Can’t Pay Your CRA Tax Bill? Here’s What to Do (2025 Guide)
Got hit with a bigger tax bill than expected? You’re not the only one. Each year, thousands of Canadians find themselves owing the CRA more than they can afford to pay. And while it can feel stressful, there are clear steps you can take to get back on track. This simple guide breaks down your options if you can’t pay your CRA tax bill in 2025.
Don’t Ignore the Problem
Delaying action only makes things worse. CRA interest compounds daily, and late payment penalties rack up quickly. Even if you can’t pay the full amount, file your return on time to avoid a 5% late-filing penalty plus 1% for each additional month.
Find Out Exactly What You Owe
Before panicking, check your CRA My Account for your official Notice of Assessment. Make sure everything looks right—mistakes or missed deductions happen. A tax professional can review it and potentially reduce what you owe.
Set Up a CRA Payment Arrangement
Can’t pay in full? CRA offers flexible payment arrangements. You’ll need to propose a monthly payment plan, stay current on future taxes, and continue paying interest. Apply online or call CRA. Be honest—showing effort helps your case.
Apply for Taxpayer Relief
Facing serious hardship or unexpected life events? You may qualify for CRA’s Taxpayer Relief Program. If approved, they could cancel some interest or penalties. You’ll need documentation, and working with a tax pro can boost your success.
Avoid High-Interest Loans
Resist the urge to take out payday loans or credit cards to cover tax debt. These often make things worse. A structured CRA plan is usually a safer option that doesn’t spiral into deeper financial trouble.
Work with a Tax Professional
Tax debt can feel isolating—but you don’t have to handle it alone. An accountant can:
– Review your return for missed deductions
– Handle CRA negotiations
– Help apply for relief programs
– Set up better tax planning moving forward
At NRK Accounting, we help clients manage CRA debt with clarity and strategy.
Next Steps
- Log in to your CRA My Account and check your balance.
2. File your return if you haven’t yet.
3. Contact NRK Accounting for a free consultation to discuss your options.Don’t wait for CRA collections to escalate. The sooner you act, the better the outcome.