Filing Your Tax Return

The mechanics of filing in Canada — deadlines, the three filing methods, instalment payments for those who owe more than $3,000, and the consequences of filing or paying late.

Deadlines

The default deadline for individual Canadian tax returns is April 30 of the year following the tax year. If April 30 falls on a weekend or holiday, the deadline shifts to the next business day.

Self-employed individuals (and their spouses) have until June 15 to file, but any tax owing is still due April 30. The extra time is for paperwork, not payment.

A return for a deceased person is generally due June 15 of the year following the year of death, or six months after the date of death, whichever is later. This is the terminal return.

Filing methods

There are three ways to file:

1. NETFILE — most common

Free or paid certified tax software (TurboTax, Wealthsimple Tax, StudioTax, UFile, and others) prepares the return and transmits it directly to CRA over the secure NETFILE service. NETFILE is the standard method for individuals. Refunds typically arrive within two weeks via direct deposit.

2. EFILE — for professionals

Tax preparers (CPAs, tax services) use EFILE — an authorised version of NETFILE for professional use. From your perspective the experience is the same: faster processing, electronic refund.

3. Paper

You can still file on paper using forms downloaded from CRA. Refunds for paper returns take materially longer (8 weeks or more) and the error rate is higher.

Instalment payments

If your net tax owing exceeds $3,000 in two of the last three years (higher threshold of $1,800 in Quebec), CRA will send instalment reminders expecting you to pay tax quarterly through the current year — typically March 15, June 15, September 15, and December 15.

You can use one of three methods for instalments:

  • No-calculation option (use the amount CRA sends)
  • Prior-year option (one-quarter of last year’s total tax)
  • Current-year option (estimate this year’s tax and divide)

You only pay interest if your instalments are too low; if they were too high, the overpayment comes back in your refund.

Late filing — penalties

If you owe tax and file late:

  • 5% of the balance owing
  • Plus 1% per month for up to 12 months

That base penalty doubles to 10% + 2% per month for up to 20 months if you have been assessed a late-filing penalty for any of the prior three years.

Filing on time even if you can’t pay is materially better than not filing — the late-filing penalty is separate from interest on the balance.

Late payment — interest

CRA charges compound daily interest on unpaid balances at a rate that resets quarterly (it has been in the 8–10% range in recent years). The rate is set to encourage prompt payment.

Refunds and direct deposit

If you set up direct deposit through CRA My Account, refunds typically arrive within two weeks of NETFILE submission. Direct deposit is also how the Canada Child Benefit, GST/HST credit, and CAIP arrive — set it up once and all government payments use it.

CRA My Account

The single most useful thing a Canadian taxpayer can do is set up CRA My Account. It shows your contribution room (RRSP, TFSA), benefit amounts, Notice of Assessment, prior years’ returns, and outstanding balances.

Sign-up uses your most recent Notice of Assessment for verification — keep it handy.

See also

Revised: