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The 2026 Spring Economic Update delivered by the Minister of Finance on April 28 included a number of targeted tax relief measures for Canadian individual taxpayers. Some of those measures are summarized below.

The 2026 Spring Economic Update delivered by the Minister of Finance on April 28 included a number of targeted tax relief measures for Canadian individual taxpayers. Some of those measures are summarized below.

Changes to Disability Tax Credit certification program

Canadians who are affected by a severe and prolonged impairment in physical or mental functions which significantly restricts their ability to carry out one or more basic activities of daily life can claim a non-refundable federal tax credit. For 2026, the amount of that Disability Tax Credit (DTC) is $10,341, which provides a reduction in federal tax of up to $1,448. Such individuals can also claim a similar credit for provincial tax purposes, with the amount dependent on the taxpayer’s province of residence.

The DTC is a valuable credit for those who are eligible, and obtaining a valid DTC certificate also enables such individuals to have access to a number of other benefit and credit programs for disabled individuals. However, the administrative process of obtaining such a certificate is often very difficult and time-consuming. Under current rules, a qualified medical practitioner must complete a lengthy form which requires not just the patient’s diagnosis, but extensive details on how their disability affects and restricts their ability to carry out activities of daily life. That form must be submitted to the Canada Revenue Agency as part of the application for a Disability Tax Credit Certificate, and a significant amount of time can elapse before a decision on that application is made and communicated to the individual. And, of course, individuals who do not have a family doctor may not have anyone who can complete the necessary medical assessment which is a required part of their DTC Certificate application.

The 2026 Spring Economic Update proposes changes to the DTC certification program in two areas. First, the listing of the types of impairments which can be certified by a medical professional other than a medical doctor has been expanded. Following that change, which is effective for DTC certificates issued after 2026, occupational therapists, physiotherapists, speech-language pathologists, and podiatrists will be able to certify additional specified types of impairments for purposes of a DTC Certificate application.

The second change provides that where an individual has been diagnosed with any one of a lengthy list of medical conditions (including such conditions as Alzheimer’s disease, severe intellectual disability, paraplegia, schizophrenia, or traumatic brain injury), a DTC application will require only that a medical practitioner certify that the individual has that medical condition. Unlike the current application, there will be no requirement for the medical practitioner to provide a detailed summary of how that medical condition affects the ability of an individual to carry out basic tasks of daily life. This change is effective for the 2026 and subsequent tax years.

The measures contained in the 2026 Spring Economic Update with respect to the Disability Tax Credit are purely administrative in nature and do not change the disability criteria which must be met to qualify for the DTC. The CRA will continue to have authority to ask for additional information to verify that these criteria are met.

Additional information on the changes to the Disability Tax Credit certification process can be found on the Finance Canada website at Tax measures: Supplementary information | Spring Economic Update 2026.

Changes to Home Buyers’ Plan

The federal Home Buyers’ Plan allows an eligible first-time home buyer to withdraw up to $60,000 from their registered retirement savings plan (RRSP) on a tax-free basis. (Eligible home buyers purchasing as joint owners can each withdraw up to $60,000.) All amounts withdrawn from an RRSP under the HBP must be repaid to that RRSP over a 15-year period, with such repayments starting in the second year following the year the withdrawal was made. Where amounts are not repaid as required, they are included in the taxpayer’s income for the year.

In the 2024 Federal Budget, changes to the HBP were announced which would permit HBP participants to defer any repayment of funds to their RRSP until the fifth year following the date of withdrawal. That change was effective for withdrawals made between January 1, 2022 and December 31, 2025.

In the 2026 Spring Economic Update the government announced that the ability to defer repayments under the HBP until the fifth year following the year of withdrawal would be extended to apply to HBP participants making a first withdrawal under the Plan up to the end of 2028.

More information on the changes to the HBP is available at Tax measures: Supplementary information | Spring Economic Update 2026.

Labour mobility deduction for tradespeople

Eligible tradespeople working in the construction industry are able to claim a deduction for expenses incurred in connection with one or more temporary work-related relocations. Under existing rules, such individuals can claim up to $4,000 in eligible temporary relocation expenses per year, with the deduction for each such temporary work relocation limited to 50% of employment income earned at that temporary location. As well, to qualify for the deduction, a “distance rule” provides that the individual must take up temporary lodging in Canada which is at least 150 kilometres closer to the temporary work location than their ordinary residence.

Effective for the 2026 and subsequent tax years, changes have been made to increase the maximum annual deduction from $4,000 to $10,000 (with that amount to be indexed annually after 2026). As well, the distance rule has been modified to provide that the individual’s temporary lodging in Canada must be at least 120 kilometres closer to a temporary work location than their ordinary residence.

Information on the changes can be found on the Finance Canada website at Tax measures: Supplementary information | Spring Economic Update 2026.

For most taxpayers, the worst-case outcome when completing their tax return for the previous year is finding out that they owe an additional tax amount to the federal government. However, for Canadians who are receiving Old Age Security (OAS) benefits, there can be additional bad news. For such Canadians, one of the calculations made as part of preparing a tax return is a determination of whether the taxpayer received OAS benefits during the previous year to which they were not entitled. If that’s found to be the case, the taxpayer will be required to repay a portion of benefits already received – and likely already spent.

For most taxpayers, the worst-case outcome when completing their tax return for the previous year is finding out that they owe an additional tax amount to the federal government. However, for Canadians who are receiving Old Age Security (OAS) benefits, there can be additional bad news. For such Canadians, one of the calculations made as part of preparing a tax return is a determination of whether the taxpayer received OAS benefits during the previous year to which they were not entitled. If that’s found to be the case, the taxpayer will be required to repay a portion of benefits already received – and likely already spent.

Many OAS recipients – especially those who have only recently begun to receive such benefits – are unaware that OAS benefits received may have to be repaid to the federal government, and even fewer are aware of exactly how and when they could become subject to that repayment requirement. To understand that process, and how it is administered, a bit of background is helpful.

The Old Age Security program is one of the two major public retirement income programs in Canada – the other being the Canada Pension Plan. The two programs differ in two significant ways. First, while the Canada Pension Plan is funded by employer and employee contributions, OAS benefits are financed entirely out of general federal government revenues. Second, CPP retirement benefits are based on contributions made throughout the recipient’s working life and are unaffected by their income while receiving those retirement benefits. Recipients of OAS benefits can, however, be required to repay some or all of those benefits where their net income exceeds a prescribed threshold.

