If you cannot pay an income-tax balance in full, separate the filing task from the payment problem. Complete the return on time and address the balance using CRA's payment options.
Start with a realistic budget
Confirm the debt, account and due date. List monthly income, essential expenses, existing debts and the amount you can pay regularly. CRA provides a worksheet and options to arrange payments online or by phone. CRA's payment-arrangement process.
A useful proposal includes an initial payment, recurring amount and dates that fit actual cash flow. For example, a variable-income worker should not promise a fixed amount based only on their best month. Keep room for current obligations so the arrangement does not create another overdue return or payment.
Understand what the arrangement changes
Paying over time does not automatically cancel applicable interest or penalties. Interest on an unpaid tax balance can continue while you make payments. CRA's interest and penalty guidance.
Save the agreed terms and payment confirmations. Keep future returns and obligations current. If your circumstances change, contact CRA before paying less than agreed; do not assume an old arrangement adjusts itself.
If a collections officer has already written to you, follow up through the verified contact process promptly. Relief for extraordinary circumstances is a separate request with its own conditions, not a guaranteed part of a payment plan.
Finally, distinguish payments toward an old debt from instalments for the current year's tax. Label both in your calendar and check that each payment reaches the intended account or period.
Checked October 20, 2026. If money was sent but appears in the wrong place, see correcting a payment allocation.
