Filing your taxes is a big step, and the final part is learning how to pay taxes in Canada. It can feel like the last hurdle in a long race. The good news is that the Canada Revenue Agency (CRA) offers many simple ways to pay what you owe.
We’ll break down each option, step by step, so you can choose the best one with zero stress. Let’s make this final step the easiest one yet.
Understanding Your Notice of Assessment (NOA)
After filing, the CRA sends you a key document called the Notice of Assessment (NOA). Here’s what you need to know about it:
Top Methods for Paying Your Taxes in Canada
Now, let’s look at the best ways to make your tax payment. You can choose the one that works best for you.
Method 1: Online Banking – The Most Popular Choice
One of the simplest ways to pay taxes online in Canada is through your own bank. It’s just like paying any other bill online.
Here are the simple steps to follow:
- First, log in to your bank’s website or mobile app.
- Next, go to the “Bill Payments” section.
- Then, click “Add a payee” and search for “Canada Revenue Agency” or “CRA.”
- Choose the right option, like “Tax amount owing.”
- Use your 9-digit Social Insurance Number (SIN) for the account number.
- Finally, enter the amount you want to pay and hit submit.
This method is very secure, and your payment gets there quickly. If your finances are a bit more complex with a business or investments, our tax and estate planning services can provide the expert guidance you need.
Method 2: Using CRA’s ‘My Payment’ Service
The CRA has its own special tool called ‘My Payment’. This service lets you pay your taxes directly on the CRA website.
The big advantage is that you can use Interac® Online, Visa® Debit, or Debit Mastercard®. It’s a great choice for a direct and simple CRA tax payment online.
Method 3: Pre-Authorized Debit (PAD)
A Pre-Authorized Debit, or PAD, is another great option. This lets you set up payments to be taken directly from your bank account on specific dates.
This is perfect for people who make tax instalment payments throughout the year. For new business owners, staying on top of taxes is key, and our incorporation and start-up assistance can help you get started on the right foot.
Method 4: Paying by Credit Card or PayPal (via a Third Party)
You might be wondering if you can pay your taxes with a credit card. The CRA doesn’t accept credit cards directly.
However, you can use a third-party company like PaySimply or Plastiq to pay with your credit card or PayPal. Just remember, these services charge a fee, so it might cost you a little extra.
Method 5: Traditional Methods – Mail or In-Person
If you prefer not to pay online, you can still use older methods. You can mail a cheque or money order to the CRA.
Make sure to write it out to the “Receiver General for Canada.” You can also go to any Canada Post office to pay in person. Keep in mind that electronic payments are usually faster and easier to keep track of.
To learn more about these, you can always choose to work with a financial professional like Phoenix Knight.
What Happens if You Miss the Payment Deadline?
Helpful Tip: If you find yourself in this situation, it’s important to act quickly. Understanding your options for late tax filing can help you minimize penalties and get back on track.
Conclusion: Making Your Tax Payment with Confidence
As you can see, knowing how to pay taxes in Canada is a straightforward process once you know your options. From online banking to paying in person, there’s a method for everyone.
For personalized advice on your tax situation, it’s always best to consult with a professional. Authored by Robin, an expert in Canadian tax law, this guide is intended to provide you with the essential information you need. For more details, you can read Robin’s biography.
