Should You Pay Your Taxes With a Credit Card in Canada? The Fee Math
You can pay the CRA with a credit card, but only through a third-party service that charges you a fee for it. Whether that fee buys you anything depends on your rewards rate and on whether you can pay the card off.
- Rates checked November 2, 2026
- By Krish Paul
- 7 min read
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This guide runs the numbers on a $5,000 tax bill: the fee, what rewards give back, and what happens if you carry the balance instead of paying it.
The short answer
For most people, paying taxes with a credit card costs more than it returns. PaySimply charges 2.49%, or $124.50 on a $5,000 payment, and a card earning 1% back only returns about $51 of that. If you cannot pay the card in full, the CRA’s 7% interest is far cheaper than a card charging about 21%.
The main exception is a welcome bonus. If a tax payment is what gets you over a minimum spend, the bonus can be worth more than the fee. Otherwise, online banking or the CRA’s My Payment service cost you nothing in CRA fees.
How credit card tax payments work
The CRA does not take credit cards itself. Its third-party payment page says credit card payments “can currently only be made through PaySimply or Plastiq.” These companies charge your card, then send the money and your remittance details to the CRA.
The CRA’s own My Payment service looks similar but takes debit only. It accepts Visa Debit and Debit Mastercard, and Interac debit through Apple Pay, Google Pay or Konek. The CRA states it “does not charge a fee for using this service.” Your bank may have its own fees or limits.
What each payment method costs on a $5,000 bill
| Payment method | Listed fee | Fee on $5,000 | Net cost with 1% back |
|---|---|---|---|
| Online banking | No CRA fee | $0 | $0 |
| CRA My Payment (debit) | No CRA fee | $0 | $0 |
| PaySimply, Interac e-Transfer | 1.0% | $50.00 | No card rewards |
| PaySimply, credit card | 2.49% | $124.50 | $73.25 |
| Plastiq, credit card | 2.99% | $149.50 | $98.00 |
Hypothetical $5,000 payment. Fees from PaySimply’s CRA page and Plastiq’s pricing page, checked November 2, 2026. Assumes the fee is charged to the card on top of the payment and that rewards are earned on the full amount charged.
Plastiq’s pricing page lists its 2.99% card fee in general terms and notes that payments “may incur additional fees” based on where the card was issued. It does not show a separate CRA price, so confirm the total before you pay.
Do rewards cover the fee?
Only on a very rich card. When the fee goes on the card too, you earn rewards on $5,124.50 instead of $5,000. That helps a little, but not enough. Here is what a $5,000 PaySimply payment costs after cash back:
| Cash back rate | Rewards earned | Net cost after rewards |
|---|---|---|
| 0.5% | $25.62 | $98.88 |
| 1% | $51.25 | $73.25 |
| 1.5% | $76.87 | $47.63 |
| 2% | $102.49 | $22.01 |
Hypothetical. Net cost is the $124.50 fee minus rewards on $5,124.50. Break-even is a 2.43% return with PaySimply and 2.90% with Plastiq.
That is a high bar. The Tangerine Money-Back Credit Card, for example, pays 0.5% back outside its chosen 2% categories. The CIBC Dividend Visa Infinite pays 1% on everything else. Before you count on rewards, ask your issuer how the payment will post and whether it earns them. If a payment were ever treated as a cash advance, it would be priced very differently, as our cash advance cost guide shows.
When a welcome bonus changes the math
The one case where a card payment often wins is a minimum spend requirement. Say, hypothetically, a new card offers a bonus worth $300 after $5,000 of spending in three months, and you would not reach that amount otherwise. Paying a $5,000 tax bill through PaySimply costs $124.50, so you come out ahead by roughly $175 plus regular rewards. Use the real bonus terms on the issuer’s page, and only do this if you can pay the statement in full.
Can’t pay the bill? Compare the interest
Some people reach for a card because they cannot pay the CRA in full by the deadline. That usually backfires. The CRA’s prescribed rate on overdue taxes is 7% from October 1 to December 31, 2026, and it has been 7% in every quarter of 2026. The CRA says it charges compound daily interest starting the day after the due date. Compounded daily, 7% works out to about 7.25% a year.
Card rates are much higher. Tangerine lists a 20.95% purchase rate, and you also pay the fee up front. Here is a $5,000 balance carried for 182 days either way:
Owing the CRA costs $177.58 in interest. Putting it on a 20.95% card through PaySimply costs $688.61, which is $511.03 more. The Plastiq route costs $716.36. These figures assume no payments for 182 days and daily compounding for both, which is a simplification: a card requires minimum payments and issuers calculate interest their own way.
