.
Any overpayment is credited to your tax account and refunded when you file your tax return, or you can request a refund sooner by contacting CRA. You won't earn interest on the overpaid amount.