Why is CRA asking for instalments when I already paid my taxes?

Paying last year’s tax bill does not necessarily settle this year’s instalments. A CRA instalment reminder can concern advance payments toward the current year, even when your previous balance is zero. Before dismissing it or paying an amount you do not understand, check the year, your expected tax owing and the calculation options.

Arsen Accounting Services · CRA sources checked October 26, 2026. This guide covers individual income-tax instalments, including sole proprietors; corporate and GST/HST instalments have separate rules.

Why did I receive a reminder?

Instalments can apply when not enough tax is withheld from income, including self-employment, rental income and investments. For 2026, an Ontario resident generally has to pay instalments when net tax owing exceeds $3,000 in 2026 and exceeded $3,000 in either 2025 or 2024. CRA uses a $1,800 threshold for Quebec residents. These are net-tax thresholds, not sales or business-profit thresholds. Check CRA’s rules on who must pay.

What if my income is lower this year?

A reminder is a reason to review the figures, not proof that last year’s circumstances will repeat. CRA provides three calculation options: the amount on its reminder, a prior-year calculation and a current-year estimate. A different option may change what you need to pay, but an estimate that is too low can result in instalment interest and possibly penalties. Review CRA’s calculation options before reducing a payment.

What should I check before December?

As of October 26, the next ordinary quarterly instalment date is December 15, 2026. Special rules apply to some situations, including farmers and fishers. Confirm the applicable CRA instalment due dates.

• Read the reminder and identify the tax year and payment dates.
• Gather your latest returns and assessments, plus payments already made.
• Prepare current income and expense summaries; flag changes in work, rental income or investments.
• Keep proof of payment and check which year and account received it.

For your preparation file, use our self-employed document checklist. If income comes from several activities, mention each one when discussing the scope.

Common questions

Am I paying the same tax twice?

Instalments are payments toward the relevant year’s tax. They are claimed on the return, rather than treated as a business expense. Keep your payment records so the amounts can be reconciled. See CRA’s guidance on claiming instalments.

Can I ignore the reminder if I expect to owe less?

Check the calculation first. CRA says that if your 2026 net tax owing is $3,000 or less ($1,800 or less for Quebec), you do not have to pay individual income-tax instalments for 2026, even if you received a reminder. Expected sales alone do not establish that result.

Bring the reminder into your tax-preparation discussion

Arsen Accounting is based in Ontario and provides remote Canadian tax preparation. Start with your tax years, work arrangement and a brief description of the reminder. We can discuss self-employed and commission-income tax preparation or personal T1 preparation and confirm whether an instalment review belongs in the engagement.

See our pricing and scope conditions. Keep SINs, account numbers and tax documents for the sharing arrangements agreed after your initial inquiry.

Ask about tax preparation and an instalment reminder →

General information. The required payments and appropriate calculation depend on your circumstances and tax year.