That “OAS recovery tax” or clawback, as it is universally known, is administered on a one-year time lag basis. Anyone who received OAS benefits during 2025 and had net income for that year over a specified dollar amount threshold will be required to repay a portion (or all) of the OAS benefits which were received during 2025.

The federal government becomes aware of an individual’s net income for 2025 only once the tax return for that year is filed, usually by April 30 of 2026, when information on that return will disclose that OAS benefits received must be repaid. That repayment does not have to be made when the return is filed: rather, the overpayment is recovered by reducing the amount of OAS benefits paid to the recipient throughout the next benefit year.

For example, an individual who received OAS benefits during 2025 and had net income for the year over $93,454 will be subject to the clawback. They must repay OAS amounts received at a rate of 15 cents (or 15%) of every dollar of income over the clawback income threshold, as in the following simplified example.

The OAS clawback threshold for 2025 is $93,454.

If the individual’s net income in 2025 was $98,500, then repayment would be 15% of the difference between $98,500 and $93,454:

$98,500 - $93,454 = $5,046

$5,046 x 0.15 = $756.90

The individual would have to repay $756.90 of OAS benefits received.

Consequently, in the following benefit year (which covers OAS benefit payment dates from July 2026 to June 2027), OAS benefits received will be reduced by $63.08 per month ($756.90 divided by 12 months).

The OAS clawback is a perpetual irritant to those affected by it, perhaps because of the sense that they are being penalized in retirement for having lived frugally or been good managers of their finances during their working years, in order to put aside savings for a financially comfortable retirement, or to leave an inheritance for their children. While any sense of grievance can’t alter the reality of the OAS clawback, there are strategies which can be put in place to either minimize or even eliminate one’s exposure to that clawback. Like most individual tax planning, many of those planning considerations are better addressed earlier in life, prior to retirement: however, it’s not too late, once one is already receiving OAS, to take advantage of strategies to avoid or minimize the clawback in future years.

In all cases, no matter what strategy is employed, the goal is to “smooth” one’s income from year to year, so that net income for each year comes in under the OAS clawback threshold and, not incidentally, minimizes exposure to the higher federal and provincial income tax rates which in most cases apply once taxable income approaches  $100,000. Some of the available strategies are outlined below.

Managing the amount and timing of RRIF withdrawals

Taxpayers who have a registered retirement income fund (RRIF) and are age 65 or over must make a minimum required withdrawal (MRW) from that RRIF each year. The amount of the MRW is a percentage of the total amount in the RRIF and is based on the taxpayer’s age.

As the name suggests, the taxpayer has no options when it comes to the MRW, which must be made each year in the required amount, with that amount included in taxable income for the year.

Once the MRW is made, however, any additional RRIF withdrawals during the year are entirely the choice of the taxpayer, and that choice can be made, or changed, at any time. Taxpayers can and should monitor both the amount and the timing of those withdrawals. All amounts withdrawn from an RRIF are fully taxable in the year they are withdrawn, without exception, and such funds can never be re-contributed to the RRIF. As well, all such withdrawals will be included in net income for purposes of determining the taxpayer’s eligibility for OAS and a number of other tax credit and benefit programs.

From a financial planning perspective, the optimal annual withdrawal from an RRIF is the amount which, when combined with other retirement income sources, enables the taxpayer to live a comfortable lifestyle while minimizing the amount of income tax they must pay, or their exposure to the OAS clawback.

Retirement income needs fluctuate over time, with expenses usually higher in the earlier retirement years and then decreasing. As well, life circumstances change (a spouse dies, a family home is sold to downsize to a smaller and less costly residence) and retirement income needs change as a consequence of those changed life circumstances. Many taxpayers set the amount of annual RRIF withdrawals when the plan is set up at age 71 and that arrangement simply remains in place. However, optional RRIF withdrawals should be based, not on a fixed, unchanging amount, but the amount which fits current life circumstances and income requirements.

Consequently, a withdrawal plan in which the MRW is made at the beginning of the calendar year and further withdrawals are made on an as-needed basis will ensure that the taxpayer has sufficient funds to support a comfortable retirement while minimizing the risk of negative tax and clawback consequences that can follow where amounts in excess of annual income requirements have been withdrawn unnecessarily from the RRIF.

Similarly, where a large, one-time RRIF withdrawal is planned – whether early in retirement to pay for long-deferred travel plans or, in later years, to finance home renovations needed to accommodate changed health circumstances – splitting that withdrawal between two taxation years (for instance, one-half in December of 2026 and one-half in January 2027) will minimize net income and consequently exposure to both a higher tax rate and the OAS clawback in both years.

Sheltering investment income within a Tax-Free Savings Account (TFSA)

Taxpayers who are over the age of 71 have relatively few available means to shelter income from tax. Investment income earned within an RRIF is of course not taxable as it is earned, but all RRIF withdrawals, whether they represent amounts saved or investment income earned, are fully taxed on withdrawal. As well, investment income of any kind subsequently earned on such withdrawals will become taxable income in the year that investment income is earned.

Practically speaking, the best strategy (and for those over age 71, the only strategy) to shelter investment income earned on amounts withdrawn from an RRIF is to contribute those RRIF withdrawals to a Tax-Free Savings Account (TFSA), to the extent that the taxpayer has contribution room. Unlike RRIFs and RRSPs, a TFSA can be opened and held by a taxpayer of any age. Amounts contributed to a TFSA are not deductible from income, but all investment income earned within the TFSA accumulates free of tax. Finally, any and all amounts withdrawn from a TFSA (whether original contributions or investment income earned) are not taxed on withdrawal, and are not included in income for purposes of the OAS clawback.

Especially where amounts withdrawn from an RRIF are substantial, the amount of investment income earned throughout the year on those withdrawals can have a real impact on an individual’s tax liability. Contributing RRIF withdrawals to a TFSA where such funds can be invested, and withdrawn as needed, will eliminate that liability.

Detailed information on how to determine one’s contribution limit and on the rules governing contributions to and withdrawals from a TFSA can be found on the Canada Revenue Agency website at Tax-free Savings Account (TFSA) - Canada.ca.

Pension income splitting

For married taxpayers, pension income splitting is likely the most valuable strategy available to minimize both tax liability and exposure to the OAS clawback.

Using pension income splitting, the spouse who has income over the OAS clawback threshold re-allocates the “excess” income to their spouse on the annual return, and that income is then considered to be income of the recipient spouse, for purposes of both income tax and the OAS clawback. To be eligible for pension income splitting, the income to be reallocated must be private pension income, which is generally income from an RRSP or RRIF, or from an employer-sponsored pension plan. CPP and OAS benefit amounts do not qualify for pension income splitting.

