Canada Revenue Agency · Interest
CRA interest on taxes owing.
Add up the daily-compounded interest on an unpaid balance using CRA’s published quarterly rates.
CRA charges compound daily interest starting the day after the due date. The prescribed rate on overdue taxes is 7% for every quarter of 2026 (8% in the first half of 2025).
Inputs
Result
Enter an amount and dates, then press Calculate interest.
Prescribed rates used
CRA sets the interest rate on overdue taxes every quarter. The rates in this tool, from CRA’s quarterly pages, are 8% for January 1 to June 30, 2025, 7% for July 1, 2025 to September 30, 2025, 7% for October 1 to December 31, 2025, and 7% in each quarter of 2026. The interest compounds daily, so the tool applies the rate divided by 365 to the running balance for each day after the due date, up to and including the day you pay.
Rates for 2027 had not been published when this was retrieved. For days after December 31, 2026, the tool carries the last published 7% rate forward and tells you how many days used that assumption. When CRA publishes the first 2027 quarter, the table will be updated.
CRA’s own figure can differ by a few cents because of rounding and its day-count method, so treat this as an estimate. CRA also applies the overdue-taxes rate to unpaid CPP contributions and EI premiums, but this tool is built for a personal income tax balance.
Sources, retrieved October 2026: Canada.ca — Prescribed interest rates, 2026 Q4 (the sibling pages for each quarter from 2025 Q1 to 2026 Q3 supply the earlier rates) and Canada.ca — Late-filing penalty and interest (compound daily interest starting the day after the due date).
Frequently asked questions
What interest rate does CRA charge on taxes owing?
CRA sets a prescribed rate each quarter. It is 7% for each quarter of 2026. It was 8% in the first half of 2025.
How is CRA arrears interest calculated?
It compounds daily, starting the day after the due date, on unpaid amounts, so earlier interest is included in the balance. This tool applies the annual rate divided by 365 each day.
When does interest start for a self-employed person?
On the day after April 30, not June 15. The June 15 date only extends the time to file.
What rate will apply in 2027?
CRA had not published any 2027 quarter when this page was prepared. Days after December 31, 2026 use the last published 7% rate until it does.
Estimate only
Estimate only. CRA computes the final amount on your account. Days after December 31, 2026 use the last published rate until CRA publishes new quarters.