Two cautions. First, filing late adds a separate penalty of 5% of the balance owing plus 1% per full month late, up to 12 months, so file on time even if you cannot pay. Our guide to the late filing penalty has the full math. Second, if a card balance already carries interest, see how the grace period rule affects new charges before adding more.
Instalment payments and the December 15 deadline
If you pay tax by instalments, the next due date is December 15. The CRA’s instalment page lists March 15, June 15, September 15 and December 15. You generally have to pay instalments for 2026 if your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and in either 2025 or 2024.
Late or short instalments are charged instalment interest compounded daily at the prescribed rate. A separate penalty applies only if your instalment interest for 2026 is more than $1,000. The same math applies here: a card payment adds a fee of 2.49% or more to avoid interest that runs at 7% a year.
Timing matters more with a third party
A third-party payment is not instant. The CRA says the date it counts as paid “varies based on the payment service provider” and tells you to set it up “well in advance” of the due date. PaySimply says the CRA credits your account on the day you pay. Payments usually show in your CRA account within 2 to 3 business days. Online banking payments count as paid the same or next business day, depending on your bank.
Quick check before you pay by card
A credit card tax payment only makes sense if all three are true.
- You will pay the statement in fullCarrying the balance at a card rate such as 20.95% wipes out any reward many times over.
- Your return beats the feeYou need more than 2.43% back with PaySimply, or a bonus worth more than the fee.
- You pay earlyLeave several business days before the CRA due date, since provider timing varies.
How to decide in five steps
- Find the exact amount. Check your CRA account or notice of assessment for the balance or instalment due.
- Work out the fee. Multiply the payment by 2.49% for PaySimply or 2.99% for Plastiq.
- Work out your rewards. Multiply the total charged by your card’s rate on this type of payment, after confirming it earns rewards.
- Compare. If rewards or a bonus beat the fee and you can pay in full, the card can work. If not, use online banking or My Payment.
- If you cannot pay in full, pay what you can directly to the CRA and file on time. Then clear the rest quickly, starting with your highest-rate debt, as in our debt avalanche guide.
Frequently asked questions
Can you pay the CRA with a credit card?
Not directly. The CRA does not accept credit cards itself, but it lists two third-party providers that do: PaySimply and Plastiq. Both charge you a service fee on top of the payment, and the CRA’s own My Payment service accepts debit cards only.
How much does it cost to pay taxes with a credit card in Canada?
PaySimply lists a 2.49% processing fee for card payments to the CRA, so a $5,000 payment costs $124.50 in fees. Plastiq lists a 2.99% card fee, which works out to $149.50 on the same amount. Online banking and My Payment have no CRA fee.
Is paying taxes with a credit card worth it for the points?
Usually not. With PaySimply’s 2.49% fee, your card would need to earn about 2.43% back on the full charge just to break even. On a card earning 1% back, a $5,000 payment still costs you $73.25 after rewards. It can make sense only if the payment unlocks a welcome bonus worth more than the fee.
Is it cheaper to put a tax bill on a credit card or owe the CRA?
If you cannot pay the card in full, owing the CRA is usually cheaper. The CRA charges 7% on overdue taxes from October 1 to December 31, 2026, compounded daily. In our example, carrying $5,000 for 182 days costs $177.58 with the CRA versus $688.61 on a 20.95% card through PaySimply, fee included.
When is a credit card payment to the CRA considered paid?
The CRA says the date your payment counts as paid varies by provider, and it tells you to pay well before the due date. PaySimply says the CRA credits your account on the day you pay. Payments usually show in your CRA account within 2 to 3 business days.
- Sources, checked November 2, 2026: CRA: Pay through a third-party payment service provider (modified 2026-07-21); CRA: Make a payment (modified 2026-10-28); CRA: My Payment (modified 2026-10-30); CRA: Pay through online banking (modified 2024-05-09); CRA: Prescribed interest rates, fourth quarter 2026; CRA: Interest and penalties on late taxes (modified 2026-01-20); CRA: Income tax instalments, who has to pay and interest and penalty charges (modified 2026-01-20); PaySimply: Pay the CRA; Plastiq: Pricing; Tangerine Money-Back Credit Card; CIBC Dividend Visa Infinite card page.
- Method: All figures use a hypothetical $5,000 payment. Fees are the listed percentage of $5,000. Rewards are earned on the payment plus the fee. Interest over 182 days uses daily compounding, (1 + rate/365)^182 minus 1, and was checked with a day-by-day loop in Python.
Important: This guide is general information, not financial or tax advice. Fees and rates can change, and card issuers set their own rules for how third-party payments post and earn rewards. Gizly is not paid by any company mentioned here. See our affiliate disclosure.
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How this page was made: Gizly uses AI tools to help research and draft its guides. Krish Paul, the editor, is responsible for what Gizly publishes. Spot an error? Tell us and we will fix it.
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