As a real estate agent, your income doesn’t come with taxes automatically deducted like a traditional employee’s paycheque. While the flexibility of self-employment has many advantages, it also means you’re responsible for paying your own income taxes. For many real estate professionals, that includes making quarterly tax installments.

If you’ve received a notice from the Canada Revenue Agency (CRA) about installments, or you’re wondering whether you should be making them, here’s what you need to know.

What Are Quarterly Tax Installments?

Quarterly tax installments are periodic payments made to the CRA throughout the year instead of paying your entire tax bill when you file your annual return. These payments help spread out your tax obligation and reduce the likelihood of a large balance owing at tax time.

Installments generally become necessary once your tax balance reaches a certain threshold for consecutive years. If you’re required to make installment payments, the CRA will usually send you a reminder outlining the recommended payment amounts and due dates.

Why Realtors Often Need to Make Installments

Most real estate agents work as self-employed professionals or independent contractors. Because taxes aren’t withheld from commission income, it’s easy to underestimate how much you’ll owe at the end of the year.

Commission income can also fluctuate significantly from month to month. A few successful sales in one season can create a much larger tax liability than expected. Quarterly installments help you stay ahead of those obligations and avoid a large tax bill after filing your return.

How Much Should You Pay?

The amount depends on your previous tax returns and your expected income for the current year.

The CRA may provide suggested installment amounts based on your prior tax liability. However, if you expect your income to increase or decrease significantly, you may choose to calculate payments based on your estimated earnings for the current year.

This is where working with an accountant can be especially valuable. Overpaying installments can unnecessarily reduce your available cash flow, while underpaying could result in interest charges.

Tips for Staying Prepared

Managing quarterly tax installments becomes much easier with good financial habits.

Consider these best practices:

  • Set aside a percentage of every commission payment for taxes.
  • Keep accurate bookkeeping throughout the year.
  • Review your income regularly instead of waiting until tax season.
  • Meet with your accountant mid-year to estimate your tax liability.
  • Maintain a separate savings account dedicated to taxes.

These simple habits can make installment payments much more manageable.

Don’t Forget About HST

If you’re registered to collect HST, remember that HST remittances are separate from your personal income tax obligations. Both should be tracked carefully to avoid unexpected balances owing.

Keeping organized financial records throughout the year makes it much easier to manage both responsibilities.

Work With an Accountant Who Understands Real Estate

Every realtor’s financial situation is different. Income can vary from year to year, deductions may change, and installment requirements aren’t always straightforward.

An accountant who specializes in working with Ontario real estate professionals can help you estimate your taxes accurately, calculate appropriate installment payments, and ensure you’re meeting your obligations while maximizing available deductions.

Quarterly tax installments may seem intimidating at first, but they’re simply a way to spread your tax payments throughout the year. With proper bookkeeping, regular financial reviews, and professional guidance, you can avoid surprises and stay focused on growing your real estate business.

If you’re unsure whether you’re required to make quarterly tax installments—or want help planning for them—our team is here to help you stay organized, compliant, and financially confident all year long.