What are my options for paying income tax I owe to the CRA?
Ontario residents pay their federal and provincial income tax to the CRA (not to a separate Ontario agency), using any of the CRA's standard payment methods. The most common and recommended method is online banking — most major Canadian banks allow you to set up a "Canada Revenue Agency – Income Tax Owing" payee in their bill payment system, using your SIN as the account number. Payments process within one to three business days.
You can also pay using the CRA's My Payment service (a direct online debit from your bank account via Visa Debit or Interac Online), through a credit card via a CRA-authorized third-party provider (a service fee applies), at a Canada Post outlet using a CRA remittance voucher, by wire or electronic funds transfer, or by mailing a cheque to the CRA. Cash payments at CRA offices are not generally available.
If you cannot pay the full amount by the deadline, pay as much as you can to minimize interest, then contact the CRA to discuss a payment arrangement. Interest on unpaid balances compounds daily. Do not simply delay payment — the interest cost is significant. If you are in financial hardship, the CRA has a "taxpayer relief" process that can waive interest and penalties in certain circumstances, though approval is not automatic.
Key takeaways
- The most common method is online bill payment through your bank using your SIN.
- You can also use My Payment, third-party credit card processing, Canada Post, or mail a cheque.
- Pay as much as possible by the deadline to minimize daily compound interest.
- Contact the CRA about payment arrangements if you cannot pay in full.