Canada is a developed country, but taxpayers face significant challenges when it comes to paying taxes to the CRA. Please be prepared before reading further.
- CRA’s My Payment Web Services used to be the best option as the advantages are same-day funds transfer with no fee incurred, but the problems are:
- If you pay by your debit card, only TD works
- Payment with a credit card incurs high transaction fees
- Individual taxpayers can pay their income taxes to CRA through their personal bank accounts by adding CRA as the payee and using their SIN as the account number.
- For businesses paying RC/RT/RP taxes, it is recommended to use Tax Filing Services by the commercial bank account.
- For self-employed individuals paying HST, if you do not have a personal account with TD Bank but you have a business bank account, using Tax Filing Services is the best solution.
- Companies can pay taxes through a pre-authorized debit arrangement with CRA.
- If you don’t mind transaction fees and delayed receipt of funds, all types of tax payments can be made by:
- Lining up in your bank branch to pay in person, or
- Use paysimply.ca with
- Your debit card (with a 1% transaction fee, which is currently considered cost-effective)
- Generating a QR code and paying at Canada Post office
However, please note that whether paying in person at the bank or using PaySimply, there is a possibility that the funds you pay may not be deposited into the specific account you intended at CRA.
- In such cases, you may have to wait several business days and contact CRA to verify and adjust the payment.
- If you are a non-resident taxpayer:
- To pay withholding tax into the NRx123456 account, you can use methods 1, 3, or 5 mentioned above.
- Unfortunately, if paying outstanding taxes into the ITN account 09x-999-999, the only option is to mail a cheque to CRA.
Finally, if you still are unable to pay your tax liability, our firm offers a Fee-based Payment Service for our existing clients. Please contact our office for further inquiries.