Canadian taxpayers can pay tax owing to the Canada Revenue Agency online through four authorized methods: online banking with your bank or credit union, the CRA’s My Payment debit service, pre-authorized debit (PAD), and CRA-approved third-party providers. Line 48500 on your T1 income tax return shows your balance owing after the CRA applies credits, instalments, and withholdings. Individual taxpayers must pay this balance by April 30 to avoid daily compound interest on unpaid amounts exceeding $2.
What Is a Balance Owing to the CRA?
A balance owing is the amount you still owe the Canada Revenue Agency after filing your tax return, shown on Line 48500 of the T1 General Income Tax and Benefit Return. Line 48500 appears on your T1 return after the CRA calculates your total tax payable, subtracts any credits and instalments you’ve already paid, and determines what remains unpaid.
Individual taxpayers must pay their balance owing by April 30 (or June 15 if you or your spouse is self-employed, though interest starts accruing May 1 regardless). The CRA charges daily compound interest on unpaid balances exceeding $2, starting the day after the payment deadline. The prescribed annual interest rate fluctuates quarterly, and interest compounds daily on both the principal balance and accumulated interest.
The CRA groups all authorized payment channels, online, by mail, in person, and by phone, on its Payments to the CRA hub page. This central resource lists which methods apply to which account types and provides links to detailed instructions for each payment channel.
How to Pay Tax Owing Through Online Banking
Online banking allows you to pay tax owing directly from your chequing or savings account by adding the Canada Revenue Agency as a bill payee through your bank or credit union’s website or mobile app. Most Canadian financial institutions support CRA payments through their online banking platforms, making this the most common payment method for individual taxpayers.
Follow these steps to pay through online banking:
- Log in to your bank or credit union’s online banking portal or mobile app.
- Navigate to the “Pay Bills,” “Bill Payments,” or equivalent section.
- Select “Add a Payee” and search for “Canada Revenue Agency” or “CRA.”
- Choose the payee that matches your payment type, typically “CRA (REVENUE) – tax amount owing” for Line 48500 balance owing (choosing the wrong payee sends your payment to an incorrect CRA account).
- Enter the payment amount and the tax year (if your bank requests it).
- Confirm the payment and save or screenshot your confirmation number.
Payments made through online banking typically appear in your CRA account within 3 to 5 business days from the date you submit the payment. Most Canadian banks and credit unions allow you to schedule future-dated payments once you’ve added the CRA as a payee, which helps you meet deadlines without manual action on the due date.
How to Pay Tax Owing Using CRA My Payment
CRA My Payment is the Canada Revenue Agency’s online debit card payment service that processes payments immediately using Visa Debit, Mastercard, or bank access cards. My Payment provides instant confirmation and posts funds to your CRA account the same day you complete the transaction.
Follow these steps to pay using My Payment:
- Visit the CRA website and navigate to “Pay with a debit card through the CRA’s My Payment service” or access My Payment directly from the “Payments to the CRA” hub.
- Select whether you are an individual or a business.
- Choose your payment type from the dropdown menu. For balance owing, select “Income tax (T1) amount owing.”
- Enter your Social Insurance Number (SIN) or Business Number (BN), the tax year, and the payment amount.
- Authorize the transaction using your Visa Debit, Debit Mastercard, or bank access card.
- Save or print the confirmation receipt that appears immediately after your payment processes.
My Payment does not accept credit cards; taxpayers who want to pay with a credit card must use a CRA-approved third-party service provider. My Payment accepts only eligible debit cards linked directly to Canadian bank accounts, ensuring funds transfer immediately from your account to the CRA.
How to Pay Tax Owing by Pre-Authorized Debit (PAD)
Pre-authorized debit allows you to schedule one or multiple automatic withdrawals from your Canadian chequing account for specific future dates through CRA online services. PAD gives you control over payment timing while eliminating the need to manually initiate each transaction.
Taxpayers set up PAD agreements through secure CRA online portals: My Account for individuals, My Business Account for corporations and sole proprietors, or Represent a Client for authorized representatives. PAD supports payments for individual income tax owing (T1), tax instalments, GST/HST remittances, corporate income tax and instalments (T2), and payroll source deductions.
You specify the payment amount and withdrawal date when setting up each PAD agreement, and you can schedule multiple future payments in one session. PAD agreements can be modified or cancelled through the same CRA portal before the scheduled withdrawal date. After logging in to your CRA portal, navigate to the PAD section, select the payment type, enter the amount and date, provide your chequing account details, and confirm the agreement.
Withdrawals occur on the exact date you scheduled, and the payment appears in your CRA account the same day. PAD works best for taxpayers who make regular instalment payments or who want to ensure their balance owing payment processes on a specific date without remembering to initiate the transaction manually.
How to Pay Tax Owing Through Third-Party Providers
CRA-approved third-party service providers accept credit cards, PayPal, and Interac e-Transfer for tax payments, then forward your payment and account details to the CRA electronically while charging a service fee. The CRA does not accept credit cards directly, but authorizes certain third-party providers to process credit card payments on its behalf.
Third-party providers charge service fees, typically a percentage of the payment amount, and processing times vary by provider. CRA-approved third-party providers include PaySimply and Plastiq, among others listed on the CRA’s “Pay through a third-party service provider” page. After you complete your payment through the provider’s platform, the provider electronically transmits your payment details and remittance information to the CRA.
