How to Pay Your Income Tax in Canada: A Simple Step-by-Step Guide

Filing your tax return is one thing. Actually paying what you owe is another. If you have filed your return and discovered you owe money to the Canada Revenue Agency (CRA), your next step is to figure out how to send that payment.

This guide walks you through every way you can pay your income tax in Canada, when you need to pay by, and what to do if you are struggling to pay the full amount.

Do You Need to Pay Income Tax?

Most Canadians have taxes withheld automatically through payroll. However, you may still owe a balance if:

You are self-employed or have business income
You have investment income or capital gains
You sold a property and realized a capital gain
You received rental income during the year
Your employer did not withhold enough tax
You received CERB, EI, or other government benefits without sufficient withholding

Once you file your return, the CRA will calculate your balance owing. If there is a balance, you are responsible for paying it by the deadline.

How Does the CRA Know How Much You Owe?

When you file your T1 General return, the CRA processes your income, deductions, and credits to calculate your net tax payable. If your total tax payable exceeds what you already paid through withholdings or instalments, the difference is your balance owing.

The CRA sends a Notice of Assessment (NOA) confirming your final balance. If you owe money, the NOA will state the amount due and the payment deadline.

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When Do You Need to Pay?

For most Canadians, the income tax payment deadline is April 30 of the following year. Even if you are self-employed and your filing deadline is June 15, any balance owing is still due by April 30.

If April 30 falls on a weekend, the CRA typically extends the deadline to the next business day.

Taxpayer Type	Filing Deadline	Payment Deadline
Employed individuals	April 30	April 30
Self-employed individuals	June 15	April 30
Deceased taxpayer (died Jan 1 – Oct 31)	April 30	April 30

How to Pay Your Income Tax: All the Methods

1. Online Banking

This is the most common method for Canadians. Log into your online banking, go to the bill payment section, and add the CRA as a payee. Use your Social Insurance Number (SIN) as the account number.

Available through all major Canadian banks
Payments are processed within 1–3 business days
Recommended for most individuals

2. CRA My Payment

CRA My Payment is an online service on the CRA website that allows you to pay directly using a Visa Debit or Interac Online card. Credit cards are not accepted through this service.

Go to Canada.ca and search for “CRA My Payment”
Select the correct payment type (Personal Income Tax)
Use your SIN and the tax year
Pay instantly using your debit card

3. Pre-Authorized Debit (PAD)

Through your CRA My Account, you can set up Pre-Authorized Debit to schedule automatic payments directly from your bank account. This is useful if you want to avoid missing the deadline or if you prefer to spread payments over time.

4. In-Person at a Financial Institution or Canada Post

You can pay your income tax in person at most Canadian banks, credit unions, and Canada Post locations. Bring your remittance voucher (from CRA My Account or your NOA) so the payment is applied to the correct account.

5. Cheque or Money Order

You can mail a cheque or money order payable to the Receiver General of Canada. Write your SIN and the tax year on the back of the cheque. Mail it to your CRA tax centre.

Note: Allow extra time for mail delivery. The CRA considers the payment received on the date it is postmarked, but it is safer to mail well before the deadline.

What Happens If You Pay Late?

If you miss the April 30 deadline, the CRA charges interest on the unpaid balance starting May 1. The interest rate is set quarterly and is compounded daily.

Late-payment interest accrues daily on any unpaid amount
Interest cannot be reduced or waived unless you apply under the CRA’s taxpayer relief provisions
A late-filing penalty may also apply if you have not yet filed your return

Filing on time — even if you cannot pay — avoids the late-filing penalty. The interest on the unpaid balance is separate from the filing penalty.

What If You Cannot Pay the Full Amount?

If you cannot pay what you owe by April 30, you still have options:

Pay as much as you can by the deadline to reduce the interest that accumulates
Contact the CRA to discuss a payment arrangement — they may allow you to pay in installments
Apply for taxpayer relief if you are experiencing significant financial hardship, natural disaster, or a serious illness

The CRA would rather work with you than have the debt go unpaid. Do not ignore the balance — contact them proactively.

How to Pay Income Tax If You Are Self-Employed

Self-employed Canadians do not have taxes withheld at source, which means they are responsible for paying their entire tax bill themselves. This also means a larger lump sum is often due by April 30.

To avoid a large year-end payment, the CRA may require self-employed individuals with a net tax owing of more than $3,000 (in the current or previous two years) to pay tax in quarterly instalments:

March 15
June 15
September 15
December 15

Instalments reduce the risk of a large payment shock at tax time and help avoid instalment interest charges.

How to Pay If You Owe a Large Amount

If you owe a significant amount, consider these strategies:

Set up a CRA payment arrangement to pay over several months
Use a line of credit to pay the CRA and repay the bank at a lower interest rate than the CRA charges
Work with a tax professional to identify any missed deductions or credits that could reduce the amount owed

Can You Pay Income Tax in Installments?

Yes. If the CRA determines that you are required to pay quarterly instalments, they will send you an instalment reminder in February and August each year. You can use the amounts suggested by the CRA or calculate your own based on your estimated income.

Even if you are not required to pay instalments, you can choose to do so voluntarily to manage your cash flow throughout the year.

Need Help Paying Your Taxes? Talk to Taxccount

Taxccount helps individuals, self-employed professionals, and corporations across Canada manage their CRA obligations with confidence. Whether you owe a balance, need to set up instalments, or want to make sure you are not missing any deductions — we are here to help. Book a free consultation with Taxccount today.

Table of Summary

Here is the blog information in 6 easy rows:

Section	Easy Information
1. Topic	The blog explains how to pay income tax in Canada after filing your tax return.
2. Who May Owe Tax	You may owe CRA if you are self-employed, have business income, investment income, rental income, capital gains, or not enough tax was deducted from your pay.
3. Payment Deadline	For most Canadians, tax owing must be paid by April 30. Self-employed people may file by June 15, but payment is still due by April 30.
4. Ways to Pay CRA	You can pay by online banking, CRA My Payment, pre-authorized debit, in person at a bank/Canada Post, or by cheque/money order.
5. If You Pay Late	CRA charges daily compound interest after the deadline. If you also file late, a separate late-filing penalty may apply.
6. Simple Summary	File your return, check your CRA balance, pay by April 30, and contact CRA early if you need a payment arrangement.

Frequently Asked Questions

Can I pay my income tax with a credit card in Canada?

The CRA does not directly accept credit card payments. However, you can use a third-party service like PaySimply to pay with a credit card, though fees apply.

How long does it take for a CRA payment to process?

Online banking payments typically take 1–3 business days to process. CRA My Payment (Interac/Visa Debit) is processed faster. Mail payments depend on Canada Post delivery times.

What happens if I overpay the CRA?

If you overpay, the CRA will issue a refund. You can request the refund be deposited directly to your bank account by registering for direct deposit through CRA My Account.

Can I split my payment into multiple transactions?

Yes. You can make multiple payments as long as the total amount owing is received by the deadline. Just ensure each payment references your SIN and the applicable tax year.

Is there a penalty for not paying on time?

Yes. The CRA charges daily compound interest on any unpaid balance after April 30. If you also filed late, a separate late-filing penalty applies on top of the interest.

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