Payment Plans — Quebec
Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
If you owe and you can't pay in full, the CRA will almost always work with you on a payment arrangement — discretionary authority that runs through section 220(3.1). The agency would rather collect over time than not at all.
An arrangement spreads the debt over instalments, but interest keeps accruing. The CRA's prescribed interest rate updates quarterly and compounds daily — which is why even small balances grow noticeably if you stretch the timeline.
You can set one up online through My Account or by calling the TeleArrangement line at 1-866-256-1147. Many plans get rubber-stamped automatically if they fit CRA guidelines.
The condition that trips most people: you must keep filing future returns on time while you're on the plan. Miss a filing deadline and CRA may cancel the arrangement and revert to collection.
When does it apply?
Applies to any individual or business with a CRA balance owing.
- Covers income tax, GST/HST, payroll deductions, and benefit overpayments.
- You can request a plan whether you owe a few hundred dollars or tens of thousands.
What to Do If You Owe Taxes to the CRA and Can't Pay in Full
The first rule of tax debt: file on time even when you can't pay. Filing late adds penalties on top of interest.
- File on time, even with nothing attached. Penalty avoidance is free.
- Pay as much as you can up front — daily-compounded interest makes the difference larger than it looks.
- Set a realistic monthly amount based on actual income and expenses, not aspiration.
- Use pre-authorised debit (PAD) through My Account to automate it.
- Make the first payment on schedule. Missing it tends to nuke the whole arrangement.
What should you NOT do?
- Don't ignore collection letters. CRA can garnish wages, freeze bank accounts, and seize assets without going to court.
- Don't miss a payment in silence. Call before the due date to renegotiate — the agency will, the system won't.
- Don't assume a payment plan freezes interest. It doesn't — the prescribed rate keeps compounding daily.
- Don't forget that CRA can offset benefits. Your GST/HST credit or CCB can be redirected against the balance owing.
How Quebec differs from federal law
If you owe provincial taxes to Revenu Quebec, you may be able to arrange a payment agreement. This is separate from any federal tax debt you may owe to the CRA.
- Revenu Quebec may agree to a payment arrangement if you cannot pay your full provincial tax balance at once. You must contact Revenu Quebec to propose a plan — there is no automatic right to installments.
- Interest continues to accrue on the unpaid balance during the payment arrangement. The interest rate is set quarterly by Revenu Quebec and is generally comparable to the CRA rate.
- You must file all outstanding tax returns before Revenu Quebec will consider a payment arrangement. You must also stay current on future tax obligations during the agreement.
- If you fail to meet the terms of a payment arrangement, Revenu Quebec can take collection action, including garnishing wages, seizing bank accounts, or registering a legal hypothec (the Quebec civil law equivalent of a lien) on your property.
- For federal taxes owed, you deal separately with the CRA. It is possible to have payment arrangements with both agencies at the same time.
Additional Steps in Quebec
Contact Revenu Quebec at 1-800-267-6299 (individuals) to discuss payment options for provincial tax debts. Have your Social Insurance Number and recent notice of assessment ready. You can also log into your My Account on the Revenu Quebec website (revenuquebec.ca) to view balances and manage payments.
Relevant Law: Tax Administration Act (CQLR c A-6.002), ss. 12-14
Common Questions
What is the payment plans right in Canada?
If you owe and you can't pay in full, the CRA will almost always work with you on a payment arrangement — discretionary authority that runs through section 220(3.1). The agency would rather collect over time than not at all.An arrangement spreads the debt over instalments, but interest keeps accruing. The CRA's prescribed interest rate updates quarterly and compounds daily — which is why even small balances grow noticeably if you stretch the timeline.You can set one up online through My Account or by calling the TeleArrangement line at 1-866-256-1147. Many plans get rubber-stamped automaticall...
When does payment plans apply?
Applies to any individual or business with a CRA balance owing.Covers income tax, GST/HST, payroll deductions, and benefit overpayments.You can request a plan whether you owe a few hundred dollars or tens of thousands.
What should I do if I owe money to the CRA in Canada but can't afford to pay it all at once?
The first rule of tax debt: file on time even when you can't pay. Filing late adds penalties on top of interest.File on time, even with nothing attached. Penalty avoidance is free.Pay as much as you can up front — daily-compounded interest makes the difference larger than it looks.Set a realistic monthly amount based on actual income and expenses, not aspiration.Use pre-authorised debit (PAD) through My Account to automate it.Make the first payment on schedule. Missing it tends to nuke the whole arrangement.
What mistakes should I avoid with payment plans?
Don't ignore collection letters. CRA can garnish wages, freeze bank accounts, and seize assets without going to court.Don't miss a payment in silence. Call before the due date to renegotiate — the agency will, the system won't.Don't assume a payment plan freezes interest. It doesn't — the prescribed rate keeps compounding daily.Don't forget that CRA can offset benefits. Your GST/HST credit or CCB can be redirected against the balance owing.
Payment Plans in other states
Same topic, different jurisdiction. Pick the one that applies to you.