Can you pay your taxes with a credit card in Canada?

By Athanasia Nikolakakis | Published on 29 Jun 2023

Credit Cards , How do credit cards work

A person contemplating tax and credit card matters with a thoughtful expression

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Credit cards have become the go-to payment method for many — and for good reason. If you pay off your balance in full every month, a credit card allows you to save money and earn valuable rewards. Unfortunately though, when tax season comes around, it becomes harder to tell if your credit card is a worthwhile tool.

At the moment, the Canadian Revenue Agency (CRA) does not directly accept credit card payments for income taxes. Similarly, many municipalities do not accept credit card payments for property taxes. Several third-party services allow you to get around most of these restrictions. However, whether you use a third-party service or not, paying your taxes by credit card usually involves additional fees. As a result, it is important to carefully consider if paying your taxes with a credit card is a good fit given your personal situation.

The perks and drawbacks of paying taxes with a credit card

Generally, there are a number of advantages to paying your taxes via a credit card. For example, as frustrating as it is that taxes are usually a major expense, credit cards can help you make the most of the situation. If your credit card gives you a high percentage of rewards on each purchase, a multi-thousand dollar tax bill can represent significant savings.

A high tax bill can also allow you to take full advantage of a new credit card’s welcome offer. Many top-tier welcome offers come with multi-thousand dollar minimum spends. Depending on your situation, it might not be realistic to meet these requirements. However, a large tax bill may be enough to help you earn additional savings. This strategy is especially helpful for those who churn credit cards, as it ultimately allows you to qualify for more rewards.

Additionally, paying your taxes by credit card provides you with a few extra days to get the necessary funds together. Of course, it is simplest to set money aside for future tax payments throughout the year. However, unexpected situations may disrupt your plans. Whether you are waiting for a direct deposit to come in or need a few days to transfer funds between your own accounts, a credit card’s 21 day interest free period can save you from having to pay late fees.

Unfortunately though, there is one major drawback to paying your taxes via credit card: the fees. If your municipality accepts credit card payments directly, they may charge a ~2% convenience fee. If they do not support credit card payments, you will need to use a third-party service — generally, these charge 2-3% in service fees. Depending on your situation, these fees may end up costing more than your credit card provides in rewards — do the math beforehand to avoid regret later on.

Third-party companies may allow you to pay with a credit card

Despite the fact that the CRA and many municipalities do not directly accept credit cards for tax payments, a number of third-party companies (including PaySimply and Plastiq) will accept credit card payments and then pay your taxes on your behalf. As mentioned above, service fees generally range from ~2-3% (and vary depending on where the payment will be sent).

It is not always easy to determine which company is able to send payments to a particular tax organization. For example, many municipalities partner with a specific third-party company to collect property taxes. As such, you may need to do some research about local requirements before using a third-party app to pay your taxes.

Paying income taxes with a credit card

As of 2023, the CRA does not directly support credit card payments for income taxes. However, their website notes that Canadians can use PaySimply or similar third-party services to pay their taxes via credit card. Note that Plastiq no longer sends payments to the CRA, leaving you without much of a choice of service provider.

Securely tax and bills online with Paysimply

If you wish to pay your income taxes via PaySimply, first navigate to their CRA payment portal by searching “income tax” on the site and then selecting “Canada Revenue Agency (Individual, Business, CEB)” from the menu. You will then be prompted to enter your social insurance number (SIN), the amount of money that you would like to pay, and your payment details.

PaySimply will allow you to pay via Visa, MasterCard, American Express, or Union Pay. Keep in mind that you will also have to pay a 2.5% convenience fee. Any payments made via PaySimply will take up to 8 business days to reach your CRA account.

Of course, it is important to keep in mind that paying income taxes via any third-party service comes with an extra layer of risk. Traditionally, when you send money to the CRA through your bank’s online bill service, you have to enter your SIN as the account number. As a result, in order for a third-party to pay your taxes on your behalf, you have to provide them with your SIN. Crucially, PaySimply’s help center notes that your SIN is “encrypted upon submission” and will only be shared with the CRA. However, if you are not comfortable with giving out your SIN, you may want to find a different payment method. Similarly, if you do use a third-party app to pay your income tax, be sure it is trustworthy.

Paying property taxes with a credit card

No matter where you live, paying your property taxes with a credit card will take a bit of research. Each municipality sets their own payment terms: some may accept credit cards in-person and online, others may partner with third-party companies who facilitate virtual credit card payments, and some may refuse to accept credit card payments outright.

Generally, most Canadians who want to use a credit card to pay their property taxes should at the very least be able to use a third-party service to do so. However, Plastiq’s refusal to send payments to the CRA is a prime (if rare) example of the fact that some companies may refuse to facilitate payments for certain financial bodies. To avoid last-minute frustration, make sure you understand your payment options well in advance.

Canadian municipalities that discuss credit card payments on their website

Depending on your municipality of residence, paying your property taxes with a credit card may be straightforward. Quite a few municipalities either directly accept credit card payments or have partnered with a company that facilitates online credit card payments. Similarly, some municipalities make it a point to note at least one third-party company that allows constituents to pay their property taxes via credit card, even if they have not directly partnered with that company. If you live in one of these municipalities, it is generally easiest to follow the instructions listed on their website.