There are two reasons why pension income splitting is a particularly attractive strategy for avoiding or minimizing the OAS clawback. First, there is no need to actually change the source or amount of income received by each spouse, as the reallocation of income is “notional”, existing only on the return for the year. Second, no decision has to be made on pension income splitting until it’s time to file the return for the previous year, meaning that spouses can easily calculate exactly how much income has to be reallocated to produce the desired result. More information on the kinds of income eligible for pension income splitting, and the mechanics of the process, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting.html.

Detailed information on the OAS clawback can be found on the same website at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/repayment.html.

When the filing of the required annual tax return goes entirely as planned and hoped, the taxpayer will have prepared a return that is complete and correct and filed that return by the required filing deadline. The Canada Revenue Agency (CRA) will issue a Notice of Assessment indicating that the return is “assessed as filed”, meaning that the CRA agrees with the information filed and the amount of tax payable determined by the taxpayer. While that’s the outcome everyone is hoping for, it’s a result which can be derailed in any number of ways.

When the filing of the required annual tax return goes entirely as planned and hoped, the taxpayer will have prepared a return that is complete and correct and filed that return by the required filing deadline. The Canada Revenue Agency (CRA) will issue a Notice of Assessment indicating that the return is “assessed as filed”, meaning that the CRA agrees with the information filed and the amount of tax payable determined by the taxpayer. While that’s the outcome everyone is hoping for, it’s a result which can be derailed in any number of ways.

By April 19, 2026, around 19.5 million individual income tax returns for the 2025 tax year had been filed with the CRA. And, inevitably, some of those returns contain errors or omissions that must be corrected.

Nearly 95% of the returns which have already been filed for the 2025 tax year were filed by EFILE or NETFILE, meaning that the return was prepared using tax return preparation software. The use of such software significantly reduces the chance of making a clerical or arithmetical error, like entering an amount on the wrong line or adding a column of figures incorrectly. However, no matter how good the software, it can work only with the information that is provided to it. Sometimes taxpayers who file their returns early then receive a tax information slip that should have been included on that return (or, more frequently, locate a tax information slip that had been received but was overlooked). It’s also easy to make an inputting error when transposing figures from an information slip (a T4 from one’s employer, for instance) into the software, such that $76,326 in income becomes $73,626 or $66,326. Whatever the cause, where the figures input are incorrect, or information is missing, those errors or omissions will be reflected in the final (incorrect) tax payable figure produced by the software.

When the error or omission is discovered in a return which has already been filed, the question which immediately arises is how to make things right. The first impulse of many taxpayers is to file another return, in which the complete and correct information is provided, but that’s not the right answer. There are, however, three separate methods by which most mistakes or omissions made in an already filed tax return can be corrected; each such method has its own requirements, limitations, and time frames for processing.

The 95% of return filers who used tax return preparation software to file their return can use that same software to change the return. (All tax return software programs certified for use by the CRA include that option, known as "ReFile".) The ReFile service is available seven days a week but is offline for maintenance from 3 a.m. to 6 a.m. Eastern Time each day.

The types of changes which can be made using ReFile include the most frequent sources of filing errors, including reporting income (such as a T4 slip or tips), claiming a deduction, credit, or expense (such as childcare or medical costs), or adding a missing tax slip (such as an RRSP contribution receipt). There are, however, limitations to the kinds of changes which can be made to an already filed return online. Specifically, it’s not possible to apply for benefits or credits, make or revise an election, allocate a refund to other CRA accounts, or update personal information, including a mailing or email address, direct deposit information, marital status, or name.

In addition, taxpayers cannot use ReFile to make a change to a return for the 2020 or earlier tax years, a bankruptcy return, an optional T1 return for a deceased taxpayer, a return filed with the incorrect province or territory of residence, or a return for a non-resident. More information on how to make a correction in an already filed return using ReFile can be found on the CRA website at Changing a tax return - Personal income tax - Canada.ca.

The second online option is available to taxpayers who have registered for the CRA’s “My Account” service. Those taxpayers can make a change or correction on their already-filed return using the “Change My Return” feature in My Account. The steps needed to do so are as follows:

1. Sign in to your CRA account.
2. Select Individual if you are changing your own return or Representative if you are changing someone else's.
3. Select Tax returns.
4. Find and select Change my return.
5. Select the tax year you want to change and follow the steps.
6. Save your confirmation number and summary of changes for your records.

As with ReFile, there are situations in which the Change my Return website feature cannot be used to correct a mistake in an already filed return, including the following:

• A return for the 2015 or earlier tax years;
• A bankruptcy return (or any year before the year of bankruptcy);
• An optional T1 return for a deceased taxpayer;
• A return filed with the incorrect province or territory of residence;
• Certain international and non-resident returns.

Where neither ReFile nor Change my Return can be used to make a correction on an already filed return (or where the taxpayer prefers not to use an online option), filing the request using hard copy to be sent by mail to the CRA is still possible. The paper form to be used is Form T1-ADJ E (23), which can be found on the CRA website at T1 Adjustment Request (canada.ca). Those who are unable to print the form off the website can order a copy to be sent to them by mail by calling the CRA’s individual income tax enquiries line at 1-800-959-8281. Detailed instructions on how to complete and submit a T1-ADJ E (23) can be found on page 2 of that form.

Taxpayers who are unsure of which method they may (or may not) be able to use to make a change on their return can find assistance through the “Confirm which option you can use” service on the CRA website. That feature, which is available on the CRA website at Changing a tax return - Personal income tax - Canada.ca as both a series of interactive questions and in a text document, will let the taxpayer know whether it’s possible to make the change online, or whether their request must be sent by mail.

No matter which method was originally used to file the return, or whether the correction is made online or in hard copy, there is one invariable rule. In all cases, it’s necessary to wait until the Notice of Assessment for the (incorrect) return already filed is received.  Corrections to a return which are submitted prior to the time that return is assessed simply can’t be processed by the Agency.

Once the Notice of Assessment is received, and an adjustment request is made, it will take at least a few weeks before the CRA responds by issuing a Notice of Reassessment, based on the new information provided by the taxpayer. The current estimates for a response from the CRA are two weeks (for non-complex adjustment requests filed online) and up to 12 weeks for those submitted in hard copy. Not surprisingly, requests which are submitted during the CRA’s peak return processing period between March and July will likely take longer.

