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The Canada Revenue Agency (CRA) and some provinces allows taxpayers to pay their taxes online, in person or by mail. When you’re ready to make your payment, you’ll have a variety of options. 

What some people don’t realize is that using your credit card is another option, and it can be lucrative in certain situations.

Key Points

  • You can pay your taxes with your credit card using third-party service providers like PaySimply. 
  • There are nominal fees required to use these services.
  • You can also use these third-party services to pay your taxes using Interac e-Transfer, PayPal, or at a Canada Post location.

Can You Pay Your Canadian Taxes With A Credit Card?

If you’d like to pay your taxes using a credit card, you’ll need to use a third-party service provider like PaySimply. These services allow you to make a payment to the CRA, however, they charge you a fee for their service. Processing times for each service will vary, as will the types of credit cards accepted. 

Even with a third-party payment cost, paying with a credit card may still be a good option in some cases, especially with a rewards-earning card.

How To Pay Your Taxes With A Credit Card?

Depending on the third-party service provider you choose to pay your taxes with, the process, fees and credit cards accepted will vary. Regardless of which service provider you choose, make sure you check to see if the Canada Revenue Agency is an available payee. 

How To Pay Your Taxes With A Credit Card Through PaySimply

PaySimply is a popular and convenient way to pay the CRA and other bills online using a credit card. To make a payment to the CRA, start by searching for and clicking on the Canada Revenue Agency or your municipality. Then, follow these steps:

Step 1.

Provide details on the type of tax you’d like to pay. You can choose between individual and business taxes. 

Step 2.

Once you’ve provided information on the type of payment you’d like to make to the CRA, you’ll need to provide some personal information. This includes your full name, social insurance number, email address and total payment amount. 

Step 3.

The next step involves providing your payment information. PaySimply offers a variety of payment options as follows:

  • Credit Card (Amex, Visa and Mastercard) – Payment should appear in your CRA My account in 8 business days. 
  • Paypal – Payment should appear in your CRA My account in 8 business days. 
  • Canada Post – Payment should appear in your CRA My account in 5 business days. 
  • Interac e-Transfer – Payment should appear in your CRA My account in 6 business days. 

Step 4.

Once you’ve chosen your payment method and inputted all the information, you’ll be asked to review your entire payment. If everything is accurate, you can submit your payment. 

Once you submit your payment, you’ll receive a confirmation. 

PaySimply Fees

Fee
Credit card (Mastercard, Visa, American Express, UnionPay)2.5%
Canada Post offices (cash or debit)$3.95 – $7.95 
Interac e-Transfer1.0%
PayPal
Alipay
2.5%
2.5%

Benefits Of Paying Your Taxes Through PaySimply

  • PaySimply Mobile App – Track your payments and schedule reminders (which is not offered on the website). Manage and pay all of your individual and business taxes on the go in just a few simple clicks. 
  • Variety Of Payment Options – PaySimply offers a wide variety of payment options to choose from including credit cards, PayPal, Interact e-Transfer and in-person through Canada Post. 
  • Earn Credit Cards Points – When you use your credit card to pay your tax bill you’ll earn points (if you have a rewards or cash back credit card). Just keep in mind that the number of points you earn likely won’t offset the fee you’ll pay. 

Should You Pay Your Taxes By Credit Card?

The Canada Revenue Agency allows Canadians to pay their taxes using their credit cards through a third-party service. While there are certainly pros to using your credit card through these third-party services to pay off your tax debt, there are also cons you should consider. 

Pay Your Taxes By Credit Card: The Pros

  • Points: Paying taxes you owe with a credit card could help you meet the minimum spending requirement to get a credit card welcome bonus. That could be worth more than the fee you’re paying.
  • Grace Period: The number of days between receiving your monthly statement and making your payment is known as the grace period on your credit card. The majority of credit cards offer a 21-day interest-free grace period. This provides you some interest-free time to save enough money to pay off your credit card before the grace period ends, as well as to pay off your tax bill before late penalties are applied.
  • Convenience: Credit card payments allow you to pay your tax bill with your preferred credit card from any location in the world.

