How do I know if I owe money to the CRA?

The most reliable way is to log into My Account at canada.ca/my-cra-account. Your account summary will show any balance owing under "Tax return status" or "Account balance." You can also call 1-800-959-8281 and CRA will tell you your current balance after you verify your identity. The Notice of Assessment you receive after filing also shows your balance owing or refund amount.

Can I owe CRA money without knowing it?

Yes. Unreported income, incorrect RRSP or TFSA contribution tracking, unreported foreign income, rental income not declared, and employer payroll errors can all create balances owing that you are unaware of until CRA sends a letter. CRA can reassess returns up to 3 years after the original assessment for most taxpayers (10 years if fraud is suspected). Always check My Account if you receive any CRA correspondence.

What happens if I ignore a CRA balance owing?

CRA charges prescribed interest (currently 9% annually, compounded daily) on unpaid balances. They can also garnish wages, seize bank accounts, register a lien on your property, or intercept future tax refunds and government benefits. CRA will typically send a series of letters (arrears notice, demand letter, collections letter) before taking enforcement action. Paying or making a payment arrangement stops enforcement.

How long does it take for a CRA balance to show up in My Account?

After filing, CRA typically processes returns and updates My Account within 2 weeks for NETFILE submissions and 8 weeks for paper returns. If you filed and do not see a result after those timelines, your return may still be processing. Payment arrangements and payments you have already made typically show in My Account within 3–5 business days.

What should I do if I owe CRA but cannot afford to pay?

Call CRA at 1-888-863-8661 (individual tax debt) to set up a payment arrangement. CRA does not require you to pay everything immediately and will allow monthly payments based on your ability to pay. Interest continues to accrue on unpaid balances even during a payment arrangement, so pay as much as you can afford. Alternatively, if your debt is over $10,000, a licensed insolvency trustee can review whether a consumer proposal would settle the debt for less.

Does a tax balance owing affect my credit score?

CRA debt itself is not reported to Equifax or TransUnion, so it does not directly appear on your credit report. However, if CRA registers a lien on your property, that can appear in property title searches and affect your ability to refinance or sell. If CRA refers your debt to a collections agency (rare but possible), that collection account would be reported to the credit bureaus.

What is the interest rate CRA charges on overdue taxes?

CRA charges the prescribed interest rate plus 4 percentage points on personal tax debt. The prescribed rate is set quarterly and is currently 5% (Q1 2026), making the effective rate 9%. This compounds daily. Late-filing penalties (5% of balance owing + 1% per month for up to 12 months) are added separately if you filed late; these are in addition to the interest charges.

How Do I Know If I Owe CRA Money?

Not sure if you owe the Canada Revenue Agency? You are not alone — many Canadians discover a balance owing only when they receive an unexpected letter. The good news is that checking your status takes about five minutes.

The three ways to check if you owe CRA

1. CRA My Account (fastest and most complete)

Log into My Account at canada.ca/my-cra-account. Once inside, navigate to:

Tax return status — shows results for each year you filed
Account balance — shows your current total balance owing or credit

Your balance is shown in real time, including interest accrued to date. You can also see individual tax years in detail to understand what caused a balance.

If you have not registered for My Account, you can sign up using your most recent tax return (CRA will mail you an access code within 5–10 business days, or you can verify instantly through a Sign-In Partner like your bank).

2. Notice of Assessment (NOA)

After CRA processes your return, they issue a Notice of Assessment. It shows:

Section	What it tells you
Line 48400	Your refund amount (if any)
Line 48500	Your balance owing (if any)
RRSP deduction limit	Your carry-forward room for next year
Unused tuition credits	Transferred or carried forward amounts

The NOA is mailed to your address on file and is also available in My Account under “Mail.” If the amount on line 48500 is greater than zero, you owe that amount. If you owe, the NOA will show the payment due date (usually April 30 for most filers).

3. CRA automated phone line

Call 1-800-959-8281 (individuals). Follow the prompts to check:

Your current account balance
The date and amount of your last payment
Whether a return has been assessed

You will need your SIN and the answer to a security question (usually your birth date and an amount from a recent return).

What causes an unexpected CRA balance?

Cause	How it happens
Unreported income	Freelance, rental, gig economy (Uber, Airbnb) not declared
Employer withholding error	Too little tax deducted throughout the year
RRSP over-contribution	Contributed more than your deduction limit
TFSA over-contribution	1% per month penalty tax assessed
Installment payments missed	Self-employed or investor who missed quarterly installments
Retroactive pay increase	Lump-sum payments not tax-withheld correctly
Clawback of benefits	OAS or EI clawback triggered by higher income
Foreign income not reported	Income from a foreign employer or investments
Reassessment by CRA	CRA reviewed your return and disallowed a deduction

Understanding your Notice of Assessment

When you receive your NOA, check these lines in order:

Line 48500 — Balance owing: Any amount here is due by April 30 of the same year (or June 15 if you or your spouse is self-employed, but interest starts April 30 regardless).
Date of assessment: Check the assessment date against the date you filed. If CRA changed something, compare the NOA to your original return.
Explanation of changes: Any deductions or credits CRA disallowed will be listed. If you disagree, you can file a T1-ADJ (adjustment request) or a Notice of Objection.
RRSP deduction limit: Verify this matches your expected room based on prior year income.

What to do if you owe CRA

If you can pay in full

Pay by the due date to avoid interest. Methods accepted:

Online banking bill payment (payee: “CRA (revenue) — 2025 tax year”)
My Payment at canada.ca/my-cra-account (Interac or credit card via PaySimply)
In person at any Canada Post outlet with a QR code from My Account
Pre-authorized debit

If you cannot pay in full

Call 1-888-863-8661 to request a payment arrangement. CRA will generally agree to an arrangement if:

You can explain your financial situation
You propose a specific monthly payment amount and end date
You have filed all outstanding returns (CRA will not set up arrangements if returns are missing)

Interest continues to accrue during the arrangement, so larger monthly payments save money.

If you disagree with the amount

You have 90 days from the date of the NOA to file a Notice of Objection using Form T400A or through My Account. Filing an objection does not stop interest from accruing, but CRA collections activities are generally paused while the objection is under review.

CRA collection timeline

If you do not respond to a balance owing, CRA typically escalates in this order:

Stage	Typical timeline	Action
Arrears notice	2–4 weeks after assessment	Letter showing balance + interest
Demand notice	4–8 weeks after first notice	Formal demand for payment
Collections review	8–12 weeks	Account assigned to collections officer
Garnishment / setoff	After collections review	Wages garnished, refunds seized, bank account frozen
Lien on property	When other methods fail	Registered against real estate

Calling CRA proactively at any stage before enforcement begins typically stops escalation.