Sometimes the CRA will contact the taxpayer, even before a return is assessed (or reassessed), to request further information, clarification, or documentation of deductions or credits claimed (for example, receipts documenting medical expenses claimed, or childcare costs). Whatever the nature of the request, the best course of action is to respond promptly, and to provide the requested documents or information. The CRA can assess only on the basis of the information with which it is provided, and it is the taxpayer’s responsibility to provide support for any deduction or credit claims made. Where a request for information or supporting documentation for a claimed deduction or credit is ignored by the taxpayer, the assessment will proceed on the basis that such support does not exist. Providing the requested information or supporting documentation can usually resolve the question to the CRA’s satisfaction, and its assessment of the taxpayer’s return can then be completed.

The Canadian tax system is what is termed a self-assessing system, in which taxpayers take the initiative to complete and file a tax return each year. In that tax return they provide information on income earned during the previous year, claim any tax deductions and credits to which they are entitled, and arrive at an estimate of tax owed for the year. In most cases the filing of that tax return will result in a tax refund paid to the taxpayer, while a minority of taxpayers will have a tax balance owed for the year, which must be paid on or before April 30.

The Canadian tax system is what is termed a self-assessing system, in which taxpayers take the initiative to complete and file a tax return each year. In that tax return they provide information on income earned during the previous year, claim any tax deductions and credits to which they are entitled, and arrive at an estimate of tax owed for the year. In most cases the filing of that tax return will result in a tax refund paid to the taxpayer, while a minority of taxpayers will have a tax balance owed for the year, which must be paid on or before April 30.

By and large, it’s a system which works remarkably well, as the vast majority of Canadians do file a return and pay any taxes owed on a timely basis. The cost of not doing so can, however, be steep, especially where a tax amount is owed on filing. Where there is a tax balance owed and payment in full is not made by the April 30 deadline, the Canada Revenue Agency will begin levying interest charges on any unpaid amount, starting May 1. Interest amounts payable to the CRA can mount up very quickly, for two reasons. First, the interest rate charged by the CRA is, by law, higher than ordinary commercial rates. For the second quarter of 2026 (April 1 - June 30) the rate charged on unpaid tax amounts is 7%. More significantly, all interest charges levied by the CRA on unpaid taxes are compounded daily, meaning that each day, interest is charged on the previous days interest. It’s not hard to see how interest costs can accumulate quickly.

Where a tax amount is owed and the taxpayer does not pay that amount and also does not file their tax return for the year, the news gets worse. In such circumstances, an immediate late-filing penalty is imposed, equal to 5% of the outstanding tax amount owed. A further penalty of 1% of that tax amount owed is then levied for every full month that the return is late, to a maximum of 12 months. If the taxpayer has a history of late filing or late payment, penalty amounts increase to an immediate 10% late-filing penalty, plus 2% per month, to a maximum of 20 months. In a worst-case scenario, the total penalty amounts imposed can reach 50% of the tax amount owed – and that doesn’t include interest charges which will be levied on both the outstanding tax amount and on all accumulating penalty charges.

Where a failure to meet one’s tax obligations is simply the result of carelessness or negligence on the part of the taxpayer, it’s really not possible to avoid such charges. Sometimes, however, taxpayers fail to meet their tax obligations for reasons that are entirely outside their control. When that happens, the CRA may be willing to extend relief by forgiving interest and penalty charges, in whole or in part, through the Agency’s Taxpayer Relief Provisions.

It's important to note, at the outset, that while the CRA has issued guidelines on the circumstances in which interest and penalty relief may be provided, the decision to provide such relief is entirely discretionary on the Agency’s part – there is no right to interest and penalty relief. Second, while interest and penalty relief may be made available to the taxpayer, no relief is provided with respect to actual tax amounts owed. No matter how dire the circumstances, tax amounts owed must always be paid.

The guidelines issued by the CRA on when interest and penalty relief may be available fall into two general categories. The first addresses taxpayers who are unable to meet their tax obligations as the result of extraordinary circumstances, whether those circumstances are personal (including, for instance, a death in the family or personal illness or a serious accident) or are events or circumstances which affect a number of taxpayers. Such events and circumstances include extreme weather events or natural or man-made disasters, like floods and wildfires. Nearly every year for the past several years Canadians across the country have had to leave their homes, sometimes for an extended period of time, as a consequence of wildfires or spring floods. At such times meeting one’s tax obligations is understandably a very low priority and, in the worst case scenario, the weather event or disaster which forced an evacuation may also result in the destruction of the taxpayer’s home, including their financial and tax records, making it difficult or impossible to file returns or determine or pay tax amounts owed.

Finally, in a situation which is becoming a reality for an increasing number of Canadians, the CRA is prepared to consider providing interest relief where the taxpayer is experiencing significant financial hardship. As every Canadian knows, the cost of living (especially the cost of food and energy, both completely unavoidable expenses) has increased significantly over the past five or six years. According to Statistics Canada, the cost of groceries rose by 30.1% in the five years between 2021 and 2026. This year, the 21.2% month-over-month increase in the cost of gasoline for April 2026 was, according to Statistics Canada, the largest such gasoline price increase on record.

The CRA’s guidelines, as outlined on the Agency’s website, indicate that it will consider waiving or cancelling interest charges, in whole or in part, where the taxpayer cannot pay those charges due to financial hardship, where paying interest amounts owed would make it difficult for the taxpayer to provide basic necessities, such as food, medical help, transportation, or shelter for a prolonged period of time, or where interest charges make up the majority of the amount owed and the taxpayer is unable to make a reasonable payment arrangement with the CRA.

Regardless of the reasons or circumstances (i.e., natural or man-made disaster, adverse personal or family circumstances, or financial hardship) which have prompted the taxpayer to submit an application for relief, the process of filing that application is the same. Taxpayers who have registered for the CRA online service My Account can file their application using that service. Those who are not registered for My Account, or would prefer filing a paper application, can find the current version of the required form on the CRA website at Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest. The address to which the completed form should be sent (which will depend on the taxpayer’s province of residence) can be found on the last page of Form RC4288.

Regardless of the circumstances which led the taxpayer to make an application for interest or penalty relief, the CRA requires that the taxpayer provide documentation of the reasons for the application. The nature of that documentation will, of course, differ, depending on the reason that the application was made.

