Updated Checked by the Tax-Services.ca editorial team How we check
Income tax companies, in the sense most people search it, are the businesses that prepare and file your return for a fee. That covers chains, independent shops, software makers and discounters. We’re assuming that meaning here (if you meant the tax a corporation pays, see our page on choosing a tax firm). The one fact to hold on to: the CRA says only providers it has screened and approved can file electronically for clients.
What kinds of income tax companies are there?
The CRA’s EFILE page names two kinds of approved provider, tax preparation service providers and discounters. Everything else on the market sits on top of those, and we won’t rank any of them, since we couldn’t verify claims about named companies.
| Type | What the CRA page says | What to ask |
|---|---|---|
| Tax preparation service | Approved to file your return electronically, current year and first seven prior years | Price, who prepares it, copy of your return |
| Discounter | Also an approved EFILE participant. Discounters can pay an advance on the refund, based on the expected amount | Total cost of the advance, in dollars |
| Anyone not approved | Can’t offer EFILE to clients | How will the return actually be filed? |
Is an advance on your refund worth it?
Often not. Here’s a case: an Ontario employee earning $60,000 has $9,000 withheld during 2026. The tax refund calculator shows income tax of $8,320.50 and a refund of $679.50.
That’s the whole pot.
Any charge on an advance comes out of $679.50, and the CRA usually processes a refund within two weeks of an electronic filing anyway (that’s the CRA’s own wording for EFILE returns). So before you take an advance, ask what it costs in dollars and how much sooner you’d get the money.
The CRA describes the product in one sentence:
A discounter will calculate your expected tax refund and give you one up-front payment before filing your return.
Discounter information for individuals, canada.ca
The same page says the fee is the gap between your calculated refund and the advance, and that a discounter must pay at least 85 cents on the dollar for the first $300 of the refund and at least 95 cents on each dollar above that. On $679.50 that means an advance of at least about $616, so the fee can’t be more than about $64. That’s our own arithmetic from the CRA’s floor. A few bucks might not sound like much, but it’s close to one dollar in ten of your refund, to get money two weeks sooner.
How can you tell a solid company from a risky one?
Ask it to prove it can file.
A real provider is approved for EFILE, has you sign Form T183, and gives you a copy. If it wants a signature on a blank form, or won’t say who prepares the return, that’s your answer.
Watch the promises too. A refund depends on your income and claims, so nobody can quote it before seeing your slips. A company that promises a big number up front is guessing, or worse.
And be careful with online access. The CRA says preparers must request authorization for individuals through Represent a Client, and you approve it in your own CRA account. There’s no reason to hand over your password.
Should you use an income tax company at all?
Depends on your year. For one T4 and the basic credits, you can work out the answer yourself: at $60,000 the income tax calculator shows 13.9% of income going to federal and Ontario tax, or $8,320.50. Check it against the slip and you know what to expect.
Add a rental, a side business or a big RRSP claim and the sums change. A $5,000 deduction on that same $60,000 lowers the tax to $7,103.72, a saving of $1,216.78. Our RRSP calculator is a quick way to see what a contribution does over time. If a company doesn’t find a claim like that, ask why not.
Think about what you actually want to buy. Some people pay for the numbers. Others pay to have someone else deal with the stress, and that’s a legitimate thing to pay for. Just be honest with yourself about which one it is, then compare quotes for that.
What should you check after the return is filed?
Look at the notice of assessment when it arrives and compare it with your copy of the return. If a number differs, call the company first, then the CRA. Keep your slips, receipts and T183 for at least six years, as the CRA advises.
The CRA also reminds you that you are responsible for the accuracy of what’s filed, even if a company prepared it. So read the return before you sign.
Where do these facts come from?
EFILE, discounter, T183, Represent a Client and record-keeping points come from Canada Revenue Agency pages we read on September 30, 2026. The dollar examples come from our calculators, using 2026 rates. We have no link with the CRA or any government body, and we name no company.
Frequently asked questions
What is a discounter?
The CRA lists discounters as approved EFILE participants. Its page says they can pay an advance on your refund based on the amount expected.
Can any company file my return electronically?
No. The CRA says only providers it has screened and approved can offer EFILE to clients.
How long does a refund take after electronic filing?
The CRA says your notice of assessment and refund are usually processed within 2 weeks.
Who is responsible if the return has a mistake?
You are. The CRA says you must give accurate information and review the return before you authorize filing.
What do income tax companies charge?
We couldn't confirm fees on an official page. Ask for the total price in dollars before you agree.
- How Canadian income tax works: brackets and credits
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