How to Pay Taxes in Canada: Every Method Explained Simply

Once you have filed your tax return and discovered you owe money to the Canada Revenue Agency (CRA), the next step is making the actual payment. This is something many Canadians are unsure about, especially when they are not sure which method to use or what happens if they miss the deadline.

This guide explains every available way to pay your taxes in Canada, when payments need to be made, and what to do if you cannot pay the full amount right away.

Why Paying Your Taxes on Time Matters

The CRA expects your tax balance to be paid by April 30 for most individuals. If you miss this deadline:

• Interest on unpaid taxes begins compounding daily starting May 1
• A late-filing penalty of five percent of the balance owing applies if you also filed your return late, plus one percent for each full month the return is late (up to 12 months)
• Continued non-payment can trigger CRA collections activity, including wage garnishment and bank account freezes

Filing your return on time, even if you cannot pay, at least avoids the late-filing penalty. The interest on the unpaid amount is a separate issue from the filing penalty.

How to Pay Using Online Banking

Online banking is the most popular way Canadians pay their taxes. Here is how it works:

• Log in to your bank’s online or mobile banking platform
• Navigate to bill payments and search for a payee that includes “CRA” (e.g., “CRA (Revenue) Personal Tax – Current-Year Tax” or “CRA Personal Income Tax”)
• Enter your Social Insurance Number (SIN) as the account number
• Enter the amount and schedule the payment

Payments made through online banking typically reach the CRA within two to three business days. Make sure to initiate the payment a few days before the deadline to ensure it arrives on time.

How to Pay Using CRA My Payment

CRA My Payment is an online payment service available on the CRA website. It accepts:

• Visa Debit
• Debit Mastercard
• Interac Online

Note: CRA My Payment does not accept credit cards. Payments go directly to the CRA and are usually posted faster than standard online banking transfers.

To use CRA My Payment, go to Canada.ca and search for “CRA My Payment.” Select the appropriate payment type (Personal Income Tax), enter your SIN, and follow the prompts to complete the payment.

How to Set Up Pre-Authorized Debit

Pre-Authorized Debit (PAD) lets you schedule payments directly from your bank account through CRA My Account. You can set up one-time or recurring payments and choose the date you want the CRA to withdraw the funds.

This option is useful for people who want to plan ahead or spread payments across multiple dates. The withdrawal happens automatically, so you do not need to remember to make the payment manually.

How to Pay In Person

You can pay your taxes in person at most major Canadian banks, credit unions, and Canada Post locations. To pay in person, you will need a remittance voucher from the CRA. You can get this through CRA My Account or it may be included with your Notice of Assessment.

In-person payments are typically posted to your account within five business days.

How to Pay by Mail

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

Important: The CRA must receive your payment by the deadline, not just have it postmarked. Allow sufficient time for mail delivery, especially if you are sending it close to the deadline.

How to Pay If You Are Self-Employed

Self-employed Canadians have a later filing deadline of June 15, but the payment deadline is still April 30. If you owe taxes and do not pay by April 30, interest will begin accumulating even if you have not yet filed your return.

If you owe more than $3,000 in net federal taxes in the current or either of the two previous years, the CRA may require you to pay quarterly tax instalments:

• March 15
• June 15
• September 15
• December 15

What to Do If You Cannot Pay in Full

If you cannot pay the full amount by the deadline, take the following steps:

• File your return on time anyway to avoid the late-filing penalty
• Pay as much as you can to reduce the interest that will accumulate on the remaining balance
• Contact the CRA to discuss a payment arrangement — they may allow you to pay in instalments
• Apply for taxpayer relief if you are experiencing serious financial hardship, illness, or another extraordinary circumstance

How to Confirm Your Payment Was Received

After making a payment, you can confirm it was received by logging into CRA My Account and checking your account balance. Payments may take a few business days to appear. If you paid by mail, allow additional processing time.

If you see a discrepancy, contact the CRA directly with your payment details (date, amount, method) to resolve it.

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Need Help with Your Tax Payment? Talk to Taxccount

Taxccount helps individuals, self-employed Canadians, and corporations manage their CRA obligations with confidence. Whether you need help understanding your payment options, setting up instalments, or managing a tax debt, our team is 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 taxes owed to CRA in Canada after filing a tax return.
2. Payment Deadline	Most individuals must pay their CRA balance by April 30. If unpaid, interest starts from May 1.
3. Main Payment Methods	Canadians can pay using online banking, CRA My Payment, Pre-Authorized Debit, in person, or by cheque/money order.
4. Self-Employed Rule	Self-employed people can file by June 15, but any balance owing must still be paid by April 30.
5. If You Cannot Pay	File on time, pay as much as possible, contact CRA for a payment arrangement, or apply for taxpayer relief if eligible.
6. Simple Summary	Pay your CRA tax balance by April 30 using a CRA-approved method, and if you cannot pay fully, contact CRA early to arrange instalments.

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Frequently Asked Questions

Can I pay my CRA taxes with a credit card?

The CRA does not directly accept credit card payments. You can use a third-party service such as PaySimply to pay by credit card, but a convenience fee applies. Alternatively, some Canadians use a line of credit or loan to pay the CRA and then repay the lender at a potentially lower interest rate.

How long does it take for a CRA payment to show in my account?

Online banking payments typically take two to three business days. CRA My Payment (via Visa Debit or Interac) is processed faster. In-person payments may take up to five business days. Mail payments depend on delivery time plus CRA processing.

What if I pay more than I owe?

If you overpay, the CRA will apply the excess to any other amounts you owe or issue a refund. You can speed up the refund process by signing up for direct deposit through CRA My Account.

Is there a minimum amount I need to pay to avoid interest?

You must pay the full balance owing by April 30 to avoid interest. There is no partial payment threshold — interest accrues daily on any unpaid balance starting May 1, even if you have paid most of what you owe.

This is general information only and not professional advice. Consult a professional before acting.