How to Pay the Canada Revenue Agency (CRA)

How to Pay the Canada Revenue Agency (CRA)

Paying taxes is a crucial responsibility for Canadians, but with the variety of methods offered by the Canada Revenue Agency (CRA), the process is simpler than ever. Whether you’re an individual or a business, you can choose from several convenient options to make your CRA payment quickly and securely.

1. Online Banking

One of the easiest ways to pay your taxes is through online banking, similar to paying other household bills. Here’s how to get started:

  1. Log in to your online banking account.
  2. Navigate to the “Pay Bills” section.
  3. Add Canada Revenue Agency or Receiver General as a payee.

Steps to Complete the Payment:

For individuals

  • Enter your SIN (Social Insurance Number)
  • Choose the appropriate payment option, such as:
    • CRA (revenue) – Tax owing for specific tax years.
    • Tax instalments for prepayments.
    • Past tax owed for outstanding balances.
  • Specify the payment amount.
  • Select the account to pay from.
  • Choose between a one-time payment or a recurring plan.

For businesses, online banking supports payments like:

  • Enter your BN (Business Number)
  • Choose the appropriate payment option, such as:
    • Pay GST online (GST-P).
    • Filing HST returns (GST34).
    • Federal payroll deductions (PD7A).
    • Corporate taxes (TXINS).
  • Specify the payment amount.
  • Select the account to pay from.
  • Choose between a one-time payment or a recurring plan.

This method simplifies record-keeping by issuing a confirmation number for each CRA payment online.

2. CRA My Payment

The CRA My Payment service is an electronic option for paying taxes directly from your bank account using Interac Online. It’s a fast and secure way to pay both personal and business taxes.

What Can Be Paid Using My Payment CRA?

  • For Individuals: Income tax instalments, current-year tax owing, or past tax owed.
  • For Businesses: GST/HST, payroll source deductions, corporate income taxes, and non-resident withholding taxes.

Steps to Use My Payment CRA:

  1. Visit the CRA My Payment portal.
  2. Select the type of payment you want to make.
  3. Use your Interac-enabled debit card to complete the transaction.

Participating Banks:
Ensure your bank is part of the Interac program. Major participants include:

  • RBC
  • BMO
  • Scotiabank
  • TD Canada Trust

3. CRA Payment Online via Pre-Authorized Debit (PAD)

The Pre-Authorized Debit (PAD) option allows the CRA to withdraw payments directly from your bank account.

How to Set Up PAD:

  • For individuals: Use CRA My Account.
  • For businesses: Use CRA My Business Account.

PAD is convenient for scheduling multiple payments, whether you’re making regular instalments or paying off outstanding balances.

4. How to Pay CRA Online with a Credit Card

Although the CRA doesn’t accept direct credit card payments, you can use third-party services like Plastiq to pay taxes.

Payment Options Through Plastiq:

  • T1 Individual taxes.
  • T2 Corporate taxes.
  • GST/HST.
  • Source deductions.

Fees:
Plastiq charges a service fee of 2.5% for credit card transactions. Visa debit cards, however, are accepted without additional fees.

5. How to Pay CRA by Mail

If online methods aren’t suitable, you can send a cheque to the CRA. Ensure the following details are included:

  • Your SIN or Business Number (BN).
  • Applicable tax year.
  • Purpose of payment (e.g., balance due, instalments, GST/HST).

Attach a cover letter specifying these details to avoid payment misallocation.

Pay CRA Online: Simplified and Secure

With options like CRA My Payment, online banking, and pre-authorized debit, paying taxes in Canada has never been easier. Whether you’re an individual looking to pay taxes online in Canada or a business needing to pay HST online, there’s a solution tailored to your needs.

For further assistance, contact Qmulus CPA. We specialize in simplifying tax and accounting processes for individuals and businesses across Canada and globally. Reach out today at info@qmuluscpa.ca or call 647-695-6950 to learn how we can help!