How to Pay Your Taxes Online

How to Pay Your Taxes Online

April 10, 2020

You can pay your taxes online easily. If you owe taxes or want to set up instalment payments, the process is the same.  So, this article covers how to pay your taxes online using your online banking to pay:

  • Current Year Balance
  • Balances from Previous Years
  • Instalment Payments – especially if you are self-employed

Online Banking

Just like you use your online banking to pay your other bills, you can pay your taxes, too.

  1. First, sign in to your online banking.
  2. Then, under “Add a payee” look at the options:
    • CRA (revenue) – current-year tax return
      • This makes a payment on this year’s return. This option only works once a year.
    • CRA (revenue) – tax amount owing
      • Pay amounts you owe from previous years, or if you didn’t pay the full amount when you used the current-year return option.
    • CRA (revenue) – tax instalment
      • Make installment payments to prepay your taxes for the year.
  3. Finally, your 9-digit SIN (social insurance number) is your CRA account number.

That’s all. So, now you’re ready to make the payment. Just pay like you do with any other bill through your online banking. CRA usually receives payments within 5 business days. If you owe $2 or less in 2019, you don’t need to pay anything.


Pay Your Taxes Online with CRA’s My Payment Service

CRA’s My Payment service lets you pay online. This service works if you have a Visa® Debit, Debit MasterCard® or Interac® Online at any participating financial institution.

See also ‘Registering for CRA My Account

Pre-Authorized Debits for Automatic Withdrawals to Pay Your Taxes Online

Authorize CRA to withdraw funds automatically for an outstanding balance or set up instalments to prepay. Firstly, you need a CRA My Account or a My Business Account to set up the pre-authorized debits. From there, set up the automatic payments on a schedule, or pay your total overdue balance at once.

NOTE: Also, additions or changes to pre-authorized debit profiles can take up to five days. Select another way to pay overdue taxes.

No matter how you pay your taxes online, make sure CRA receives the payment by your due date. CloudTax Free and CloudTax Pro help you process payments for current and previous tax years.

See also ‘How do I make a payment to CRA?



Nimalan Balachandran is the Founder & CEO of CloudTax, an income tax filing platform, certified by the Canada Revenue Agency, that allows simple tax filers to file their taxes from home. He was a former employee at the Canada Revenue Agency, and has been in the tax preparation industry for over 10 years. His goal was to bring his passion for technology and assisting Canadians in minimizing their taxes together, by building new software that allows Canadian residents to file simple taxes on their own. Along with his background in accounting, finance, artificial intelligence & business strategy from Seneca College and Massachusetts Institute of Technology, Nimalan has also worked as a Financial Advisor at Sun Life Financials. Nimalan also co-founded a not-for-profit organization, ATI Foundation, serving individuals with intellectual and physical disabilities in the Greater Toronto Area.


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