The 3 Main Options for Paying Your Taxes
Pay Your Taxes on Time
This is the ideal situation for paying your taxes – pay what you owe in full and on time. This way, you are not subject to any interest or penalties on the amount owed.
You can pay your taxes in person, online or by mail. If you choose to pay online, be aware that the payment may take up to three business days to reflect on your account. Mail is also subject to delays, so it may take time to process your payment.
Once you have paid your taxes, you can confirm your payment in your CRA account. Just wait at least three days for online payments and about ten days for a cheque or money order to reflect in your records.
Defer Your Taxes
If you cannot pay your taxes, you may consider deferring them to a later date. This will relieve the immediate burden but may put pressure on you in future years. Contact the CRA right away to discuss deferment as an option.
Set Up an Income Tax Payment Plan in Canada
If coming up with a lump sum payment seems impossible at the time, a payment plan might be a more convenient option for you. Consider your budget. Once you pay all your expenses, is there some money left over to pay a portion of your taxes every month? Arranging to pay your debt over time is likely a more suitable arrangement than deferring the full tax burden for another year.