If you owe income tax to the Canada Revenue Agency (CRA) and can’t pay it all at once, don’t panic. The CRA allows you to make tax payments in instalments through a variety of options in 2025. This guide explains how Canadian personal income taxpayers can stay compliant while managing cash flow with structured instalment arrangements.
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💳 What Are CRA Tax Instalments?
Tax instalments are periodic payments made to the CRA to cover your expected tax bill for the current year. If you owed more than $3,000 in tax last year (or $1,800 in Quebec), the CRA may require you to make instalment payments this year.
📅 CRA Instalment Due Dates for 2025
- March 15, 2025
- June 15, 2025
- September 15, 2025
- December 15, 2025
Missing these dates may result in interest charges and instalment penalties.
💡 CRA Payment Options for Instalments
1. Pre-Authorized Debit (PAD)
- Schedule automatic withdrawals from your bank account
- Set up through CRA My Account
- Flexible dates and amounts
2. Online Banking
- Add “CRA (revenue) – tax instalment” as a payee
- Use your Social Insurance Number (SIN) as account number
- Payment is processed immediately
3. CRA My Payment
- Pay directly from a debit card or Interac Online
- No need for a CRA account
- Quick and secure
4. Interac e-Transfer (New Option in 2025)
- CRA now supports e-Transfers from select financial institutions
- Must use the CRA email address provided in your My Account portal
5. In-Person Payment via Canada Post
- Generate a QR code online
- Pay with cash or debit at the counter
- Some service fees may apply
6. Mail a Cheque with Remittance Voucher
- Send a cheque payable to “Receiver General for Canada”
- Include your remittance voucher and SIN
- Mail to the appropriate CRA tax centre
🔄 Setting Up a Payment Arrangement for Past-Due Taxes
If you’re already late and can’t pay your full balance, the CRA allows you to request a payment arrangement. Here’s how:
- Log in to CRA My Account and use the “Request a payment arrangement” tool
- Or call the CRA at 1-888-863-8657 to speak with a collections officer
- You’ll need to propose a monthly amount and duration
- Interest continues to accrue, but collections action may pause
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⚠️ What Happens If You Miss Instalment Payments?
- Interest on late or missing payments at prescribed CRA rates
- Instalment penalties if your total interest exceeds $1,000/year
- Future tax refunds can be applied to outstanding balances
- Enforcement actions like wage garnishment or bank freezes (in severe cases)
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🗨 Final Thoughts: Pay Smart and Stay Compliant
If your tax bill feels overwhelming, the CRA has systems in place to help you manage payments without falling into collections. Use available tools like CRA My Account, PAD setup, or online banking to stay on top of your tax obligations in 2025.
Tip: Always communicate with the CRA early—before interest and penalties pile up!
Disclaimer: This article is for informational purposes only. For legal or financial advice tailored to your personal situation, consult a certified tax professional or reach out to the CRA directly.
