Tax Instalments in Québec 2026: Who Pays and When

Short answer If you live in Québec, you generally have to pay income tax instalments when your net tax owing is more than $1,800 this year and was more than $1,800 in either of the two previous years. The test applies separately to the CRA and to Revenu Québec, and each gets its own payments on March 15, June 15, September 15 and December 15. Corporations pay monthly, or quarterly if they are eligible small CCPCs, once their tax exceeds $3,000. Annual GST/QST filers pay quarterly instalments when net tax reaches $3,000.

Tax instalments are the payments you make during the year when nobody withholds enough tax from your income. Self-employed people, landlords, investors, retirees and owner-managers run into them sooner or later, usually the year after a good year. In Québec the rules have a twist: you deal with two tax authorities, each with its own threshold test, its own reminders and its own payments. This guide covers who has to pay, how to calculate the amounts, the 2026 and 2027 dates, what late payment costs, and how instalments work for corporations and for GST/QST. Figures were checked against the CRA and Revenu Québec on November 9, 2026.

Do I need to pay tax instalments in Québec?

You generally have to pay instalments if both of these are true:

your net tax owing for the current year will be more than $1,800; and
your net tax owing was more than $1,800 in either of the two previous years.

The CRA uses $1,800 for Québec residents and $3,000 for residents of every other province and territory. The province where you live on December 31 decides which threshold applies. Revenu Québec applies the same $1,800 test to Québec tax.

The two tests are separate. You can owe federal instalments and not Québec instalments, or the reverse. Many self-employed Quebecers owe more to Revenu Québec than to the CRA, because Québec instalments also cover QPP and QPIP contributions.

A quick way to think about it: if you had a balance owing of more than $1,800 when you filed last spring, and this year looks similar, expect instalments.

What counts in "net tax owing"?

Net tax owing is roughly the tax for the year minus the tax withheld at source and your refundable credits. What it includes differs by agency.

Included in the calculation	CRA (federal)	Revenu Québec
Income tax	Federal tax, net of federal withholdings	Québec tax, net of Québec withholdings (line 451) and refundable credits
Pension contributions	CPP contributions (not relevant for most Québec residents, who contribute to the QPP)	Québec Pension Plan contribution on self-employment income
Parental insurance	Voluntary EI premiums, if you opted into EI special benefits	Québec Parental Insurance Plan premium
Other	None	Health services fund contribution and the Québec prescription drug insurance plan premium

Revenu Québec also tells you to leave out a few items when testing the threshold, such as the QST rebate for employees and partners and pension income splitting between spouses.

Do I pay instalments in my first year in business?

Usually not, because the test looks back at the two previous years. If you were an employee with full withholding last year, you generally fail the "previous years" condition. The catch comes later: in your first full year of self-employment you pay the whole year’s tax as a balance on April 30, and instalments often start the following year. Plan for both in the same 12 months. Our self-employed tax guide for Québec explains the full first-year picture.

When are tax instalments due?

For individuals, both agencies use the same four dates:

Instalment	2026	2027
First	March 15 (a Sunday, so the next business day counts as on time for the CRA)	Monday, March 15
Second	Monday, June 15	Tuesday, June 15
Third	Tuesday, September 15	Wednesday, September 15
Fourth	Tuesday, December 15	Wednesday, December 15

Farmers and fishers whose main income is self-employment from farming or fishing make one payment a year, due December 31. Both agencies send that reminder in November. Revenu Québec applies the farmer and fisher rule only when net tax was over $1,800 in both of the two preceding years.

Instalments are separate from your April 30 balance-due date. Even with instalments, any remaining balance for the year is still due April 30 of the following year, and self-employed people still file by June 15. See our Québec and Canada tax deadline calendar for every other date.

How are instalments calculated? The three methods

You can choose the method that gives you the lowest required payments. Both agencies offer the same three, with slightly different names.

Method	How it works	Best when	Risk
No-calculation (CRA) / Method 1 (Revenu Québec)	You pay the amounts on the reminders. The March and June payments are each one quarter of your net tax from two years ago. The September and December payments split what is left of last year’s net tax.	Your income is stable, or it is rising	None if you pay the reminder amounts on time: no instalment interest, even if your tax turns out higher
Prior-year / Method 2	Four equal payments of one quarter of last year’s net tax owing	Last year is a better guide than two years ago	Low, as long as you calculate last year’s figure correctly
Current-year / Method 3	Four equal payments of one quarter of your estimate for this year	Your income is dropping, for example after a slow year, a sale or retirement	If your estimate is too low, you pay interest on the shortfall

The CRA’s 2026 calculation chart and Revenu Québec’s form TP-1026-V help with the prior-year and current-year methods. If you pay according to one method and owe less under another, the CRA calculates interest using the option that results in the least interest.

