Self-employed Canadians don't have an employer to deduct income tax from their paycheques, which means you're responsible for paying taxes in full when you file your return or through quarterly installments if you owe a certain amount. The Canada Revenue Agency (CRA) expects payment by June 15 for the previous tax year, and if you owe $3,000 or more in tax for the current year or either of the two preceding years, you may be required to make quarterly tax installments. Missing these payments or deadlines can result in interest charges and penalties, so understanding your payment obligations is critical for staying on the right side of the CRA. Unlike salaried employees, self-employed individuals face two main payment deadlines each year: Annual Payment Deadline Your balance-owing tax payment is due by June 15 of the year following the tax year. This applies whether you file your return on time or claim a filing extension. However, interest starts accruing on unpaid amounts after May 31 at the prescribed CRA interest rate. Quarterly Installment Payments If the CRA has notified you that you must pay quarterly installments, payments are due on March 15, June 15, September 15, and December 15.
The main balance-owing payment is due by June 15 of the year following the tax year. If you're required to pay quarterly installments, those are due on March 15, June 15, September 15, and December 15. Interest begins accruing on unpaid amounts after May 31, even if you haven't filed yet.
No. You only need to pay quarterly installments if the CRA has notified you that you owe $3,000 or more in tax for the current year or either of the two preceding years. Most self-employed people with lower or inconsistent income won't be required to make installments.
Yes. If your 2026 income is significantly lower than expected or your tax situation has changed, you can request an adjustment by submitting Form T1033 to the CRA before your next installment due date. Your request must be approved by the CRA.
Missing a payment triggers both interest charges (currently around 11% annually) and a late payment penalty equal to the lesser of $100 or 50% of the interest owing. If you miss quarterly installments, you may face an additional installment failure penalty.
Contact the CRA immediately to discuss payment options. The CRA may allow you to set up a payment arrangement or payment plan if you've paid as much as you can. Unresolved debt can lead to collection action, including wage garnishment and bank seizure.