How to Pay Your Personal Income Tax Online in Canada (RBC Example)
Every tax season, many people hire a professional accountant to help file their taxes. But after filing, how do you actually pay your personal income tax? Today, we’ll walk you through the process step by step using RBC Online Banking as an example.
Step 1: Log in to Online Banking
At the bottom of the screen, click the yellow button and select “Pay a bill / Pay bills.”
Step 2: Add a Payee
Again, click the yellow button at the bottom and choose “Add a payee.”
Step 3: Search for a Payee
Choose “Search for a payee.”
Step 4: Search “CRA” and Select the Correct Payee
In the search bar, type “CRA” and select “CRA (Revenue) 2020 TAX RETURN.”
Step 5: Enter Your Information
In the “Nickname” field, you can enter the taxpayer’s name. In the “Account Number” field, enter your SIN (Social Insurance Number). Then click “Save.”
Step 6: Make Your Payment
Click “Pay Now” to complete your tax payment.
Other Banks Have Similar Online Payment Features
The example above shows the RBC mobile app, but most Canadian banks offer similar online tax payment features. The interface may vary slightly, but you only need to remember the following key steps:
- Log in to your online banking account, select “Pay a bill / Pay bills”, then search for “CRA” under payees. Choose “CRA PERSONAL INCOME TAX – [Year] TAX RETURN.”
- Set the Account Number as your SIN (Social Insurance Number). The Nickname or Memo can include your name as a reminder.
- Follow the on-screen payment instructions to complete your personal income tax payment.
Note: CRA automatically updates the tax year. Once you set up your CRA payee for the first time, you don’t need to update the year manually for future payments.
Paying Tax Instalments in Advance
If you need to make tax instalment payments during the year, in Step 4 simply choose “CRA REVENUE TAX INSTALMENT” instead of “TAX RETURN.” The other steps remain the same. Any prepayments made will be automatically adjusted at year-end when you file your tax return.
Tip: Always double-check your payee name and SIN to ensure your payment is applied to the correct account. Once set up, online tax payments are quick, secure, and convenient!