In order to receive relief in situations of financial hardship, a taxpayer must be able to provide the CRA with detailed information on their current financial situation. That financial situation is outlined on a prescribed CRA form which is available at Form RC376, Taxpayer Relief Request – Statement of Income and Expenses and Assets and Liabilities for Individuals. In addition to the information submitted on that form, the taxpayer must also provide supporting documentation, such as a current mortgage statement, property tax assessment, or rental agreement, along with statements for loans and recurring bills and credit card and bank statements for the past three months.

Where the application is made owing to serious illness or accident, the taxpayer should provide a doctor’s certificate indicating the type of illness, expected length of treatment, any hospitalization dates, and the effect that the medical condition might have had on the taxpayer’s ability to meet their tax obligations. Where there has been a death in the family, the CRA requests that a death certificate or obituary be provided.

Finally, where the taxpayer has been unable to meet their tax obligations because of a man-made or natural disaster, the CRA will be looking for insurance reports or fire or police reports documenting the time, place, and impact of that disaster.

Whatever the reason for the application, or how it is filed, the Agency will review the information submitted and make a determination of whether to cancel interest and/or penalty amounts owed, in whole or in part. The factors considered by the Agency in determining whether to grant relief will, of course, depend for the most part on the circumstances giving rise to the application. In general, however, the Agency will consider the taxpayer’s tax return filing and payment history, whether the taxpayer knowingly let a balance owing exist (resulting in additional interest charges), whether reasonable care was taken in the management of the taxpayer’s tax affairs, and finally, whether the taxpayer acted quickly to correct any delay or omission.

The CRA’s self-imposed “service standard” on straightforward taxpayer relief applications is to make a decision within six months (180 days) after the application is received. However, not surprisingly, the Agency is currently receiving a higher than usual number of applications, such that the average processing time for applications is now closer to 14 months.

Where the taxpayer’s request is denied by the CRA, they can request that the decision be reviewed. If that decision is also negative, the only recourse is to ask a judge to review the CRA’s decision. In the great majority of cases, however, the cost of taking that step is likely to be greater than the amount of interest and penalties at issue.

In all cases, the best course of action for the taxpayer is to be proactive – to contact the CRA as soon as the taxpayer is aware that filing of a required return, or paying taxes owed in full and on a timely basis, will not be possible. Taking the initiative and moving quickly to resolve the problem will both minimize the amount of interest which will accrue on unpaid taxes and will count in the taxpayer’s favour when the CRA considers whether to allow an application for waiver of those interest and penalty charges.

Taxpayers who are unsure of whether their particular circumstances will qualify for relief under this program can use a self-evaluation tool provided on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes/cancel-waive-penalties-interest/self-evaluation-learning-tool.html. To use that feature, the taxpayer provides detailed information (which is not   saved or submitted to the CRA) about their situation and is provided with information about whether that situation could qualify for taxpayer relief and/or if there are other federal programs which might provide a better option.

Detailed information on the Taxpayer Relief Provisions is available on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes/cancel-waive-penalties-interest.html.

While the rules of the Canadian tax system include a great number of tax deduction and credit claims which can be made by individuals, the general rule is that personal living expenses do not, in most cases, qualify for any kind of tax assistance or tax relief. However (and fortunately for parents who must expend significant amounts over the course of a tax year for the cost of day care, after-school care, a babysitter, or even a nanny) an exception is provided from that rule in the form of the child care expenses tax deduction.

While the rules of the Canadian tax system include a great number of tax deduction and credit claims which can be made by individuals, the general rule is that personal living expenses do not, in most cases, qualify for any kind of tax assistance or tax relief. However (and fortunately for parents who must expend significant amounts over the course of a tax year for the cost of day care, after-school care, a babysitter, or even a nanny) an exception is provided from that rule in the form of the child care expenses tax deduction.

That child care expenses tax deduction is particularly beneficial in two ways: first, while there are limits on the amount of child care expenses which can be deducted (and those limits are not indexed to inflation and have not changed since 2014), the limits imposed are still relatively generous ones. Second, and more important, the child care expense deduction enables parents to deduct eligible expenses from income on a dollar-for-dollar basis, meaning that income used to pay eligible child care expenses is income which is not taxed. As well, the rule determining whether child care costs incurred are deductible is fairly straightforward and easy to meet – parents who incur eligible child care costs in order to work (whether in employment or self-employment) or, in some cases to attend school, can deduct those costs from income.

The amount of any available child care deduction to be claimed for the 2025 tax year is calculated on Form T778 E(25), and that calculation can seem forbiddingly complex. However, at the end of the day, the amount of child care expenses which can be deducted is simply the least of three figures, and only one of those figures requires a calculation. The steps involved in determining the amount of available child care expenses deduction are as follows.

First, the amount of any deduction for child care expenses is limited to two-thirds of the taxpayer’s earned income for the year. The income figure used to calculate the two-thirds figure is, generally, the amount shown on Line 23600 of the annual tax return. Where the family incurring child care expenses is a two-income family, it is usually the spouse with the lower net income who must make the claim and consequently it is their net income which is used to provide that two-thirds of net income figure.

The second figure to be determined is the amount actually paid for eligible child care costs during the year. While virtually any licensed child care arrangement will qualify for purposes of the deduction, some more informal arrangements may not. Specifically, no deduction is available for amounts paid to most family members to provide child care. Consequently, it’s not possible for a working spouse to pay the stay-at-home parent to provide child care, nor is it possible to pay an older sibling (or any other related person) who is under the age of 18 to provide such services and to claim a deduction for those expenses incurred. As well, where a claim is made for a deduction for child care expenses on the annual return, the claimant must obtain (and be prepared to provide to the tax authorities) the social insurance number of the individual providing the care as well as a receipt showing the amounts paid, whether to an individual or an organization.

The third figure to be determined is the one which requires some calculation. Basically, the rules governing the deduction of child care expenses impose a maximum deduction per child per year (referred to as the “basic limit”), with that basic limit dependent on the age and health of the particular child.

For 2025, the following overall limits apply:

• $5,000 in costs per year for a child who was born in 2009 to 2018;
• $8,000 in costs per year for a child who was born after 2018;
• $11,000 in costs per year for a child who was born in 2025 or earlier and for whom the disability tax credit can be claimed. 

Take, for example, a two-income family in which one spouse earns $70,000 and the second spouse earns $56,000. They have two children, aged 4 (born in 2021) and aged 8 (born in 2017). Neither is disabled. The 4-year-old attends day care five days a week and the 8-year-old goes to an after-school program each weekday.

During 2025, the family incurred $6,000 in day care costs for the younger child and $4,000 in costs for after-school care for the older child.

