Navigating the Canada Revenue Agency (CRA) website to pay your taxes can feel overwhelming, but it doesn’t have to be. Whether you’re settling a personal tax bill or making a payment for your business, understanding the correct online process is crucial. This guide breaks down how to pay CRA online, clarifies the key differences between using a CRA My Account for personal taxes and a CRA My Business Account, and helps you avoid common pitfalls.
For small business owners, managing tax obligations effectively is a cornerstone of financial health. At Padgett Business Services, we specialize in taking the complexity out of taxes, so you can focus on what you do best.
Business vs. Personal: What’s the Difference?
The first step is knowing which portal to use. The CRA separates personal and business tax accounts to streamline administration. Using the wrong one is a common error that can lead to payment allocation issues and unnecessary stress.
Here’s a simple breakdown of the two main portals:
| Feature | CRA My Account (Personal) | CRA My Business Account |
| Primary Use | For individual tax matters. | For all business-related tax accounts. |
| Identifier | Social Insurance Number (SIN) | Business Number (BN) |
| Common Payments | – Income tax balance owing
– Installment payments – Canada Child Benefit overpayments |
– GST/HST payments
– Payroll source deductions – Corporation income tax |
Essentially, if you are paying taxes related to your personal income (T1), you’ll use CRA My Account. If you are remitting payments on behalf of your registered business, you’ll need your CRA My Business Account.
Where to Click: A Step-by-Step Guide
Once you’ve logged into the correct portal, making a payment is straightforward. The most popular method is using your financial institution’s online banking service.
Paying Through Your Bank (Personal or Business)
1. Log in to your online banking portal.
2. Navigate to the “Bill Payments” section.
3. Add a new payee. Search for “Canada Revenue Agency,” “CRA,” or a similar variation. You will see several options.
- For personal income tax, select the appropriate option (the name may vary slightly by bank):
CRA (REVENUE) – 20XX TAX RETURN for payment of tax BEFORE assessment
CRA (REVENUE) – tax amount owing for payment of ASSESSED tax
CRA (REVENUE) – tax installment, for payment of installments (Mar 15/Jun 15/Sept 15/ Dec 15)
- For business payments, choose the specific account type, such as:
CRA (REVENUE) – Corporation Tax Payments – TXINS – for tax installments
CRA (REVENUE) – Corporation Income Tax Balance Due — TXBAL for tax balance owing upon filing
CRA (REVENUE) – GST/HST
CRA (REVENUE) – PAYROLL.
4. Enter your account number.
- For personal payments, this is your Social Insurance Number (SIN)
- For business payments, this is your 15-character Business Number (BN) (e.g., 123456789RT0001).
5. Make the payment just as you would any other bill.
Paying Directly on the CRA Website
You can also pay directly through the CRA portals using services like My Payment (with a debit card) or by setting up a Pre-Authorized Debit (PAD).
- Log in to your CRA My Account or My Business Account.
- Find the “Accounts and payments” section.
- Click on “Make a payment.”
- Follow the on-screen instructions to choose your payment method and amount.
Common Errors and How to Avoid Them
- Wrong Account Number: Double-check that you’ve entered the correct SIN or BN. A single wrong digit can send your payment to the wrong place.
- Wrong Payment Type: When paying business taxes through online banking, ensure you select the correct payee (e.g., GST/HST vs. payroll). Sending funds to the wrong business account requires a manual transfer by the CRA, which can take time.
- Credit Card Misconception: The CRA does not directly accept credit cards. You can only pay CRA online with a credit card through third-party service providers, which charge a fee for the transaction.
If you’re unsure about any step, it’s always best to seek professional advice. Our team at Padgett has over 35 years of experience helping Canadian businesses navigate these processes. You can find an office near you for personalized support.
Timing of Withdrawals: When Does the Money Come Out?
Understanding payment timing is key to avoiding late fees.
- Online Bill Payments: Payments made through your bank are typically processed within 1-3 business days. It’s wise to make your payment at least three days before the deadline.
- Pre-Authorized Debit (PAD): When you set up a PAD through your CRA account, you choose the exact date the funds are withdrawn. However, you must set this up at least five business days before the first payment date.
- CRA’s My Payment: Payments made with a debit card via My Payment are generally considered received on the same business day if made before 10PM local time. Payments after this time or on weekends/stat holidays will be considered received on the next business day
Simple Decision Tree: Which Way Should I Pay?
Use this simple tree to decide on the best payment path:
1. Is this for your personal T1 income tax?
- Yes: Use your CRA My Account or select the personal tax payee in your online banking using your SIN.
- No: Go to step 2.
2. Is this for your registered business (GST/HST, payroll, corporate tax)?
- Yes: Use your CRA My Business Account or select the specific business payee in your online banking using your Business Number (BN).
- No: Re-evaluate the type of payment. You may need to contact the CRA or a tax professional for guidance.
Making timely and correct payments to the CRA is a fundamental part of financial responsibility. By using the right portal and double-checking your information, you can ensure your payments are credited correctly and on time.
For direct access, visit the official CRA sign-in page for both My Account and My Business Account.
This article provides general information and is not a substitute for professional tax advice. For guidance specific to your situation, consult with a qualified accountant at one of our local Padgett offices.