Making a payment to the Canada Revenue Agency is a routine financial task for many Canadians, whether for personal income tax, GST/HST, or other amounts owed. Payments can be made directly from your bank account online, by mail, or in person through several secure methods. Understanding the correct procedures and deadlines ensures your payment is processed accurately and on time, helping you avoid potential interest charges. This guide outlines the official payment options available to individuals and businesses in Canada.
Direct Electronic Payment Methods
The CRA offers several electronic payment methods that transfer funds directly from your bank account. Using your financial institution's online or mobile banking service is the most common method. You add the Canada Revenue Agency as a payee, similar to paying a utility bill, and use your Social Insurance Number as the account number to ensure proper credit. The My Payment service on the CRA website allows payments using Visa Debit or Debit Mastercard from participating Canadian financial institutions, though Interac Online Payments are no longer accepted as of May 30, 2023. For recurring payments, you can set up a Pre-Authorized Debit agreement through your CRA My Account or My Business Account, which authorizes the CRA to withdraw a specified amount on a date you choose. A new or modified PAD agreement requires the selected payment date to be at least five business days in the future to accommodate processing between the CRA and your bank. The CRA does not charge a fee for using the My Payment service, but your own financial institution may have fees or daily transaction limits for online debit transactions.
Steps for Making an Online Banking Payment
Paying through your bank or credit union's online platform is a straightforward process that mirrors paying other bills. First, log in to your online banking website or mobile app and go to the bill payment section. You will need to add the Canada Revenue Agency as a new payee if you have not done so before. When prompted for an account number, you must enter your nine-digit Social Insurance Number for personal taxes or your Business Number for corporate accounts. This step is crucial for the CRA to correctly apply your payment to your account. After entering the payment amount and selecting the date, you submit the transaction. The payment is processed through the banking system, and you should keep the confirmation number for your records. It is important to initiate online payments a few business days before any deadline to account for processing time. Financial institutions will not accept photocopies of remittance vouchers or payment forms for in-person transactions at a branch.
To ensure a smooth payment process, follow these specific steps in order. Log in to your financial institution's online banking site or mobile app and go to the 'Bill Payments' or 'Add a Payee' section. Search for and select 'Canada Revenue Agency' as the payee and enter your nine-digit Social Insurance Number or Business Number as the account number. Input the exact payment amount you wish to submit and select the date you want the payment to be processed. Review all details and submit the payment, then save or print the confirmation number for your records. Payments made through online banking are typically processed within one to three business days. You are responsible for any fees that may be charged by your financial institution for this service, though many do not charge for standard bill payments.
Using the CRA's My Payment Service
The My Payment service is a dedicated portal on the CRA website for making immediate payments. To use My Payment, you need a Visa Debit or Debit Mastercard from a participating Canadian financial institution. You do not need to be registered for a CRA online account to use this service, making it accessible for one-time payments. After selecting My Payment on the CRA website, you choose the tax program you are paying for, such as personal income tax or GST/HST. You then enter your payment details and your debit card information. The funds are withdrawn from your bank account immediately upon submission. The CRA does not charge a fee for using My Payment, but you should confirm with your financial institution about any daily transaction limits or fees they may impose for online debit transactions. My Payment simplifies accounting because the funds leave your account immediately, eliminating the need to monitor for an outstanding cheque.
Key features and requirements of the My Payment service include the acceptance of Visa Debit and Debit Mastercard from participating Canadian institutions. The service does not accept credit cards, Interac Online as of May 2023, or standard Interac debit cards. No CRA account registration is required to make a payment, and it allows payments to several CRA accounts in a single transaction. Funds are withdrawn from your bank account immediately upon transaction completion, and the CRA does not charge any fee for using this service. You should verify your card's daily transaction limit with your bank before initiating a large payment. This service is offered through the RBC Virtual Visa Debit platform and is designed for both individuals and businesses. It is particularly useful for those who want to make a payment directly on the CRA website without going through their bank's portal.