All eligible child care costs incurred must be claimed by the lower income spouse, who earned $56,000 during 2025. In order to determine the amount which can be claimed for each child, it’s necessary to determine the basic limit for that child, based on their age, as follows.

• the basic limit for the 4-year-old (who was born after 2018) is $8,000, and so the entire $6,000 in day care costs incurred can be deducted.
• the basic limit for the 8-year-old (who was born between 2009 and 2018) is $5,000, and so once again the entire $4,000 incurred in costs for after-school can be deducted.

Finally, the overall limit for purposes of the child care expense deduction is two-thirds of earned income of the lower-income spouse, meaning that the maximum claim which can be made for 2025 is $37,296 (66.6% of $56,000), well in excess of the actual costs incurred.

The total deduction available for child care expenses incurred for the 2025 tax year will therefore be $10,000. That deduction is claimed on Line 21400 of the tax return filed by the lower-income spouse for the year, reducing their taxable income from $56,000 to $46,000, and resulting in a federal tax savings of $1,450. A similar tax deduction is claimed as well for provincial tax purposes; the amount of provincial tax saved will depend on the tax rates imposed by the province in which the family lives.

Parents wishing to find out more about the child care expense deduction, and perhaps to calculate the maximum deduction which will be available to them for the 2025 tax year, should consult Form T778 E (25). The form is currently on the CRA website and can be found at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t778.html.

Very few Canadians look forward to the annual chore of completing and filing their income tax return, and that experience isn’t improved by finding out, once the return is completed, that additional tax amounts are owed to the CRA. Unfortunately, that’s an experience that millions of Canadians will have over the next month or so. While most tax return filings result in payment of a refund to the taxpayer, that’s not always the case. This year, of the returns filed by March 22, 2026, just over a million of those returns resulted in additional tax owed on filing by the individual tax filer. And while that number represents a very small percentage of total returns filed, that’s little consolation for the taxpayers who find themselves in that unhappy position.

Very few Canadians look forward to the annual chore of completing and filing their income tax return, and that experience isn’t improved by finding out, once the return is completed, that additional tax amounts are owed to the CRA. Unfortunately, that’s an experience that millions of Canadians will have over the next month or so. While most tax return filings result in payment of a refund to the taxpayer, that’s not always the case. This year, of the returns filed by March 22, 2026, just over a million of those returns resulted in additional tax owed on filing by the individual tax filer. And while that number represents a very small percentage of total returns filed, that’s little consolation for the taxpayers who find themselves in that unhappy position.

Finding out that additional tax amounts are owed usually comes as a surprise to the taxpayer and consequently is almost never something that they have budgeted or planned for. The worst-case scenario, for all taxpayers, is to find out that they are faced with a large tax bill and an imminent payment deadline, and that they just don’t have the funds needed to make the required payment by that deadline. This year, that payment deadline is Thursday April 30, 2026 for ALL individual taxpayers (including self-employed taxpayers and their spouses, notwithstanding the fact that such taxpayers have until Tuesday June 16, 2026 to file their 2025 tax return).

The April 30 payment deadline is inflexible and, where payment in full is not made on or before that date, interest charges on any unpaid balance will be levied by the CRA beginning on May 1, 2026. Interest charges levied by the CRA tend to add up quickly, for two reasons. First, the interest rate charged by the CRA on outstanding tax amounts is, by law, higher than current commercial rates – the rate charged from April 1 to June 30, 2026 is 7.0%. Second, interest charges levied by the CRA are compounded daily, meaning that each day interest is levied on the previous day’s interest charges. It is for these reasons that a taxpayer is, where at all possible, likely better off arranging private borrowing – for example, through a line of credit or low-interest credit card – in order to pay any taxes owing by the April 30, 2026 deadline.

Where the taxpayer can’t pay their tax bill out of current resources and is unable to borrow the funds to do so, there is another option. Like most creditors, the CRA would rather get paid on time and in full, but the Agency’s ultimate goal is to collect the full amount of taxes owed. If a tax bill can’t be paid on time, in full or in part, the CRA is open to making a payment arrangement with the taxpayer, providing them with the option of paying an amount owed over time, plus interest.

There are three options available to taxpayers who want to propose such a payment arrangement. The first is a call to the CRA’s automated TeleArrangement service at 1-866-256-1147. When making such a call, it is necessary for the taxpayer to provide their full name and address, social insurance number, and date of birth, and to have the Notice of Assessment for the last tax return for which the taxpayer filed. For taxpayers who are up to date on their tax filings, that will be the Notice of Assessment for the return for the 2024 tax year. The TeleArrangement Service is available Monday to Friday, from 7 a.m. to 10 p.m., Eastern time.

Taxpayers who would rather speak directly to a CRA employee can call the Agency’s debt management call centre at 1-888-863-8657 from 8 a.m. to 8 p.m. Eastern Time Monday to Friday. Where there is a long wait time, the taxpayer can request that a CRA representative return the call, or can complete an online form (available at https://apps.cra-arc.gc.ca/ebci/iesl/showClickToTalkForm.action) requesting a callback from a CRA agent.

Finally, taxpayers who have registered for the CRA’s online service My Account can also log into their account to schedule a series of pre-authorized debits from their bank account to discharge their tax debt. My Account is available on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html.

Finally, regardless of the taxpayer’s circumstances, there is one strategy which is in all circumstances the wrong choice. Taxpayers who can’t pay their tax bill by the deadline sometimes conclude that there is no point in filing if payment can’t be made. That’s the wrong decision, and potentially a very costly one. Where an amount of tax is owed and the return isn’t filed on time, there is an immediate late filing penalty imposed equal to 5% of the outstanding tax amount – and interest charges start accruing on that penalty amount (as well as on the outstanding tax balance) immediately. For each full month that the return isn’t filed, a further penalty of 1% of the outstanding tax amount is charged, to a maximum of 12 months. Higher penalty amounts are charged, for a longer period, where the taxpayer has incurred a late-filing penalty within the past three years. In the worst-case scenario, the total penalty charges can reach 50% of the tax amount owed – and that doesn’t count the compound interest which is levied on all penalty amounts, as well as on all unpaid taxes. In all cases, no matter what the circumstances, the right answer is to file one’s tax return on time and, where necessary, contact the CRA to make an arrangement to pay tax amounts owed over time.

Detailed information on the options available to taxpayers who can’t pay their taxes on time and in full can be found on the CRA website at  Call us if you can't pay in full or on time - Debt collection at the CRA - Canada.ca and https://www.canada.ca/en/revenue-agency/services/payments-cra/payment-arrangements.html.

