Tax comes off your paycheque. You may still owe the CRA on September 15.
A salary does not rule out instalments. Check the CRA threshold, an August-only reminder and the date your payment method counts as paid before Tuesday’s deadline.
A salary does not rule out tax instalments. Too little tax withheld across jobs, or extra income from rentals, investments or self-employment, can bring you into the CRA's instalment rules.
The next general deadline is Tuesday, September 15, 2026. The practical question is whether your income and tax history meet the test below. If they do, check your reminder and payment method before the deadline: paying late or too little can create an interest charge.
Does the September deadline apply to you?
The general schedule is March 15, June 15, September 15 and December 15. If a date falls on a weekend or CRA-recognized holiday, payment received the next business day is on time. People whose main income is self-employment from farming or fishing have one annual instalment date, December 31.
For the CRA threshold test, your 2026 net tax owing must exceed CAD 3,000, and it must also have exceeded CAD 3,000 in 2025 or 2024. For Quebec residents, both thresholds are CAD 1,800. Residence on December 31 determines which applies. A reminder does not require instalments if your 2026 net tax owing is at or below the applicable threshold.
Why an August-only reminder can make September larger
If your August reminder mentions no March or June payment, the August-only rules matter. The no-calculation option follows box 2. The prior-year and current-year options put 75% of the calculated total in September and 25% in December.
Those calculation options use the relevant year's net tax owing plus applicable CPP contributions and voluntary EI premiums. Suppose that correctly calculated total is CAD 4,000. This is a hypothetical illustration:
| August-only prior-year or current-year example | Calculation | Amount |
|---|---|---|
| September 15 | 4,000 × 75% | CAD 3,000 |
| December 15 | 4,000 × 25% | CAD 1,000 |
For that taxpayer, setting aside only a quarter would leave September CAD 2,000 short. The cash-flow lesson is to read the reminder's schedule before dividing an annual estimate into four equal payments.
How the CRA calculates a late-payment charge
The CRA charges instalment interest when all three conditions apply: you must pay 2026 instalments, you received a 2026 reminder showing an amount, and a payment was missing, late or too small.
Interest compounds daily; the annual rate can change quarterly. The announced overdue-tax rate is 7% for July–September 2026 and 7% for October–December 2026. Those rates do not establish a 2027 rate.
The final calculation compares interest on required instalments through the balance-due date with credit interest on payments through that date, using the calculation option producing the least interest. A charge applies when the difference exceeds CAD 25.
An early or excess payment can offset interest for the same tax year through non-refundable credit interest. Cancellation is not guaranteed. A separate instalment penalty can apply only if 2026 instalment-interest charges exceed CAD 1,000; that figure is not an automatic late-payment fine.
Pay using the method that fits the deadline
Check the date your chosen method counts as paid, not just when the transaction appears in My Account:
- Online banking: considered paid the same or next business day, depending on the institution. Select its CRA tax-instalment payee option; wording varies.
- CRA My Payment: accepts Visa Debit or Debit Mastercard, not credit cards. Usually dated the same business day; after 10 p.m. local time, on weekends or statutory holidays, the next business day applies, subject to bank variation.
- Bank or credit-union teller: bring a valid remittance voucher. The employee's date stamp establishes the payment date.
Setting up a new pre-authorized debit requires at least five business days before the first withdrawal, so it cannot solve a last-minute September 15 payment.
Keep proof. The CRA's confirmation guidance says to allow three business days before checking an online payment, or ten for a cheque or money order. Those account-processing waits do not extend the deadline.
Plan future withholding through payroll
If you are employed, you can ask for more income tax to be deducted by completing revised TD1 forms. That can help manage a future tax balance through your paycheques. It does not retroactively fix a missed instalment or automatically remove an existing payment obligation; check the current-year threshold, reminder and calculation rules above.
Frequently asked questions
I received a reminder, but my income fell. Must I pay it?
If your income changed, use the CRA’s calculation options to check your 2026 estimate and payment schedule. A low estimate can lead to interest.
I missed September 15. Should I wait until December?
Check the missing amount and an available payment method promptly. Daily compounding makes timing matter; the CRA's credit-interest calculation also takes payment dates into account. Do not assume catching up in December erases earlier interest.
Can I change or skip the December amount?
Use your chosen method, reminder and timing rules. Paying an annual total at any time does not automatically prove the schedule was satisfied; current-year facts may support a different calculation.
Related reading
- Using TFSA savings to cover a bill? Check withdrawal and recontribution timing before replacing the money.
- Reworking the household budget? Understand what lower grocery inflation does to prices.
This article provides general information, not personal tax advice. Check your CRA reminder, calculation method and account before acting.
Drafted with AI assistance from the credited sources and source-checked by AI before publication. No human factual review is claimed.
Drafted with AI assistance from the credited sources and source-checked by AI before publication. No human factual review is claimed. Material sources are credited and linked above; quotations are brief and attributed.