Using a Personal Loan for Tax Bills
Owing more than expected at tax time can be stressful, especially with penalties and interest accruing on any unpaid balance. A personal loan can cover your tax bill in full, often at a lower rate than the CRA charges on an unpaid balance. It's one of several reasons Canadians borrow that we cover in detail.
What It Typically Covers
- Outstanding personal income tax owed
- CRA interest and penalty charges
- Self-employment or freelance tax bills
- Provincial tax balances
Eligibility Requirements
- 18 years or older (19 in BC, NB, NL, NS, NT, NU, and YT)
- Canadian citizen or permanent resident
- Valid Social Insurance Number (SIN)
- Active bank account in your name
- A regular source of income
How Much Do You Typically Need?
For tax bills, borrowers often look at around $2,000 — though the right amount depends on your specific situation.
Pros
- Fast approval — often within minutes
- Soft credit check only, so checking rates doesn't hurt your score
- Repayment term sized to the amount, keeping payments manageable
- Available to a wide range of credit profiles
Things to Consider
- Compare this loan's APR against the CRA's current prescribed interest rate on unpaid balances — a lower-rate loan can save money.
- The CRA does offer payment arrangements directly — worth calling before assuming a loan is your only option.
- If this happens annually, consider setting aside a percentage of income throughout the year to avoid repeat borrowing.
How to Apply for a Tax Bills Loan
Step 1
Apply in 2 minutes
Tell us you're covering tax bills and a bit about your situation. No paperwork.
Step 2
Compare offers
See real offers from vetted lenders, matched to your credit profile.
Step 3
Get funded
Accept an offer and funds typically land within 24 hours.