Payment Plans in Quebec
Reviewed by the Commoner Law Editorial Team. 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 money to the CRA and cannot pay the full amount right away, you can set up a payment arrangement under Section 220(3.1) of the Income Tax Act.
A payment plan lets you pay your tax debt in regular instalments over time. However, interest continues to accumulate on your balance. The CRA charges a prescribed interest rate (updated quarterly) on overdue amounts, compounded daily.
You can set up a payment arrangement online through My Account or by calling the TeleArrangement line at 1-866-256-1147. Many plans can be approved automatically if they meet CRA guidelines.
You must keep filing future tax returns on time, even while you are on a payment plan. Missing a filing deadline can cause the CRA to cancel your arrangement.
When does it apply?
This applies to any individual or business that owes money to the CRA.
- It covers income tax, GST/HST, payroll deductions, and benefit repayments.
- 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
- File your tax return on time, even if you cannot pay — filing late adds extra penalties.
- Pay as much as possible upfront to reduce the interest that builds up.
- Calculate an affordable monthly amount based on your income and expenses.
- Set up pre-authorized debit (PAD) through My Account for automatic payments.
- Make your first payment on schedule — missing the first payment can cancel the arrangement.
What should you NOT do?
- Don't ignore collection letters — the CRA can garnish your wages, freeze your bank accounts, and seize your assets.
- Don't miss a payment without calling CRA first — contact them before the due date to renegotiate.
- Don't assume a payment plan stops interest — interest at the CRA's prescribed rate keeps growing on the unpaid balance every day.
- Don't forget that CRA can offset benefits against your debt — your GST/HST credit or CCB payments may be applied to what you owe.
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
When does payment plans apply?
This applies to any individual or business that owes money to the CRA.It covers income tax, GST/HST, payroll deductions, and benefit repayments.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?
File your tax return on time, even if you cannot pay — filing late adds extra penalties.Pay as much as possible upfront to reduce the interest that builds up.Calculate an affordable monthly amount based on your income and expenses.Set up pre-authorized debit (PAD) through My Account for automatic payments.Make your first payment on schedule — missing the first payment can cancel the arrangement.
What mistakes should I avoid with payment plans?
Don't ignore collection letters — the CRA can garnish your wages, freeze your bank accounts, and seize your assets.Don't miss a payment without calling CRA first — contact them before the due date to renegotiate.Don't assume a payment plan stops interest — interest at the CRA's prescribed rate keeps growing on the unpaid balance every day.Don't forget that CRA can offset benefits against your debt — your GST/HST credit or CCB payments may be applied to what you owe.
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