Can you pay the CRA with a credit card?

How to pay your taxes in Canada with a credit card

Can you pay taxes with a credit card? The CRA doesn’t accept credit card payments directly. But you can use your card to pay a third-party service provider (such as PaySimply or Plastiq) and have them send in your tax payment for you.

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 CRA 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 benefits by paying a large tax amount

·       The built-in window between your card’s statement and payment dates can give you several extra weeks to pay your taxes before 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 (think 20% interest for most credit cards versus 10% interest for overdue tax)

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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. 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 US-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. It takes about eight business days for your payment to reach the CRA when sending a cheque.

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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

Final thoughts

The deadline for paying your 2023 taxes is April 30, 2024. Fortunately, there are plenty of ways to pay what you owe, including paying the CRA with a credit card. Even if you can’t pay your total tax amount by the due date, you can still avoid late filing charges by filing your tax return on time.

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