Payment by Cheque, Money Order, or In Person
Traditional paper-based payments remain an option, though electronic methods are encouraged for faster processing. Cheques or money orders must be made payable to the Receiver General for Canada. For accurate processing, you should include your personalized remittance voucher with the payment. If you do not have a voucher, you must write your Social Insurance Number or Business Number clearly on the cheque's memo line. The payment must be mailed to the CRA's Sudbury address at PO Box 3800 STN A, Sudbury ON P3A 0C3. The CRA considers the payment received on the date they physically receive the cheque, not the postmark date, so mailing well in advance of a deadline is essential. You can also pay in person with cash or debit at any Canada Post outlet, providing another accessible option for those without online banking. This method was noted as quick by users, especially during periods when other services were congested.
Important rules for submitting cheque payments include making the cheque payable to 'Receiver General for Canada' and always including your personalized remittance voucher if you have one. If no voucher exists, write your SIN or BN in the memo field of the cheque and mail it to the correct address: CRA, PO Box 3800 STN A, Sudbury ON P3A 0C3. The effective payment date is when the CRA receives the cheque, not the mail date, and photocopies of remittance vouchers are not accepted at financial institutions. For corporations, cheques for amounts over $10,000 are not compliant with 2024 rules. Paying at Canada Post involves visiting a retail outlet with your remittance voucher or account details where you can pay with cash or a debit card and receive a receipt as proof of payment. This option is helpful for individuals who prefer not to mail cheques or do not have access to online banking.
Third-Party Payment Service Providers
The CRA does not accept credit card payments directly. However, several authorized third-party service providers can process payments made by credit card, PayPal, or Interac e-Transfer and forward them to the CRA. These providers charge a fee for their service, which can start at 1.0 percent of the payment amount. This option can be useful for individuals who wish to earn credit card rewards points or for those who do not have a Canadian bank account. When using a third-party provider, you must provide your remittance details, and the provider will send the payment and information to the CRA on your behalf. It is critical to initiate these payments well in advance of your due date, as the delivery time is determined by the provider and is not immediate. Users have reported these services as simple, fast, and intuitive, though fees apply.
Considerations when using a third-party payment provider include the fees that apply and vary by provider, with some starting at a 1.0% service charge. Accepted methods typically include credit cards like Visa, Mastercard, and American Express, as well as PayPal and Interac e-Transfer. The provider submits your payment and remittance details electronically to the CRA, but payment delivery is not immediate so you must allow extra time before the due date. This service is useful for non-residents or those wanting to use a credit card for points, and no CRA account setup is required to use most third-party services. You will receive a confirmation from the provider, and the CRA will issue a Notice of Assessment. These services fill a gap for payment methods the CRA does not support directly, and they are regulated and provide a secure channel, but the added cost is a factor to consider compared to free direct payment methods.
Rules for Corporations and Large Payments
Specific rules apply to corporate tax payments and large transactions. Effective January 1, 2024, federal legislation requires that any tax payment or remittance made by a corporation exceeding $10,000 must be made electronically. This means corporations can no longer use cheques for amounts over this threshold and must use online banking, My Payment, or wire transfers. For any payment exceeding $25 million, you must make special arrangements directly with your financial institution beforehand. Corporations are encouraged to use electronic methods for all payments, regardless of size, as they are processed more quickly and reduce the risk of payments being lost or misapplied. Using a Business Number as the account identifier is essential for corporate payments to be allocated correctly. Electronic payments are also far easier for the CRA to trace if they are lost or misapplied compared to a paper cheque.
Key corporate payment requirements and procedures include the mandate that as of January 1, 2024, corporate payments over $10,000 must be made electronically through online banking or wire transfer. For any single payment exceeding $25 million, contact your financial institution in advance to arrange processing, and always use your Business Number as the account number for all corporate remittances. Electronic payments are processed faster than cheques, reducing the risk of late penalties, and wire transfers from outside Canada must be in Canadian dollars only. Pre-authorized debit can be set up through My Business Account for recurring corporate instalments, and third-party service providers can also be used for corporate credit card payments, subject to fees. This shift to mandatory electronic payments for larger amounts aims to improve efficiency and security for both businesses and the government, so corporations should update their accounts payable processes accordingly.