To help with your research, we have rounded up a list of Canadian municipalities whose websites mention credit card payments (and, where applicable, third-party payment companies). Please note that this information was compiled in June 2023; over time, various municipalities may decide to start or stop accepting credit card payments. When in doubt, please consult each municipality’s site.

Alberta

British Columbia

Manitoba

New Brunswick

All New Brunswick residents are eligible to pay their property taxes via credit card through PaySimply.

Newfoundland and Labrador

Northwest Territories

Nova Scotia

Nunavut

Residents of Nunavut (who do not live in Iqaluit) are able to directly pay their taxes via credit card. Those who live in Iqaluit may use a third-party service to pay their taxes, but the municipality does not provide specific instructions on how to do so.

Ontario

Prince Edward Island

No Prince Edward Island municipalities mention credit card payments on their website.

Quebec

Mont-Tremblant

Saskatchewan

Yukon

Rural Yukon residents are eligible to directly pay their property taxes with a credit card online.

Paying property taxes with a credit card in other municipalities

If your municipality does not offer explicit instructions on how to pay your property taxes with a credit card, you may still want to check if you can do so via a third-party company such as PaySimply or Plastiq. As mentioned above, please beware that this process can take around 8 business days, so it is important to plan well ahead of your tax deadline.

Paying taxes with PaySimply

A screenshot of the paysimply page where you find a complete list of cities, municipalities, utilities, schools and more that you need to pay for

To pay your property taxes with PaySimply, enter your municipality’s name in the search bar at the top of the website. Then, select whichever payee option corresponds to your local property taxes. You will then be taken to a portal that allows you to enter your contact information, account number, tax amount, and payment details.

PaySimply accepts Visa, MasterCard, American Express, and Union Pay. Payments are subject to a 2.5% fee.

Plastiq

Before sending any funds through Plastiq (or viewing their list of supported payees), you will need to sign up for an account. Once you have logged in, click on the blue checkmark to start a new payment, then enter your municipality’s name and select the relevant tax-oriented payee option from the drop down menu. Note that you may have to hit enter while typing your payee name for the drop down menu to appear. Once you have selected a payee, you will be asked to provide your account number, payment amount, and credit card details.

Plastiq accepts Visa, Mastercard, Discover, Diners Club, and JCB credit cards. Payments are generally subject to a 2.9% fee.

FAQs About Paying Taxes With A Credit Card in Canada

It can be confusing to figure out how to pay your taxes with a credit card. If you still have some questions, check out our list of frequently asked questions below.

Can I pay my income tax with a credit card in Canada?

The CRA does not accept credit card payments. However, you can use a third-party service such as PaySimply to pay your income tax with a credit card. Generally, you will pay your taxes (plus a small fee) to the third-party company via credit card, then they will pay the CRA. Please note that this process can take around 8 business days.

Can I pay my property tax with a credit card in Canada?

Depending on where you live, you may be able to pay your property taxes via credit card. However, each municipality ultimately sets its own payment terms. You can find a list of municipalities that either accept credit card payments directly or tell their constituents that they may use a third-party service to do so above.

Can I pay my Toronto property tax with a credit card?

Yes, Toronto residents may pay their property taxes with a credit card through MyToronto Pay. Please note that a convenience fee (currently 2.35%) will apply.

Can I pay my property tax with a credit card in BC?

Depending on your municipality, you may be able to pay your BC property tax via credit card. Currently, the municipalities of Abbotsford, Burnaby, Delta, Kamloops, Kitimat, Lake Country, Maple Ridge, Osoyoos, Port Moody, Trail, and Victoria either directly support credit card payments or accept payments from third-party companies who process credit card charges. To learn more about your municipality’s rules, please click on the respective link.

Can I pay my property tax with a credit card in Ontario?

Many — but not all — Ontario residents are eligible to pay their property taxes with a credit card. Currently, the municipalities of Ajax, Aurora, Brant, Burlington, Caledon, Cambridge, Chatham-Kent, Clarington, Clearview, Coburg, Elizabethtown-Kitley, Fort Erie, Guelph, Haldimand, Halton Hills, Kawartha Lakes, Kenora, Kingston, Kingsville, Lakeshore, Leamington, Markham, Meaford, Middlesex Centre, Milton, Muskoka Lakes, Niagara Falls, Oakville, Ottawa, Owen Sound, Peterborough, Port Colborne, Richmond Hill, Thorold, Thunder Bay, Toronto, Waterloo, and Woolwich either allow their constituents to directly pay their property taxes via credit card or support the use of third-party apps (which receive funds from constituents via credit card and then pay the municipality on their behalf). For municipality-specific instructions, please click on the respective link.

Athanasia Nikolakakis

Athanasia is a personal finance writer. Whenever she has to make a purchase, she takes pride in hunting down stackable discounts and finding great deals. She recently graduated from the University of Toronto with a Bachelor of Arts in English and Cinema Studies.