Pre-authorized Withdrawals (PAWS)

Pre-authorized withdrawals (PAWS) is an optional prepayment plan that provides an opportunity for taxpayers and residents to make payments towards property taxes and/or user rates through an automatic deduction from their bank account.

Pre-authorized Withdrawals for Property Taxes

The plan helps prepay for the upcoming tax year. Installments are withdrawn on the fifteenth (15) of each month. The City pays interest on any credits at the end of each month (except May and June). The interest rate is set by the Lieutenant Governor in Council, and the rate is updated quarterly. 

The plan runs from July to June each year for a total of twelve (12) installments; however, taxpayers can apply at any time.

The later in the year you enroll in the plan, the number of monthly withdrawals will be less. The estimated property taxes will be divided over less payments and the suggested monthly amount may be higher. The City will recalculate the monthly installment to be withdrawn over the next 12 months effective July 15th and this amount will be reflected on your Property Tax Notice. 

If there is a balance outstanding on your tax account when the Tax Notice is issued (end of May), the City will not withdrawal the remaining balance, and a manual payment must be made.

It is the responsibility of the registered owner to claim the Home Owner Grant (if eligible) before the tax due date each year to avoid penalties.

Please note: to start pre-authorized withdrawals, current year taxes must be paid in full.

Example:

Jan 7, 2025: Property owner applies for installment plan. The City requires 10 business days notice before the upcoming scheduled withdrawal date to add the property to the plan. The City estimates the 2025 Taxes to be collected via installment plan to be  $3,400.00.  That total of $3,400 will be divided by 5 months. The monthly prepayment amount will be $680.00 based on this estimate. 

Feb 15, 2025: First installment payment of $680 is withdrawn. This amount will be withdrawn on the 15th of March, April, May and June.

Late May 2025: Property owner receives their tax notice. The Total Prepayment amount includes the 5 withdrawals plus interest earned. Note: The May and June withdrawals will be reflected on the tax notice even though they may not have been withdrawn. Property owner is responsible for ensuring that the 'Total Taxes Due' is 0 or is showing a credit balance. If not, the property owner is required to make a separate manual payment and claim the Home Owner Grant (if eligible) by the tax due date to avoid penalties. 

The tax notice will reflect the upcoming monthly withdrawal effective July 15th. The upcoming year's taxes will be divided by the full cycle of 12 months from July 15th to June 15th inclusive. 

Pre-authorized Withdrawals for User Rates

The City of Nanaimo offers an Auto-Debit payment plan. Enrolling in this plan will prevent any outstanding balance from transferring to property taxes and accruing daily interest on January 1st each year.

Auto Debit

The total invoice amount, inclusive of the discount, will be withdrawn on the due date (approximately every four months).

Enrolling in or Modifying a Plan

Please ensure you have read the Terms & Conditions before enrolling in the plan.

You will have the option of enrolling in both the Property Tax and the User Rates Auto-Debit plan when completing either of the forms below, however, if you are enrolling in one of the plans only please select the appropriate form.

• Property Tax  Online Application Form 
• User Rates Online Application Form
• PDF Pre-Authorized Withdrawal Plan Application Form

Please check our FAQ page for more information.