Taxpayers who want to earn credit card rewards points or who need flexible payment options may find third-party providers useful despite the service fees. Third-party providers are the only authorized way to pay CRA tax owing with a credit card, PayPal, or online money transfer services. Verify the exact service fee percentage, processing timeline, and accepted payment methods on the provider’s website before initiating your transaction.
What Payment Types Can You Pay Online?
Online payment methods support multiple CRA account types, including individual income tax owing (T1), corporate income tax (T2), GST/HST remittances, payroll source deductions, and tax instalments. The CRA’s Make a payment hub lists which account types each payment method accepts, because not all methods support all payment types.
Online banking, My Payment, and pre-authorized debit all support T1 income tax owing, T1 instalments, GST/HST remittances, payroll source deductions, T2 corporate income tax, and T2 instalments. Third-party providers accept most payment types, but support varies by provider; verify on the provider’s website before initiating payment.
| Payment Method | Fees | Processing Time | Accepts Credit Cards? | Accepts Debit Cards? |
| Online Banking | No fees | 3–5 business days | No | Yes (indirectly via account) |
| My Payment | No fees | Immediate | No | Yes (Visa Debit, Debit Mastercard) |
| Pre-Authorized Debit (PAD) | No fees | Scheduled date | No | Yes (via chequing account) |
| Third-Party Providers | Service fees apply | Varies by provider | Yes | Varies by provider |
Choosing the correct payment type during the transaction ensures the CRA applies your payment to the right account and tax year.
| Payment Type | Online Banking | My Payment | PAD | Third-Party |
| T1 income tax owing | Yes | Yes | Yes | Yes |
| T1 instalments | Yes | Yes | Yes | Varies |
| GST/HST remittances | Yes | Yes | Yes | Yes |
| T2 corporate tax | Yes | Yes | Yes | Varies |
| Payroll source deductions | Yes | Yes | Yes | Varies |
How Long Does an Online Payment Take to Process?
Online banking payments take 3 to 5 business days to appear in your CRA account, while My Payment processes immediately and PAD withdrawals occur on the scheduled date. Payments made through online banking typically appear in your CRA account within 3 to 5 business days from the date you submit the payment.
My Payment processes funds immediately and provides instant confirmation, making it the fastest online option when you need same-day posting. Pre-authorized debit withdrawals occur on the exact date you scheduled, and the payment appears in your CRA account the same day.
Third-party service provider processing times vary by provider; most forward payments within 1 to 3 business days, but verify the timeline on the provider’s website. The CRA’s Confirm a payment tool allows you to verify that your payment was received by entering your payment details and checking your account status.
To ensure your payment arrives before the April 30 deadline, submit online banking payments at least 5 business days in advance. My Payment and pre-authorized debit give you same-day or scheduled-date posting, providing more precise deadline control.
What Payment Methods Does the CRA Never Accept?
The Canada Revenue Agency does not accept cryptocurrency, gift cards, traveller’s cheques, or cash by mail as payment methods. The CRA explicitly states that cryptocurrency, gift cards, and traveller’s cheques are never accepted as valid payment methods for any CRA account type.
The CRA warns taxpayers never to mail cash, as mailed cash cannot be tracked, confirmed, or recovered if lost. Legitimate CRA communication uses official channels; requests for payment via prohibited methods or unusual channels indicate a scam. Taxpayers who receive suspicious payment requests verify the communication’s authenticity through the CRA’s official contact numbers listed on canada.ca.
Frequently Asked Questions
Do I need a remittance voucher to pay tax owing online?
No, you do not need a remittance voucher to pay tax owing online through banking, My Payment, or pre-authorized debit. Remittance vouchers are paper forms that contain account information to help the CRA apply mailed or in-person payments correctly; online methods transmit this information electronically and do not require vouchers.
Can I pay my CRA balance with a credit card?
You cannot pay your CRA balance with a credit card directly, but you can use a credit card through CRA-approved third-party service providers that charge service fees. The CRA’s My Payment service accepts only debit cards, and online banking withdraws directly from your account; credit card payments require a third-party intermediary like PaySimply or Plastiq.
What’s the difference between “tax return” and “tax amount owing” payees in online banking?
“Tax amount owing” applies payments to your Line 48500 balance owing, while “tax return” may apply payments differently depending on your bank’s payee configuration. Always select the payee labelled “tax amount owing” or “CRA (REVENUE) – tax amount owing” when paying your Line 48500 balance to ensure correct account allocation.
What if I can’t pay my balance owing in full?
Contact the CRA to arrange a payment plan through the Arrange to pay your debt over time service if you cannot pay your balance owing in full by the due date. The CRA may accept a payment arrangement that allows you to pay your balance owing in instalments over several months.
How do I know my payment was received?
Use the CRA’s Confirm a payment tool or check My Account to verify your payment was received and applied to your balance.
Conclusion
The CRA authorizes four online payment methods for tax owing, online banking, My Payment, pre-authorized debit, and third-party providers, each with different processing times, fees, and card acceptance. Online banking and My Payment charge no fees, while third-party providers charge service fees for credit card and PayPal options.
Pay your balance owing by April 30 to avoid daily compound interest on amounts exceeding $2. Choose the method that matches your timeline: My Payment for immediate posting, online banking for no-fee scheduled payments, PAD for automatic future withdrawals, or third-party providers for credit card rewards.
Save your payment confirmation number and verify receipt using the CRA’s Confirm a payment tool or My Account within 5 business days. Submit payments well before the deadline to account for processing time and ensure compliance with CRA due dates.