2025 was a busy year in Canadian politics. In addition to the general federal election, elections were held in two provinces (Ontario and Newfoundland) and two of the territories (Nunavut and Yukon Territory). In addition, there were no fewer than thirteen by-elections and eleven leadership contests, for different political parties, at both the federal and provincial/territorial levels.

2025 was a busy year in Canadian politics. In addition to the general federal election, elections were held in two provinces (Ontario and Newfoundland) and two of the territories (Nunavut and Yukon Territory). In addition, there were no fewer than thirteen by-elections and eleven leadership contests, for different political parties, at both the federal and provincial/territorial levels.

Whether it’s a leadership contest, a by-election, or a general election at the federal, provincial, or territorial level, votes are needed in order to win. And to run the leadership or election campaigns needed to garner those votes, candidates need an organization, volunteers, and money – a lot of money. Particularly in a general federal election, the major political parties needed to raise and spend millions of dollars, and the task of raising that money is undoubtedly made somewhat easier by the fact that a tax credit exists to help offset the out-of-pocket cost to potential donors.

Individuals who donated money to the political party or candidate of their choice during 2025 may or may not be happy with the outcome of an election or leadership contest, but no matter which registered party or candidate they donated to, donors may be able to claim a federal and a provincial or territorial tax credit for that donation when they file their returns for the 2025 tax year.

Federally, the political contribution tax credit is available with respect to funds contributed to either a registered political party or to candidates running in a federal election. Contributions can be made at any time, not just during an election campaign, as long as the donation is received by an official candidate or by a registered federal political party or association.

While the parties which currently hold seats in the House of Commons are, of course, the most well known, there were in fact 16 political parties registered and in good standing with Elections Canada at the time of the 2025 federal general election; a listing of those parties can be found on the Elections Canada website at  https://www.elections.ca/content.aspx?section=ele&dir=pas/45ge/pollim&document=index&lang=e.

Contributions to any one of these registered parties, within prescribed limits, will qualify for the federal political contribution tax credit. And, where a qualifying contribution is made, an official receipt must be issued in order for the contributor to claim that tax credit.

The federal political contribution tax credit is calculated as a percentage of donations given, with the credit percentage decreasing as contributions amounts increase. The credit percentages allowed for different contribution levels are as follows:

The maximum credit claimable in any taxation year by a single taxpayer is $650, meaning that the maximum credit obtainable is reached once contribution levels reach $1,275.

Unlike some other tax credit measures, the rules governing the political contribution tax credit do not permit political contributions eligible for the credit to be carried over and claimed in any previous or subsequent tax year. Consequently, all such contributions made can only be claimed on the return for the year in which those contributions were made. As well, where such contributions exceed $1,275 in any one taxation year, no tax credit can be claimed on any “excess” contributions, in either the current or any previous or subsequent tax year.

Each of the provinces and territories also provides a tax credit for political contributions made. The rules on which types of contribution are eligible for that credit, and how the credit is calculated, will differ for each jurisdiction. Information on the political contribution tax credit for the provinces and territories which held general elections in 2025 can be found on the following websites: 

• Ontario https://www.ontario.ca/page/political-contribution-tax-credit-individuals;
• Newfoundland and Labrador https://www.gov.nl.ca/fin/tax-programs-incentives/personal/politicalcontributions/;
• Yukon https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/yukon/5011-pc.html#h-4;
• Nunavut https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/nunavut/5014-pc.html

Many Canadians who are committed to a particular political party or candidate volunteer their time during a nomination or election campaign – canvassing for the candidate, putting up election signs, or telephoning voters to encourage them to vote for the candidate. However, in such cases, the work must be its own reward, as no income tax receipts can be issued for most such non-monetary contributions, and consequently no credit can be claimed for the value of any non-monetary contribution (including volunteer hours) donated.

Information on the federal political contribution tax credit, as well as the credit claimable in each of the provinces and territories, can be found on the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/federal-political-contributions-line-40900-total-contributions-line-41000-tax-credit.html, https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/provincial-territorial-tax-credits-individuals.html, and https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/how-to-complete-your-income-tax-return/line-by-line-help/400-to-447-income-tax-and-contributions/line-414/.

Fortunately for Canadian taxpayers, most individual income tax returns filed with the Canada Revenue Agency result in payment of a tax refund to the taxpayer. Last year, out of nearly 34 million returns filed, just over 19 million resulted in payment of a refund to the taxpayer, with the average refund being $2,000. Just over 8 million taxpayers owed money on filing to the CRA, and the remainder of returns were nil returns, resulting in neither tax owing nor payment of a refund.

Fortunately for Canadian taxpayers, most individual income tax returns filed with the Canada Revenue Agency result in payment of a tax refund to the taxpayer. Last year, out of nearly 34 million returns filed, just over 19 million resulted in payment of a refund to the taxpayer, with the average refund being $2,000. Just over 8 million taxpayers owed money on filing to the CRA, and the remainder of returns were nil returns, resulting in neither tax owing nor payment of a refund.

The minority of taxpayers who are assessed as having tax owing have a lot of options when it comes to the available methods by which such tax can be paid, but no choice at all when it comes to the deadline by which such payment must be made. In all cases, individual income tax owed by a taxpayer for a tax year must be paid on or before April 30 of the following year. This year, that means any balance of income tax owed for the 2025 tax year must be paid on or before Thursday April 30, 2026. No exceptions and, absent unusual circumstances, no extensions.

Failing to pay one’s tax bill in full and on time can result in a significant financial cost, as the result of the CRA’s practices and policies with respect to interest charges. Interest will be levied on any outstanding amount owed for the 2025 tax year beginning on May 1, 2026. By law, the CRA charges interest at rates which are higher than current commercial rates. For the second quarter of 2026 (April 1 – June 30) the interest rate charged on overdue or insufficient tax amounts owed is 7%, and all such interest charges are compounded daily, meaning that each day interest is charged on interest levied on the previous day.

Just as it’s in the taxpayer’s interest to pay tax amounts owed on or before the April 30 payment deadline, it’s also very much in the CRA’s interest to make paying taxes as simple and straightforward as it can be. To that end, the Agency offers individual taxpayers a wide range of choices when it comes making that payment. This year there are no fewer than eleven separate options available to individual residents of Canada in paying their taxes for the 2025 tax year. The rules and procedures for the methods most frequently used by individual taxpayers are outlined below: the first four options involve payment by electronic means, while the last three describe those available to taxpayers who would prefer to make their payments in person, or by sending a cheque to the CRA.

