Is it legal to pay taxes with a credit card in Canada?

Yes, it is perfectly legal. The Canada Revenue Agency (CRA) and Revenu Quebec do not directly allow credit card payments, but they officially recognize third-party providers like PaySimply and Plastiq, who offer this service for a fee.

How much does it cost to pay my taxes by credit card?

PaySimply and Plastiq charge a 2.49% fee for tax payments made with Visa, Mastercard, or American Express credit cards.

Which credit card is best for paying my taxes?

The best card depends on your goals. For cash back, the Scotia Momentum Visa Infinite+ card offers up to 4% on bill payment services, potentially making tax payments worthwhile despite the fees. If you are aiming for travel points or a welcome bonus, Aeroplan cards or American Express cards with substantial welcome bonuses may be more advantageous. Ideally, you should calculate the value of the rewards earned compared to the fees paid.

How do I declare tax payments by credit card on my tax return?

There is nothing special to indicate on your tax return. Plastiq and PaySimply send your payment directly to the Canada Revenue Agency or Revenu Québec with all your identifying information. From a tax filing perspective, it is the same as paying the government directly. Simply keep the transaction confirmation for your records.