Common Payment Mistakes to Avoid
Several common errors can delay the processing of your CRA payment or result in misapplication. One frequent mistake is entering an incorrect account number when paying through online banking, such as using an outdated number or omitting a digit from your SIN or BN. Another error is mailing a cheque without a remittance voucher or without writing your identification number on the cheque, which can significantly delay posting. Forgetting to account for processing times, especially for pre-authorized debits which require a five-business-day lead time, can cause a payment to be late. Using a third-party service provider without leaving enough time for their processing before the CRA deadline is another pitfall. Finally, non-residents making wire transfers must ensure the funds are in Canadian dollars, as foreign currency transfers will not be accepted. Ensuring you provide accurate information is the best way to help the CRA apply your payment to the intended account.
Payment Options for Specific Situations
Individuals living outside Canada who do not have a Canadian bank account can make payments to the CRA via an international wire transfer in Canadian dollars. It is important to coordinate this with your financial institution, as they will determine the exchange rate and any applicable fees on the transaction date. Wire transfers for non-resident GST/HST security deposits are not currently available, but you can also use a third-party payment service provider that accepts foreign credit cards or PayPal. Individuals and businesses required to make quarterly tax instalments can use any standard payment method. Setting up a Pre-Authorized Debit plan through My Account is a common way to automate these recurring payments, ensuring they are never missed. You can create, modify, or skip a payment date through your online CRA account, and the 'pay by pre-authorized debit' option is also available through GST/HST Netfile for an amount owing. If you lack a personalized voucher, you can still pay electronically by using your SIN or BN as the account number. For cheque payments, clearly writing your SIN or BN on the cheque is mandatory for the CRA to identify your account, and you can request personalized remittance vouchers online through My Account or by phone from the CRA.
Frequently asked questions
Can I pay the CRA with a credit card?
The Canada Revenue Agency does not accept credit card payments directly. However, you can use an authorized third-party payment service provider to pay your CRA amount with a credit card, PayPal, or Interac e-Transfer. These providers charge a fee for their service, which can start at 1.0 percent of the payment amount. The provider then forwards your payment and details to the CRA electronically.
Can I pay the CRA at Canada Post?
Yes, you can make a payment to the CRA in person at any Canada Post outlet. Canada Post accepts payments in cash or by debit card. This provides a convenient option for individuals who may not use online banking or who prefer to make payments in person. You should bring your remittance voucher or have your account information available.
What is the payee name for CRA cheques?
All cheques or money orders sent to the CRA must be made payable to the Receiver General for Canada. This is the official payee name that financial institutions and the CRA recognize. You must also include your personalized remittance voucher with the payment or, if you do not have one, clearly write your Social Insurance Number or Business Number on the memo line of the cheque. Payments should be mailed to Canada Revenue Agency, PO Box 3800 STN A, Sudbury ON P3A 0C3. The payment is considered received on the date the CRA receives the cheque, not the postmark date.
How long does a pre-authorized debit payment take to process?
When you set up or modify a Pre Authorized Debit agreement with the CRA, the payment date you select must be at least five business days in the future. This lead time is required for the necessary processing between the CRA and your financial institution. The funds will be withdrawn from your specified Canadian chequing account on the exact date you authorize. This secure online service eliminates the need for postdated cheques and can be managed through your CRA My Account or My Business Account.
What happens if my corporation pays over $10000 by cheque?
Effective January 1 2024, federal legislation requires corporations to make any tax payment or remittance exceeding $10000 electronically. If a corporation submits a cheque for an amount over this threshold, it may not be in compliance with the law. The CRA strongly encourages electronic payments for all amounts due to faster processing and reduced risk of loss. Electronic payments are processed quicker and are easier for the CRA to trace if they become lost or misapplied.
What account number do I use for online banking payments?
When adding the Canada Revenue Agency as a payee in your online banking, you must use your nine digit Social Insurance Number as the account number for personal income tax payments. For business related payments, you must use your Business Number. Using the correct identifier is essential for the CRA to apply your payment to the right account promptly. You do not need a remittance voucher when making your payment electronically through your bank or credit union's online platform.
Sources and further reading
- Pay CRA taxes with credit card, Interac e-Transfer, cash ... paysimply.ca
- Making Payments to the Canada Revenue Agency turbotax.intuit.ca
- CRA My Payment, RBC Royal Bank rbcroyalbank.com
- How to Make a Payment with Canada Revenue Agency ... - DJB djb.com
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.