Have You Missed Your Personal Tax Instalment? Dealing with taxes can be stressful. There are occasions where the Canada Revenue Agency (CRA) requires your taxes to be prepaid in instalments. A tax instalment is a prepayment of your expected income tax to the CRA. This way, you avoid a big lump-sum bill and potential interest or penalties. If you're required to pay, the CRA will send you reminders, so make sure to check your My Account online!
A missed personal tax instalment payment can feel like a small slip, but the effects can spread through your money. For many people and small business owners, tax instalments are a key part of handling their tax duties all year long. Not making these payments on time can bring unwanted penalties and extra charges. These additions can greatly increase the amount you owe.
Knowing all about tax instalment payments, why we need them, and what occurs when they are missed is super important. It helps keep your money healthy and stops needless worry. This article will make the whole process clear. It will show the possible bad results and offer simple steps to fix things.
Who Needs to Pay Tax Instalments?
You must pay instalments in 2025 if both of these apply:
- Your net tax owing is more than $3,000 (or $1,800 if you live in Quebec).
- You met the same threshold in either 2023 or 2024.
If these apply, CRA will send you instalment reminders—one in February (covering March and June payments) and another in August (for September and December).
Instalment Deadlines for 2025
For most taxpayers, 2025 instalment payments are due on:
- March 15
- June 15
- September 15
- December 15
If a due date lands on a weekend or statutory holiday, CRA treats payments as on time if received by the next business day.
What to Do If You've Missed Your Tax Instalment
Finding out you missed a tax instalment can feel bad, but it is not the end of the world. The best thing you can do is take quick, clear steps to fix the situation. The sooner you act, the better off you will be.
Act Quickly: Pay the Arrears Immediately: The very first thing you should do is pay the outstanding amount as soon as you can. Every day that passes means more interest and possibly higher penalties. Getting that payment in quickly will stop the charges from growing. Do not wait for a bill or a letter from the CRA. Just pay what you owe.
Contact Your CRA: Once you have paid (or are about to pay), consider reaching out to CRA. Be honest about what happened. CRA is often willing to work with taxpayers who are trying to resolve their debts.
You might be able to set up a payment arrangement if you cannot pay the full amount right away. In some cases, if it is your first time missing a payment, they might even waive some penalties. Being upfront and showing you want to fix it can go a long way.
Review and Adjust Future Payments: After dealing with the missed payment, take time to look at your money situation again. Check your income and expenses to make sure you can easily meet upcoming tax instalment payments. If your income has changed, you might need to adjust your payment amounts.
Consider talking to a tax professional. They can help you calculate the right amounts for future instalments. This will help you stay on track and avoid any more missed payments. Planning is vital.
How to Make Your Payments (and Avoid Penalties)
- Convenient options: Pay online, by mail, or in person using the instalment remittance voucher (INNS3) from your reminder.
- Keep proof: It may take a few days for payments to show in CRA My Account (3 days for online, 10 days by cheque). Then confirm via My Account or wait for your instalment summary (INNS2) in February.
- Late or insufficient payments: You’ll face instalment interest and penalties. CRA won’t waive them unless the full amount is paid on time and calculated correctly.
Common Reasons for Missing an Instalment
Life gets busy, and sometimes a tax payment can slip your mind. There are many reasons why someone might miss an instalment. Understanding these reasons can help prevent future mistakes.
- Cash Flow Issues and Financial Hardship: Unexpected costs can really mess up your money plans. A sudden business expense, a car repair, or a personal emergency can leave you short on cash.
- Lack of Awareness or Misunderstanding: Many people simply do not realize they need to pay tax instalments. They might think all their taxes are due once a year. Others might not correctly figure out how much they need to pay or misunderstand the payment dates.
- Administrative Errors: Even with good intentions, simple mistakes can happen. You might send the wrong payment amount, or mail your cheque to the wrong address. Forgetting to set up an automatic payment or missing a reminder email are common administrative errors. These small slip-ups can result in a missed payment.
Quick Tips to Stay Organized and Save Stress
- Set reminders for instalment due dates - your calendar is your friend.
- Use CRA My Account to check your reminders, payment status, and instalment history.
- Consider increasing tax withholding from your income via TD1 or Service Canada forms if your tax situation is changing.
- Talk to a tax professional if you need help estimating your tax liability or planning your instalments.
Bottom Line
Staying on top of your CRA personal tax instalments in 2025 will dramatically reduce your year-end stress. Whether you're new to instalments or a veteran payer, knowing when to pay, how much to budget, and ensuring payments are registered correctly can save you from penalties and interest.
Still worried you might have missed a due date, or unsure how much to pay? Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step toward proper management of your finances. We’ll help you create a personalized instalment strategy, ensure your CRA My Account is set up properly, and give you peace of mind heading toward tax season.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.