CRA Instalment Payment Calculator
Calculate your quarterly tax instalments for 2025. Compare all three CRA methods, find the lowest payment option, and get your full payment schedule with due dates.
Your Information
Your best estimate of 2025 net income from all sources
From your 2024 Notice of Assessment
Needed for the Prior-Year Method (Method 2)
From employment T4, pension, or RRIF withholding
CRA Tax Instalments: A Guide for Canadians
If you earn income that isn't subject to withholding at source — such as self-employment income, rental income, or significant investment income — the CRA may require you to pay your taxes quarterly rather than in a single lump sum at tax time.
When Are Instalments Required?
You must pay instalments if your net tax owing (federal + provincial, after credits) exceeds $3,000 (or $1,800 in Quebec) in the current year AND in at least one of the two preceding years. CRA will generally send you an instalment reminder notice in February and August if you're required to pay.
The Three CRA Instalment Methods
The No-Calculation Method uses your prior year's tax bill divided into 4 equal payments — the simplest option. The Prior-Year Method uses two years ago as the base for Q1 and Q2, then adjusts to last year's total for Q3 and Q4. The Current-Year Method lets you pay based on your estimated current year income — ideal if your income has dropped significantly.
Interest and Penalties for Late or Missed Payments
CRA charges interest on late or insufficient instalments at the prescribed rate (currently 10% for 2025) compounded daily. There is also an instalment penalty if your instalment interest exceeds $1,000 — the penalty equals 50% of the instalment interest minus the greater of $1,000 or 25% of the interest payable had you made no instalments. Paying on time is always the best strategy.
Self-Employed CPP Contributions
Self-employed individuals pay both the employee and employer share of CPP — effectively double (11.9% of net earnings up to maximum). This significantly increases instalment obligations compared to an employee earning the same income. CPP contributions are factored into your total instalment calculation.
How to Pay CRA Instalments
Instalments can be paid through online banking (CRA is a payee at most banks), through My Account on the CRA website, by cheque (made out to the Receiver General), or at a Canada Post outlet. Always use your SIN and indicate the tax year. Keep proof of payment.