--- title: "Can You Pay Taxes with a Credit Card in Canada? Everything You Need to Know" id: "14838" type: "post" slug: "can-you-pay-taxes-with-credit-card-canada" published_at: "2026-05-15T11:27:22+00:00" modified_at: "2026-05-15T11:31:20+00:00" url: "https://taxccount.com/blog/can-you-pay-taxes-with-credit-card-canada/" markdown_url: "https://taxccount.com/blog/can-you-pay-taxes-with-credit-card-canada.md" excerpt: "You have done your taxes, filed your return, and now you owe money to the CRA. Your next question is: can you just pay this with a credit card – like you would pay a bill at Mastercard, Visa, or..." taxonomy_category: - "Taxccount" --- [Taxccount](https://taxccount.com/blog/category/taxccount/) [May 15, 2026](https://taxccount.com/blog/2026/05/) # Can You Pay Taxes with a Credit Card in Canada? Everything You Need to Know You have done your taxes, filed your return, and now you owe money to the CRA. Your next question is: can you just pay this with a credit card – like you would pay a bill at Mastercard, Visa, or American Express? The short version: the CRA does not directly accept credit card payments. But there are workarounds that some people use. This guide explains all of your options so you can choose the most sensible approach for your situation. Table of Contents [Toggle](#) ## Can You Pay Taxes with a Credit Card in Canada? Not directly. The Canada Revenue Agency (CRA) does not have a direct credit card payment option on its website or in its payment systems. The CRA accepts the following payment methods: - Online banking (through your bank or credit union) - Pre-authorized debit through CRA My Account - Debit card through the CRA’s My Payment portal - Bank draft or cheque made payable to the Receiver General - In person at Canada Post (cash, debit, or money order) - Wire transfer (for large amounts) Credit cards are notably absent from this list. ## Pay CRA Taxes Smartly [☎️ Get Help](https://taxccount.com/book-a-consultation/) ## Why Does the CRA Not Accept Credit Cards Directly? The main reason is cost. Credit card companies charge merchants a processing fee of roughly 1.5% to 3% of each transaction. For a government agency collecting billions of dollars in tax payments every year, those fees would add up to hundreds of millions of dollars annually. The CRA has chosen to stick with payment methods that have lower or no transaction fees. ## How to Pay CRA with a Credit Card (Indirectly) While the CRA does not accept credit cards directly, there are third-party services that allow you to pay almost any bill – including your CRA tax balance – using a credit card. These services charge you a fee, use your credit card to collect the funds, and then send a bank payment to the CRA on your behalf. The most well-known service in Canada that does this is **Plastiq**. The process works like this: - You create an account with the third-party service - Enter your CRA payment details (amount, business number or SIN, tax year) - Pay with your credit card - The service sends a bank payment to the CRA on your behalf - You pay a service fee of approximately 2% to 2.5% of the total amount Some people use this method specifically to earn credit card rewards points on large tax payments. ## What Are the Fees for Paying Taxes by Credit Card? If you use a third-party service to pay your CRA balance with a credit card, you can expect to pay approximately 2% to 2.5% of the total payment amount. Here is what that looks like in dollar terms: Tax OwingApproximate Fee (at 2.5%)$1,000$25$5,000$125$10,000$250$20,000$500These fees are paid directly to the third-party service, not the CRA. They are also **not tax deductible** for most personal filers. ## Is It Worth Paying Taxes with a Credit Card? ### When It Might Be Worth It - Your credit card earns rewards at a rate higher than the processing fee (for example, your card earns 3% back and the fee is 2%) - You need to meet a credit card spending threshold to qualify for a sign-up bonus - You have a short-term cash flow issue and need a few extra weeks before the credit card bill is due ### When It Is Probably Not Worth It - You cannot pay off the credit card balance in full – credit card interest rates (19%+ per year) will cost far more than CRA interest or payment arrangements - Your rewards rate is lower than the processing fee - You are using a cash-back card with a low return rate ## Other Ways to Pay Your Taxes in Canada If you would rather not pay a processing fee, here are the best direct options for paying your CRA balance: - **Online banking:** Log in to your bank and add the CRA as a payee. Use your SIN (for personal taxes) or business number as the account number. This is free and usually processes within 1–2 business days. - **CRA My Payment:** Use a Visa Debit, Mastercard Debit, or Interac Online to pay directly through the CRA website. No service fee. - **Pre-authorized debit:** Set up automatic payments through CRA My Account. Useful for installment payers. - **Cheque or bank draft:** Made payable to the Receiver General for Canada. Mail to the CRA or drop off at a local CRA tax centre. - **Canada Post:** Pay in person at a Canada Post location using cash, debit, or money order for a small processing fee. ## What Happens If You Cannot Pay Your Taxes? If you cannot pay your full CRA balance by the deadline (April 30 for most individuals), do not ignore it. The CRA charges daily compound interest on balances owing from May 1. You will also face a late-filing penalty if you have not yet submitted your return. The best approach if you cannot pay in full is to: - File your return on time to avoid the late-filing penalty (even if you cannot pay yet) - Pay as much as you can by the deadline to reduce the interest owing - Contact the CRA to discuss a payment arrangement – the CRA can set up a formal instalment plan based on your financial situation ## Can You Pay Taxes with a Debit Card in Canada? Yes. Unlike credit cards, debit card payments are accepted directly by the CRA through the My Payment portal. Accepted debit cards include Visa Debit, Mastercard Debit, and Interac Online. This is a free, direct payment option with no processing fee. **Need Help with Your Tax Bill? Talk to Taxccount** Whether you owe the CRA money, need help setting up a payment arrangement, or want to reduce your tax owing through proper deductions and planning, Taxccount’s Canadian tax experts are here to help. **Book a free consultation today.** ## Frequently Asked Questions ### Can I pay my CRA balance with a Visa or Mastercard? Not directly through the CRA. You can use a third-party bill payment service like Plastiq to pay with a credit card, but you will pay a processing fee of approximately 2%–2.5%. ### Does the CRA charge interest if I pay late? Yes. The CRA charges daily compound interest on balances owing after April 30. The rate is set quarterly and is generally several percentage points above the Bank of Canada rate. ### Can I earn credit card points by paying my taxes? Yes, if you use a third-party service to process the payment. Whether it is worthwhile depends on whether your rewards rate exceeds the processing fee charged by the service. ### What is the fastest way to pay the CRA? Online banking or the CRA My Payment portal (debit card) are the fastest methods, typically processing within 1–2 business days. Direct deposit refunds and debit card payments through My Payment are generally the fastest and most convenient options. **Book a Free Consultation – We Can Help** Taxccount helps individuals and businesses across Canada navigate CRA payments, tax owing, payment arrangements, and filing – accurately and on time. **Book your free consultation with Taxccount today.** ## Manage Tax Payments Better [☎️ Get Help](https://taxccount.com/book-a-consultation/) This is general information only and not professional advice. Consult a professional before acting. 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