Pay Your Taxes By Credit Card: The Cons

  • Cost: When you use a third-party service like PaySimply, you’ll be charged a fee for their services. These fees are percentage-based, so the higher your payment, the more fees you’ll pay. As a result, check to make sure the cost of using a credit card is justified in terms of rewards. For example, if you owed $2,000 in taxes and you’re being charged a 2.5% fee, that would cost you $50 in fees. 
  • Interest: If you can’t entirely pay off your credit card within the grace period, you might reconsider paying your tax obligation with a credit card. The interest rate on most credit cards will be around 19%. When the grace period expires, you’ll be stuck with a potentially large sum on a credit card, with a rate that’s definitely higher than the CRA would have levied.

Note: If you file your taxes on time but are unable to pay your entire tax bill on time, the balance owed to the government will begin to accrue interest (a late-filing penalty of 5% on any unpaid arrears) on the amount owed.

Other Ways To Pay Your Taxes In Canada 2024

You can pay your taxes in a variety of ways other than with a credit card. 

1. How To Pay Your Taxes Online

  • CRA My Payment. My Payment is an online service that allows you to make immediate payments to the CRA using your bank access card. The CRA typically processes payments in 1 to 3 working days.
  • Pre-Authorized Debit (PAD). Individuals and corporations can pay their taxes using pre-authorized debit (PAD), a secure online self-service payment alternative. You choose the payment amount and permit the CRA to deduct it from your Canadian chequing account on the date(s) you specify.
  • Wire Transfer. Non-residents without a Canadian bank account can pay the CRA by wire transfer or with an internationally issued credit card through a third-party service provider. 

2. How To Pay Your Taxes In Person

  • Financial Institution. The payment is considered complete as of the date stamped. At your Canadian bank, financial institution, or credit union, you can pay using a printed individual remittance voucher.
  • Canada Post Locations (debit or cash). Pay with a QR code at a Canada Post store to ensure your payment is applied to the correct CRA account (service fees apply)

3. How To Pay Your Taxes By Mail

You can pay your taxes by mail by sending your remittance voucher together with your Canadian cheque or money order payment. Once the CRA receives the payment, it is considered paid.

Conclusion

Using a third-party service like PaySimply to pay your tax bill is a convenient option and can even earn rewards points from your credit cards. Just be sure that the advantages outweigh the disadvantages, and that you can pay off the borrowed money before the grace period ends to avoid paying interest.

Tax Payments FAQs

Is it a good idea to pay your taxes with a credit card?

It’s all about balancing the benefits of points, the grace period, and the convenience. For example, if your credit card has a great rewards program, then you may be able to earn a significant number of points. Further, your credit card’s grace period can provide you some interest-free time to save enough money to pay off your credit card before the grace period ends. Plus, the convenience enables you to pay your tax bill with your preferred credit card from any location in the world.

Can You Pay Property Taxes By Credit Card In Ontario?

Yes, you can pay your property tax to the municipality you live in by credit card. However, you will also be charged a convenience fee by the industry.

Can You Pay Vancouver Property Taxes By Credit Card?

No, the city of Vancouver does not accept credit card payments to pay property taxes. The only ways to pay your property taxes in Vancouver is through the following:

How do I pay my taxes with a credit card?

You can pay your taxes with a credit card through a third-party service provider, who will send your payment and remittance data to the CRA online on your behalf. For their services, third-party service providers charge a fee. The main third-party provider is PaySimply.

Does the CRA accept credit cards?

You can use a third-party service provider, like PaySimply, that offers payment by credit card, debit card, PayPal, or Interac e-Transfer. The third-party service provider will send your individual or business payment and remittance details online to the CRA for you.

What is the downside to paying your taxes with a credit card?

The consistent downside of paying a tax liability with a credit card is the processing fee and interest your credit card balance accrues if you do not pay it off right away.

How do I pay my taxes to the CRA?

There are numerous ways you can choose to pay your taxes to the CRA, including online, in-person or by mail. Depending on the method you choose, the payment options will vary.

Which credit card can I use to pay my income taxes?

You can usually use any Visa or Mastercard credit card you have. Some services may also accept American Express and other credit card types. If you don’t have a credit card, you can get instantly approved via these credit cards.
Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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