A practical rule we use with clients: follow the reminder amounts unless you have a clear, documented reason to expect a lower year. The current-year method is useful, but only with reliable bookkeeping behind the estimate.

Worked example: a self-employed consultant in Montréal

Amira is a self-employed consultant who lives in Montréal. Her net tax owing, after withholdings, was:

Year	Federal (CRA)	Québec (Revenu Québec, including QPP and QPIP)
2025	$5,600	$8,000
2026	$6,800	$9,600
2027 (expected)	about $7,000	about $10,000

She is above $1,800 with both agencies in 2027 and in at least one of the two previous years, so she pays instalments to both for 2027.

Prior-year method: federal $6,800 ÷ 4 = $1,700 per instalment; Québec $9,600 ÷ 4 = $2,400 per instalment.
No-calculation method (reminders): federal March and June = $5,600 ÷ 4 = $1,400 each; September and December = ($6,800 − $2,800) ÷ 2 = $2,000 each. The total is the same $6,800, but more of it falls late in the year. Québec works the same way: $2,000 in March and June, then $2,800 in September and December.

Amira expects a higher 2027, so the reminder method suits her cash flow and protects her from instalment interest. Her extra 2027 tax is simply paid with her return by April 30, 2028. If instead she expected a much lower 2027, she could switch to the current-year method, but only with a solid estimate.

These are illustrative amounts. Your real numbers depend on your income, deductions and credits; our list of self-employed deductions in Québec can lower both.

How do I pay instalments to the CRA and Revenu Québec?

Pay each agency separately. A payment to one is never applied to the other.

	CRA	Revenu Québec
Reminder	Form INNS1, mailed or posted to My Account in February (March and June payments) and August (September and December payments)	Form TPZ-1026.A-V, sent in February and August
Online	Online banking, My Account or pre-authorized debit	Online banking using the payment code on your slip, or at a financial institution or ATM with the remittance slip
In person or by mail	Instalment remittance voucher (form INNS3)	Remittance slip at the bottom of TPZ-1026.A-V
Proof	Instalment summary (form INNS2) in February; check My Account after 3 business days for online payments	Instalment information in My Account; payment counts when received or processed by your bank
Large payments	Since January 1, 2024, payments over $10,000 generally must be made electronically	Since January 1, 2024, instalments over $10,000 must be paid electronically unless that is impossible

Two tips. First, if you get a Revenu Québec reminder only in August, it usually means your net tax went over $1,800 for the first time last year; you then owe only the September and December payments. Second, if you did not receive a reminder but you meet the test, you are still required to pay. Use TP-1026-V or the CRA chart to work it out.

What happens if I pay instalments late or not at all?

CRA instalment interest and penalty

The CRA charges instalment interest, compounded daily, at the prescribed rate on every late or short payment. From October 1 to December 31, 2026, that rate is 7%. The rate can change every quarter. The CRA bills instalment interest only when it is more than $25 for the year.

If your instalment interest for the year is more than $1,000, a penalty can apply. The CRA takes your instalment interest, subtracts the greater of $1,000 or 25% of the interest you would have owed had you made no instalments, and charges half of the difference.

You can reduce interest by paying the next instalment early or overpaying it. The credit interest you earn offsets instalment interest for the same year, but it is never refunded.

Revenu Québec interest and additional interest

Revenu Québec also charges daily compounded interest on late or insufficient instalments. Its rate is also 7% from October 1 to December 31, 2026. On top of that, if you paid less than 75% of a required instalment, it adds additional interest of 10% a year, compounded daily, on the unpaid portion. Interest and penalties are not deductible.

If you follow Revenu Québec’s Method 1 and pay the reminder amounts on time, no interest is charged even if they later prove insufficient. Methods 2 and 3 give no such protection.

Missed several years of instalments and returns? Our guide to late and unfiled tax returns in Canada explains how to catch up.

Corporate tax instalments in Québec: monthly or quarterly?

