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Can You Pay Taxes With a Credit Card in Canada? (2026)

By Rob Cosman, CPA · February 28, 2020 · Back to Blog

Yes. The CRA doesn’t take credit cards directly, but it authorizes third-party processors that do. As of 2026, credit card payments can only go through two of them: PaySimply and Plastiq. PaySimply accepts Visa, Mastercard, and American Express and charges 2.49% of the payment; Plastiq advertises the same 2.49% rate for CRA payments.

The fee is the whole decision.

Pay $10,000 of corporate tax by card and you hand the processor $249. If your card earns less than that back in rewards, or you can’t clear the balance before interest starts, you’ve paid extra for nothing. Here’s how the math shakes out in 2026.

How paying the CRA by credit card works

You make the payment on the processor’s site, not the CRA’s. The processor takes your card, attaches your SIN or business number to the payment, and remits it to the CRA on your behalf. A wide range of CRA payment types qualify: personal income tax and instalments, corporate T2 balances and instalments, GST/HST remittances, payroll source deductions, benefit repayments, the Underused Housing Tax, and certain excise duties.

Both processors say the payment gets dated the day you pay. The CRA’s own guidance is less generous: delivery time depends on the provider, the amount usually shows in your CRA account within 2 to 3 business days, and you’re responsible for it arriving on time. Don’t cut it to deadline day.

What it costs in 2026

One change from earlier years: the CRA’s current provider list names only PaySimply and Plastiq for credit cards.

When the 2.49% fee is worth paying

You’re chasing a sign-up bonus. Premium cards often want $3,000 to $10,000 of spend in the first three months to release a welcome bonus worth $500 or more. A tax bill gets you there in one transaction, and the bonus usually beats the fee several times over. This is the most reliable way the math works.

Your card genuinely earns more than 2.49%. A few cards do, at least on some redemption paths. Run the numbers on what you actually redeem points for, not what the marketing page says they’re worth. If your true earn rate is 2% cash back, you’re paying half a point for nothing.

You need the float. A credit card gives you 21 to 55 days before the balance is due, depending on your billing cycle. The CRA’s interest rate on overdue amounts is 7% for the second half of 2026, compounded daily, and it resets every quarter. A balance owing also sits on your compliance record. If cash is tied up in inventory, a one-time 2.49% fee that you clear inside the grace period can be cheaper than open-ended CRA interest, and much cheaper than a merchant cash advance.

When it’s a mistake

Here’s the trap: all of that math assumes you pay the card off inside the grace period. Carry the balance and a typical 21% card rate runs roughly three times the CRA’s current arrears rate, so you’ve replaced a bad debt with a worse one and paid a 2.49% toll for the swap.

It’s also a mistake when the cash is sitting in your account anyway. Online banking and pre-authorized debit cost nothing, and a 1% cash-back card loses money against a 2.49% fee every single time.

Frequently asked questions

Can you pay GST/HST with a credit card?

Yes. GST/HST remittances are on the accepted list at both PaySimply and Plastiq, with the same 2.49% fee. For a registered business the fee is generally a deductible expense, which softens the cost a little.

Does the CRA accept credit cards directly?

No. The CRA has never taken credit cards itself, in Canada or from abroad. Card payments only move through its authorized third-party processors, and right now that means PaySimply or Plastiq.

Is the credit card processing fee tax deductible?

If you’re paying business taxes such as corporate tax, GST/HST, or payroll remittances, the fee is generally deductible as a business expense. The fee on a personal income tax payment isn’t.

How long does a credit card tax payment take to reach the CRA?

The processors date the payment the day you make it, and the CRA usually shows it in your account within 2 to 3 business days. If it still hasn’t appeared after 5 business days, follow up with the processor. Build in buffer ahead of any deadline.

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