If you owe the taxman money this year, paying on time is the best way to avoid penalties and interest.
As Canada’s tax law administrator, the Canada Revenue Agency (CRA) makes it easy to pay your taxes in a number of different ways — including by swiping your credit card.
If you’re thinking about using your card to make a tax payment, here’s a rundown of what to consider before you do.
How to pay your taxes in Canada with a credit card
Can you pay taxes with a credit card?
The CRA still doesn’t accept direct credit card payments. Instead, you can use services like PaySimply or Plastiq, which accept your credit card and forward the payment to the CRA — usually for a fee.
If you choose to use a payment service provider, you should be prepared to:
- Pay a service fee
- Share information (such as your Social Insurance Number) to ensure your payment goes to the right tax account
- Use ‘My Account’ to confirm your payment has been received by the CRA
You are ultimately responsible for getting your taxes to the CRA on time. So double-check your service provider’s delivery timeframe and pay well in advance.
Benefits of paying taxes with a credit card
There can be advantages to paying your taxes with a credit card.
Here are some key ways you may benefit:
- Using an online service provider lets you pay your taxes from anywhere
- Depending on your card, you could earn sizeable rewards or cash-back
- Timeframe between your card’s statement and payment dates can give you several extra weeks to make a payment on your taxes before credit card interest kicks in
Drawbacks of paying the CRA with a credit card
There are also situations when using a credit card to pay your taxes may not make sense.
Here are some drawbacks to consider:
- Your payment provider’s service fee might cost more than the credit card rewards you’re hoping to earn
- If you can’t pay the tax amount you’ve charged to your card when it’s due, you could pay more in credit card interest than the CRA currently charges — given that most credit cards charge between 20% to 23% interest versus the CRA 10% interest for overdue taxes
Read More: Find the best tax software to help you file by the CRA deadline of April 30, 2025
How to pay your taxes with a credit card using PaySimply
If you do decide to swipe for the taxman, you’ll be happy to know PaySimply has partnered with the CRA to make paying by credit card fast and secure.
All you need to do is:
- Choose your payment type (Individual (T1) 2023 tax return, for example)
- Enter your email, SIN, full name and payment amount
- Enter your payment information
- Review, submit and receive an email confirmation
Fees for using PaySimply
The fee for using your Visa, Mastercard or American Express to make a CRA payment through PaySimply is 2.5% of your payment amount.
Keep in mind, it takes about three business days for your payment to reach the CRA when paying by credit card.
How to pay your taxes with a credit card using Plastiq
Plastiq is a U.S.-based platform where you can pay organizations (including paying taxes to the CRA) that don’t accept credit cards directly.
All you need to do is:
- Set up an account and select Pay
- Add Canada Revenue Agency as a vendor and select paper check delivery
- Start a new payment and enter your full name, SIN, tax type and tax year
- Choose a delivery date and submit
Fees for using Plastiq
The fee for using your Visa, Mastercard, American Express or Diners Club to make a CRA payment through Plastiq is 2.9% of your payment amount, plus $1.49 for delivery.
Keep in mind it takes between 7 to 10 business days for your payment to reach the CRA.
How many people pay taxes with credit cards?
While the CRA doesn’t track credit card payments directly, third-party services like PaySimply reported double-digit growth in usage in recent years due to convenience and rewards.
According to PaySimply’s 2023 press release, over 50,000 Canadians used the service during the 2023 tax season.
How to pay your taxes in Canada in 2024: Other ways to pay
If you don’t want to pay the CRA with a credit card, don’t worry. There are many other ways to make a tax payment, including online, in person and by mail.
How to pay your taxes online
To pay taxes online, you can:
- Transfer funds from your bank account by adding the CRA as a payee
- Use ‘My Account’ to schedule pre-authorized debit withdrawals from your chequing account
- Pay by debit card using the CRA’s My Payment service
- Use a third-party service (like PaySimply) to pay by debit card, PayPal or Interac e-transfer
How to pay your taxes in-person
To pay taxes in person, you can:
- Visit your bank and use a remittance voucher to pay from your account or by debit card, cheque or money order
- Visit a Canada Post retail location and use a QR code to pay by cash or debit card (you’ll be charged a service fee)
- Drop off your cheque, remittance voucher and payment details at a CRA drop-box location
How to pay your taxes by mail
To pay taxes by mail, you can:
- Write a cheque to the Receiver General for Canada
- Include your remittance voucher or payment details
- Mail your envelope to the CRA
What if you can’t afford to pay?
If you owe more than you can afford, don’t rush to a high-interest credit card. The CRA offers payment arrangements.
You can set up a monthly installment plan through your CRA ‘My Account’ portal or by calling them directly.
Read More: Find the best credit card for your needs
Final thoughts
The deadline for paying your 2024 taxes is April 30, 2025. Fortunately, there are plenty of ways to pay what you owe, including paying the CRA with a credit card. File your return on time, even if you can’t pay right away. Filing late adds extra penalties. Paying late only triggers interest.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