A corporation in Québec pays instalments to two governments: federal tax to the CRA, and Québec tax to Revenu Québec. The rules are close, but not identical.

Rule	CRA (federal)	Revenu Québec
Threshold	No instalments if federal tax for the current year or the previous year is $3,000 or less	Instalments required if tax (and capital tax) for both the current year and the previous year exceeds $3,000
New corporations	No instalments until the second tax year	Generally none in the first year, since the previous-year test is not met
Default frequency	Monthly, on the last day of each complete month of the tax year	Monthly, on the last day of each month
Quarterly option	Eligible small CCPCs: SBD claimed this year or last; taxable income of $500,000 or less and taxable capital of $10 million or less (with associated corporations); perfect compliance history over the last 12 months	CCPCs with taxable income of $500,000 or less and paid-up capital of $10 million or less (with associated corporations), qualifying business income, and tax obligations met over the last 12 months
Calculation options	Current-year estimate, previous year, or a combination of the two previous years	Form CO-1027, Method A or Method B (also based on the current year and the two previous years)
Reminders	None. The CRA does not send corporate instalment reminders	None. You calculate your own
Balance due	Two months after year-end, or three months for many CCPCs that claimed the SBD	Two months after year-end
Late instalments	Instalment interest; penalty when interest exceeds $1,000 (same formula as individuals)	Interest, plus additional interest of 10% a year unless a payment of at least 90% of the amount due was made

The balance-due date catches many owner-managers. The federal three-month delay for eligible CCPCs does not exist in Québec. For a December 31 year-end, the Québec balance is due at the end of February, while the federal balance may be due at the end of March.

Corporate returns themselves (T2 and CO-17) are due six months after year-end, but the tax is due earlier. Our salary versus dividends guide shows how your pay mix changes what the corporation owes.

Worked example: a small corporation with quarterly instalments

Atelier Nord inc. is a Montréal CCPC with a December 31 year-end. It claimed the small business deduction, its taxable income is well under $500,000, and it has filed and paid everything on time for the past year. Its tax was:

Tax year	Federal tax	Québec tax
2026	$14,400	$9,600
2027 (expected)	about $16,000	about $10,500

Both are above $3,000, so it pays instalments for 2027. It qualifies for quarterly payments with both agencies. Using the previous-year option:

CRA: $14,400 ÷ 4 = $3,600 on March 31, June 30, September 30 and December 31, 2027.
Revenu Québec: $9,600 ÷ 4 = $2,400 on the same four dates.
Balances: the remaining Québec tax is due by the end of February 2028; the remaining federal tax is due by March 31, 2028, if the corporation still meets the three-month conditions.

If the corporation missed a GST/QST or payroll remittance during the year, it could lose quarterly eligibility and have to switch to monthly payments after the current quarter. Clean, on-time filings protect the quarterly option. See our Québec payroll checklist for remittance deadlines.

Do I have to pay GST/QST instalments?

Only if you file your GST/QST returns annually. Monthly and quarterly filers simply remit with each return. For annual filers, Revenu Québec, which administers both taxes in Québec, requires four quarterly instalments when net tax is $3,000 or more both for the current year and for the previous year. You do not have to make instalments if either year is under $3,000.

The test applies to each tax separately. Because the QST rate (9.975%) is about double the GST rate (5%), you can owe QST instalments without owing GST instalments. In that case, ask Revenu Québec for form VDZ-458.0.1-V.
Instalments are due one month after the end of each quarter of your fiscal year. For a December 31 year-end: April 30, July 31, October 31 and January 31.
Forms VDZ-458.0.2-V (QST) and FPZ-558.C-V (GST and QST) help calculate the amounts. In practice, most annual filers base each instalment on one quarter of the previous year’s net tax.
The annual return then reconciles your instalments with the actual net tax. An individual with business income and a December 31 year-end files by June 15 but must remit by April 30.
Payments of $10,000 or more must be made electronically.

Example: a home renovation contractor files annually. Last year his net GST was $2,400 and his net QST was $4,800, and this year looks the same. He owes QST instalments of about $1,200 each quarter, but no GST instalments. For more on registration and filing frequencies, read our GST/QST guide for small businesses.