Pay using online banking

Millions of Canadians transact most or all of their banking using the online services of their particular financial institution. The list of financial institutions through which a payment can be made to the Canada Revenue Agency is a lengthy one (available at Pay online with your bank or credit union - Payments to the CRA - Canada.ca), and includes all of Canada’s major banks and credit unions.

The specific steps involved in making that payment will differ slightly for each financial institution, depending on how their online payment systems are configured. What’s important to remember is that the nature of the payment – i.e., tax balance owed on filing, as distinct from current year tax instalment payments – must be specified, and the taxpayer’s social insurance number must be provided, in order to ensure that the payment is credited to the correct account, for the correct taxation year.

It’s not necessary to access any particular CRA form in order to make an online payment of taxes through one’s financial institution.

Using the CRA’s My Payment

The CRA also provides an online payment service called My Payment. There is no fee charged for the service, and it’s not necessary to be registered for any of the CRA’s other online services in order to use My Payment.

What is necessary is that the taxpayer have an activated debit card with a VISA Debit or Debit MasterCard logo from a participating Canadian financial institution, as My Payment is set up to accept payment using only those cards. It’s not possible to use a credit card to make a payment on My Payment; in addition, cards bearing only the Interac Debit logo, which were formerly eligible, have not been accepted for purposes of My Payment since September 2024.

Anyone intending to use My Payment should also confirm that the amount of any payment to be made is within any transaction limits imposed by their particular financial institution.

A list of participating financial institutions for each type of card, and more details on this payment method, can be found at https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html.

Payment by credit card, PayPal, or Interac e-transfer

While it’s possible to pay one’s taxes using a credit card, PayPal, or Interac e-transfer, such payments can be made only through third-party service providers (that is, payments by those methods cannot be made directly to the Canada Revenue Agency), and such third-party service providers will impose a fee for the service.

There are currently only three service providers through which individual income tax amounts owed can be paid – Pay Simply, Plastique, and TelPay – and each such service provider offers different payment methods. Links to each such service are available at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-credit-card.html.

Payment by pre-authorized debit

It’s possible to set up a pre-authorized debit (PAD) arrangement with the CRA, authorizing the Agency to debit a specific bank account for an amount of taxes owed, on dates specified by the taxpayer.

Individuals who make instalment payments of tax throughout the year may already have such an arrangement in place and can certainly use that existing arrangement to schedule a PAD of any balance of taxes owed for the 2025 tax year. However, any such payments must be scheduled at least five business days before the date the payment is to be made – i.e., April 30, 2026. A taxpayer who makes a payment of taxes only once a year is likely better off using another of the available payment methods.

There is also another option for taxpayers who have their return prepared and E-FILED by an authorized electronic filer. Such taxpayers can have that E-FILER set up a PAD agreement on their behalf in order to make a “one-time” payment for a current year tax amount owed. Such an arrangement is only for the payment of a current year tax balance and can’t be used for other payments like instalment payments of tax. Details on how to set up a pre-authorized debit arrangement, whether for a single payment or for recurring payments, are outlined on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-authorized-debit.html.

Paying in person at your financial institution

For those who don’t use online banking, or simply prefer to make a payment in person, it’s possible to pay a tax amount owed at a bank or credit union. Doing so, however, requires that the taxpayer have a specific remittance form – the T7DR, Amount owing Remittance Voucher.

It’s possible to download and print that remittance form from the CRA website. Instructions on how to do so can be found on the website at https://www.canada.ca/en/revenue-agency/services/forms-publications/request-payment-forms-remittance-vouchers.html.

Paying at a Canada Post outlet

All Canada Post outlets can receive payments of individual income tax balances owed, in cash or by debit card, but will charge a fee for doing so. A specific form is needed to make tax payments at Canada Post outlets.

For such payments, the taxpayer must have a QR code which contains the information needed for the CRA to credit the amount paid to the taxpayer’s account.

While a QR code is sometimes included on remittance forms sent to the taxpayer by the CRA, it’s also possible to generate a QR code online through the CRA website. A link to instructions on how to do so can be found on that website at https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/pay-canada-post.html.

Paying by cheque

While it’s not as common anymore, it’s still possible to pay any tax balance owed on filing by cheque, as outlined on the CRA website at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-cheque.html.

Such cheques are made payable to the Receiver-General for Canada and are mailed, together with the required remittance voucher, to the Canada Revenue Agency, using the address found on the CRA website. As is the case with payments made at a financial institution, the taxpayer can print such a remittance form from the CRA’s website. Instructions on how to do so can be found at https://www.canada.ca/en/revenue-agency/services/forms-publications/request-payment-forms-remittance-vouchers.html.

Even where the taxpayer does not have a remittance form, it’s possible to pay taxes owed by cheque. The CRA suggests that, where payment of taxes owed is made by cheque, the taxpayer should include their social insurance number on the memo line found on the front of the cheque and, in addition, provide information about the tax account (that is, 2025 income tax balance owed on filing) to which the payment should be applied. Alternatively, that information can be provided on a separate piece of paper sent in the same envelope as the cheque. Taking these steps will help ensure that the payment is credited to both the correct taxpayer and the correct tax account of that taxpayer.

A decision on what method to use to pay one’s taxes includes another very important consideration of which most taxpayers are unaware. Under longstanding Canada Revenue Agency policy, the CRA considers that a payment is actually made on the date on which it is received by the Agency. However, depending on the payment method chosen, that date of receipt usually isn’t the same day the payment is made by the taxpayer, and it can be as much as several days later. And, of course, where payment is made close to the payment deadline, that delay can mean the difference between a timely payment and one that is late and incurs interest charges.

Helpfully, the Canada Revenue Agency provides information, for each payment method, on both which types of tax payments can be made using that method and how the date of receipt is determined for that particular method. That information can be found on the CRA’s website at Canada Revenue Agency https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/make-payment.html.

Finally, once payment has been made, by any payment method, the CRA provides taxpayers with an online method for confirming that a payment has been received and applied to the taxpayer’s account, through the Agency’s My Account service. That service is available at https://www.canada.ca/en/revenue-agency/services/payments-cra/confirm-payment.html. Taxpayers who have not signed up for My Account can confirm that their payment has been received and applied to their 2025 tax account by calling the CRA’s Individual Income Tax Enquiries line, where an automated service at 1-800-959-8281, option 4, can provide that information.

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.

They can be accessed below.

Corporate:

Issue #75 Corporate

Personal:

Issue #75 Personal