---
title: "Tax Instalment Threshold Rises to $7,500 From 2028"
url: https://www.everstonecpa.com/tax-update/instalment-threshold-7500
description: "Budget 2026 raises the tax owing before CRA instalments apply from $3,000 to $7,500, for individuals and corporations, from 2028. Check if you qualify."
type: tax-update
updated: 2026-11-06
summary: "Budget 2026 proposes raising the instalment threshold from $3,000 to $7,500 for individuals and corporations (from $1,800 to $4,500 for Quebec residents), indexed to inflation, for tax years starting in 2028. Self-employed people could instead pay a single instalment of two-thirds of the year’s tax by December 31. Until then the $3,000 threshold still applies."
faq_count: 3
publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta
service_area: British Columbia, Alberta, Ontario and Manitoba
language: en-CA
contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online
---

[Home](https://www.everstonecpa.com/) [Tax updates](https://www.everstonecpa.com/tax-updates) [Budget 2026](https://www.everstonecpa.com/tax-update/federal-budget-2026) Tax instalments

Tax payments

# Tax instalments: the threshold rises from $3,000 to $7,500

By EverStone CPA · Updated November 2026

Fewer people and companies will have to pay tax in advance. From 2028, instalments start only when more than $7,500 is owing, and the self-employed can pay once a year instead of four times.

**Quick answer:** Budget 2026 proposes raising the instalment threshold from $3,000 to $7,500 for individuals and corporations (from $1,800 to $4,500 for Quebec residents), indexed to inflation, for tax years starting in 2028. Self-employed people could instead pay a single instalment of two-thirds of the year’s tax by December 31. Until then the $3,000 threshold still applies.

**Not sure whether you owe instalments?** We work out your instalments each year with the personal and corporate returns, so the CRA never charges interest on them. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=personal#enquiry-form)

**Announced, not yet law** · Tax years beginning in 2028 (proposed)
This has been announced but is not yet law. It can change or be withdrawn.

## What an instalment is

An **instalment** is tax paid in advance during the year, instead of all at once when you file. Today the CRA expects instalments from individuals whose tax owing is more than $3,000 in the current year and either of the two previous years, and from corporations owing more than $3,000.

## What changes

Instalment thresholds before and after

| | Now | From 2028 (proposed) |

| Individuals and corporations | $3,000 | $7,500, indexed |

| Quebec residents | $1,800 | $4,500, indexed |

| Self-employed payment option | Quarterly | One payment of two-thirds of the year’s tax by December 31 |

## Example

Leah is a self-employed bookkeeper whose tax owing is about $6,000 a year. Today she pays four instalments. From 2028 she would pay none, because $6,000 is below $7,500. Her neighbour Sam owes $12,000 a year; from 2028 he could make one payment of $8,000 (two-thirds) by December 31 and pay the rest with his return.

**What to do.** Keep paying instalments as the CRA asks for 2026 and 2027. Interest on missed instalments still applies until the new rule takes effect.

Whether this applies to you depends on your year-end and structure; [ask about your own situation](https://www.everstonecpa.com/quick-question) and a CPA replies by email, usually the same business day, free.

## Common questions

**When does the $7,500 instalment threshold start?**

For tax years beginning in 2028, if enacted.

**Does it apply to corporations?**

Yes. Corporations and individuals both move from $3,000 to $7,500.

**Do I still pay instalments in 2027?**

Yes, under the current $3,000 rule.

## Where this comes from

Budget 2026 was tabled on 5 November 2026. Figures on this page are from:

- [BLG — Federal Budget 2026: tax measures](https://www.blg.com/en/insights/2026/11/federal-budget-2026-sovereignty-strategic-investment-and-tax-simplification)

- [RBC Wealth Management — Federal budget 2026 overview](https://www.rbcwealthmanagement.com/en-ca/insights/federal-budget-2026-an-overview-of-key-measures-that-may-impact-you)

- [Thor — 2026 Federal Budget: key tax measures](https://www.thor.ca/blog/2026/11/2026-federal-budget-key-tax-measures/)

**General information, not tax advice.** Budget measures are proposals until enacted and can change. Before deciding anything, [send an enquiry](https://www.everstonecpa.com/book-online?service=personal#enquiry-form).

[Federal Budget 2026: what changes for small business owners](https://www.everstonecpa.com/tax-update/federal-budget-2026)
[The personal tax deadline moves to May 15](https://www.everstonecpa.com/tax-update/t1-deadline-may-15)
[CRA penalties are going up: what Budget 2026 proposes](https://www.everstonecpa.com/tax-update/cra-penalties-increase)

---
Source: https://www.everstonecpa.com/tax-update/instalment-threshold-7500
Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online