Instalment decision table

Your situation	Federal instalments?	Québec instalments?	What to do
Employee with full withholding, small side income	Usually no	Usually no	Raise withholding with a TD1 or TP-1015.3 if you owe each spring
First full year of self-employment	Usually no	Usually no	Set aside tax monthly; expect a large April 30 balance and instalments the next year
Self-employed, owed over $1,800 to both last year	Yes	Yes	Pay the reminder amounts, or the prior-year amounts
Owe over $1,800 to Revenu Québec only (QPP and QPIP push it up)	No	Yes	Pay Revenu Québec only; check the federal test each year
Income dropping sharply this year	Maybe	Maybe	Consider the current-year method with reliable figures
Retiree with RRIF or pension income and little withholding	Often yes	Often yes	Ask the payer to withhold more tax to reduce or eliminate instalments
Farmer or fisher (main income)	One payment	One payment	Pay by December 31
Corporation in its first year	No	No	Pay the balance by the balance-due date
Corporation, tax over $3,000, eligible small CCPC	Quarterly	Quarterly	Keep every filing and remittance on time to stay eligible
Annual GST/QST filer, net tax $3,000 or more in both years	Not income tax: quarterly GST instalments to Revenu Québec if net GST qualifies	Quarterly QST instalments if net QST qualifies	Test each tax separately

How to make instalments painless

Use a tax account. Move a fixed share of every client payment into a separate savings account. The right percentage depends on your income; we can calculate it with you.
Keep your books monthly. The current-year method only works if you know your profit. Monthly bookkeeping makes the estimate reliable.
Calendar all eight dates. Four federal and four Québec payments, plus GST/QST if you are an annual filer.
Review in the fall. A September check lets you adjust the December payment. Our year-end tax planning guide lists other moves to make before December 31.
Consider incorporating at the right time. A corporation changes how and when tax is paid. Read should you incorporate in Québec.

How we can help

We calculate federal and Québec instalments for self-employed clients and corporations, set up payment calendars and flag when a lower current-year estimate makes sense. A tax professional reviews every return. Personal returns start at $300 (personal tax returns), corporate returns from $1,200 a year (tax preparation), and bookkeeping plans cost $350, $650 (GST/QST filing included) or $1,100 a month. See pricing, or contact us with your last two notices of assessment and we will tell you what you owe and when. Starting out? Read our checklist for starting a business in Québec, and if you hire help, our guide to employee or independent contractor status in Québec.

Frequently asked questions

What is the tax instalment threshold in Québec?

For Québec residents it is $1,800 of net tax owing, with both the CRA and Revenu Québec. You generally pay instalments when you expect more than $1,800 this year and owed more than $1,800 in either of the two previous years. Outside Québec, the federal threshold is $3,000.

When are quarterly tax instalments due in 2027?

For individuals: March 15, June 15, September 15 and December 15, 2027, for both the CRA and Revenu Québec. Farmers and fishers make a single payment by December 31.

Do I have to pay instalments if I did not get a reminder?

Yes, if you meet the conditions. The reminder is a courtesy. If you did not get one, use the CRA calculation chart or Revenu Québec form TP-1026-V to check whether you owe instalments and how much.

What happens if I miss a tax instalment?

Both agencies charge daily compounded interest on the late amount, 7% from October to December 2026. The CRA adds a penalty when instalment interest exceeds $1,000. Revenu Québec adds 10% a year of extra interest if you paid less than 75% of the required instalment. Paying the next instalment early reduces federal interest.

Does QPP count toward Québec instalments?

Yes. Revenu Québec instalments cover your Québec income tax plus, where applicable, your QPP contribution, QPIP premium, health services fund contribution and prescription drug insurance premium. That is why self-employed people often owe Québec instalments before federal ones.

Can a small corporation pay instalments quarterly?

Yes, if it is an eligible small CCPC: it claimed the small business deduction, has taxable income of $500,000 or less and capital of $10 million or less with associated corporations, and has filed and paid on time for the past 12 months. Otherwise it pays monthly.

Do I pay GST/QST instalments?

Only if you file annually and your net GST or net QST is $3,000 or more for both the current and previous year. Each tax is tested separately, so many annual filers owe QST instalments but not GST instalments. They are due one month after each quarter of your fiscal year.

Can you calculate my instalments?

Yes. Send us your last two federal and Québec notices of assessment, or your corporation’s last returns, and we will confirm whether you owe instalments, which method costs least and the exact payment calendar.

Tax Instalments in Québec (2026): Who Pays, When and How Much