As a taxable resident in Canada, you are obligated to file and pay for your taxes every year. Is there a deadline on when you need to pay for your taxes? Does it differ from an employee vs a self-employed individual. What about for businesses? Missing your tax payments can result in hefty penalties you wish you avoid, so let’s dive in.
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When are taxes due in Canada?
In Canada, taxes are due every year on April 30.
Additionally, any tax debts must be settled at this time. If April 30 comes on a weekend or holiday, Canadian taxpayers have until the start of business on the next business day to submit their returns for the previous tax year. In 2024, the deadline for filing your tax return for the year 2023 is April 30, 2024.
There is a June 15 filing deadline for those who are self-employed or who have a spouse or common-law partner who is self-employed. On April 30, 2024, you must submit your tax payment.
If you don’t get your taxes in on time, you’ll have to pay interest and a penalty on top of what you owe. Currently, CRA charges a whopping 9% interest on outstanding tax owing (10% starting in 2024 for outstanding tax balance). Tax returns must be filed on or before April 30 regardless of whether or not the full amount of taxes owed can be paid at that time. Those who cannot do so should contact the CRA to discuss payment arrangements.
Due dates and payment schedules for personal income taxes
Learn when you need to file your taxes, when you may expect your refund, and when you can start collecting credits and benefits.
Deadlines for submitting your 2023 tax returns:
- Contributions to an RRSP, or Spousal RRSP must be made before February 29, 2024.
- Tax returns are due by April 30, 2024
- If you or your spouse or common-law partner are self-employed, the tax filing deadline is June 15, 2024.
Scheduled Tax Payment Due Date for 2023:
- The tax payment due date is April 30, 2024.
What are the consequences of missing the Canadian tax filing deadline?
Tax returns may be submitted after the due date has passed. Late filers risk incurring penalties but may qualify for interest waivers. No late filing penalty or interest will be assessed if you expect a tax refund or do not owe any taxes.
How long can you go without filing taxes in Canada?
The Canada Revenue Agency states that a taxpayer has until 10 years after the calendar year ends to submit an income tax return. Penalties and even jail time increase the longer you go without submitting your taxes. No matter how long you’ve been late — a year, 5 years, or even 10 — you need to get your return in as soon as possible.
Do You Must File Taxes in Canada?
New Canadians and Canadians who have just entered the workforce may have questions about whether or not they are required to submit a Canadian Income Tax return, and if so, when they do so for the first time.
While most Canadian residents are expected to register with the Canada Revenue Agency (CRA) annually, some individuals are subject to different filing and timing requirements.
If any of the following apply to you, you must file a tax return immediately:
- The Canada Revenue Agency (CRA) has determined that you have a tax debt.
- You are required to pay into the Canada Pension Plan (CPP) since you are self-employed.
- The same applies to self-employed people’s contributions to Employment Insurance (EI) out of their business income.
- You and your spouse or common-law partner wish to divide your pension funds.
- You have a balance due because you used the Home Buyers’ Plan (HBP) or the Lifelong Learning Plan (LLP).
- You’ve sold real estate or non-registered assets. Even if you don’t owe any capital gains tax on the sale of your property or investments, you still need to report the transaction on your tax return (e.g. claiming the principal residence exemption).
- If you get benefits from Government (Canada Child Benefit, Guaranteed Income Supplement, Canada Pension Plan, Old Age Security, CERB) or the Employment Insurance and you received too much money, you must pay it back.
- You have collected advance payments from Canada Workers Benefit (CWB) throughout the tax year.
- You’ve received a “Request to File” from the CRA.
- If you have received a Demand to File from the CRA, the agency is taking action to enforce compliance with your failure to file.
- Your revenue came from a source in Canada.
- You have a financial obligation to the government.
Income generation in Canada
While your residence status in Canada has no bearing on whether or not you are required to file a Canadian income tax return, it does have an impact on how you file your taxes, the types of income you must disclose, and whether or not you qualify for certain credits or deductions. You are required to submit a tax return regardless of your resident status if you match any of the CRA’s above conditions.
You are required to submit a Canadian income tax return if you are a foreign resident who earns money from a Canadian source (such as a Canadian company, Canadian investments, or Canadian real estate).
No exceptions, regardless of age or profession
You have to submit a tax return whether you’re nine years old or ninety years old. The CRA anticipates receiving a tax return from you if you satisfy any of the aforementioned conditions.
Even students need to fill out tax forms. Even if they are still in school, your 17-year-old kid is required to file an income tax return if they earned more than $3,500 (after expenditures) operating a small company last summer. When anyone first begins to work and earn money, they are required to submit a tax return.
The deadline for paying taxes for the 2023 tax year is April 30th, 2024. If you don’t pay your taxes by this date, you will incur a 10% interest on the amount owed.
You have an unlimited amount of time to pay your taxes in Canada, however, there will be interest added on every month. If you end up owing too much money, the CRA may also contact you to discuss payment plans.
You can file your 2023 taxes as soon as you have received all your tax-related forms (T4, T4A, T3, T5 etc.).
No, you can pay your taxes at any time you want, but after April 30th, you will start to incur 10% interest on any amount owing.