Canada · Canada Revenue Agency · Q4 2021 to Q4 2026
CRA prescribed interest rates by quarter.
Every quarterly rate the CRA charges on overdue amounts, pays on overpayments and uses for loans and taxable benefits, in one table.
For October 1 to December 31, 2026 the CRA rate on overdue taxes is 7%, it pays 5% on non-corporate overpayments and 3% on corporate overpayments, and the rate for loans and taxable benefits is 3%. The corporate pertinent-loans rate is 6.29%. All of these have held since Q3 2025 except the pertinent-loans rate, which moves each quarter.
Interest at a quarter’s rates
Result
Rates by quarter, Q4 2021 to Q4 2026
The CRA publishes one page per calendar quarter. Each row below is read from that quarter’s page. The CRA index names quarters back to 2006 but links pages only from Q4 2021, so the table starts there. Overdue amounts means income tax, Canada Pension Plan contributions and Employment Insurance premiums. The loans column is the rate the CRA gives for interest-free and low-interest employee and shareholder loans.
| Quarter | Dates | Overdue amounts | Overpaid, non-corporate | Overpaid, corporate | Loans and taxable benefits | Corporate pertinent loans |
|---|---|---|---|---|---|---|
| 2026 Q4 | October 1 – December 31 | 7% | 5% | 3% | 3% | 6.29% |
| 2026 Q3 | July 1 – September 30 | 7% | 5% | 3% | 3% | 6.30% |
| 2026 Q2 | April 1 – June 30 | 7% | 5% | 3% | 3% | 6.20% |
| 2026 Q1 | January 1 – March 31 | 7% | 5% | 3% | 3% | 6.36% |
| 2025 Q4 | October 1 – December 31 | 7% | 5% | 3% | 3% | 6.69% |
| 2025 Q3 | July 1 – September 30 | 7% | 5% | 3% | 3% | 6.62% |
| 2025 Q2 | April 1 – June 30 | 8% | 6% | 4% | 4% | 7.08% |
| 2025 Q1 | January 1 – March 31 | 8% | 6% | 4% | 4% | 7.78% |
| 2024 Q4 | October 1 – December 31 | 9% | 7% | 5% | 5% | 8.53% |
| 2024 Q3 | July 1 – September 30 | 9% | 7% | 5% | 5% | 8.96% |
| 2024 Q2 | April 1 – June 30 | 10% | 8% | 6% | 6% | 9.04% |
| 2024 Q1 | January 1 – March 31 | 10% | 8% | 6% | 6% | 9.16% |
| 2023 Q4 | October 1 – December 31 | 9% | 7% | 5% | 5% | 8.99% |
| 2023 Q3 | July 1 – September 30 | 9% | 7% | 5% | 5% | 8.44% |
| 2023 Q2 | April 1 – June 30 | 9% | 7% | 5% | 5% | 8.40% |
| 2023 Q1 | January 1 – March 31 | 8% | 6% | 4% | 4% | 8.00% |
| 2022 Q4 | October 1 – December 31 | 7% | 5% | 3% | 3% | 6.45% |
| 2022 Q3 | July 1 – September 30 | 6% | 4% | 2% | 2% | 5.20% |
| 2022 Q2 | April 1 – June 30 | 5% | 3% | 1% | 1% | 4.38% |
| 2022 Q1 | January 1 – March 31 | 5% | 3% | 1% | 1% | 4.15% |
| 2021 Q4 | October 1 – December 31 | 5% | 3% | 1% | 1% | 4.17% |
How the quarterly rate is set
Section 4301 of the Income Tax Regulations builds every rate from one base: the simple mean of the average yield on three-month Government of Canada Treasury Bills sold at auction in the first month of the preceding quarter, rounded up to the next whole percentage. Overdue amounts get the base plus 4 points. Overpayments to a non-corporate taxpayer get the base plus 2, and to a corporation the base alone. Loans and most other uses of a prescribed rate take the base. The pertinent-loans rate drops the rounding and adds 4 points, which is why it carries two decimals.
Check it against Q4 2026: a base of 3% gives 3% on loans, 5% on non-corporate overpayments and 7% overdue, exactly as the CRA page states. The 6.29% pertinent-loans rate implies a Treasury Bill mean of 2.29%, which rounds up to that 3% base.
Worked example: a family loan and the rate in force when it was made
Under subsection 74.5(2) of the Income Tax Act, the attribution rules do not apply to income from lent property if interest is charged at no less than the lesser of the prescribed rate in effect when the loan was made and an arm’s-length rate, and the interest for each year is paid within 30 days after year-end. Take a hypothetical $200,000 loan. Made in Q2 2022, the table shows 1%, so the minimum interest is $2,000 a year. A loan made in Q4 2022 shows 3%, so $6,000 a year, and a loan made in Q4 2026 also shows 3%, so $6,000. The rate is the one in force when the loan was made, and the table lets you read it off for the quarter.
This is an illustration of the arithmetic only. Whether a loan meets every condition of the section is a tax-advice question.
Common mistakes and edge cases
- Using today’s rate for an older loan. A family loan is judged on the rate in effect when it was made.
- Mixing up the three columns. The overdue rate is what you owe the CRA; the two overpayment rates are what it owes you.
- Reading a rate for a quarter that has not been announced. The table ends at Q4 2026; Q1 2027 will appear on the CRA index when announced.
- Assuming the same rate applies to every tax. The CRA lists GST/HST, excise and other charges separately on each quarter page, and some old excise duty and brewer licensee rates differ.
What this does not cover
This page does not compute the CRA’s arrears interest, which depends on the rate in force each day; use the CRA interest calculator for that. The estimator above is simple interest at one quarter’s rate, not the CRA’s own calculation. The table does not include provincial rates, quarters before Q4 2021, or the separate GST/HST, excise and other-tax rows that the CRA prints on each quarter page.
Frequently asked questions
What are the CRA prescribed interest rates for Q4 2026?
For October 1 to December 31, 2026 the CRA rate on overdue taxes, CPP contributions and EI premiums is 7%. It pays 5% on non-corporate overpayments and 3% on corporate overpayments. The rate for taxable benefits from low-interest loans is 3%, and the corporate pertinent-loans rate is 6.29%.
How is the CRA prescribed rate set?
Income Tax Regulations section 4301 takes the mean three-month Treasury Bill yield from the first month of the preceding quarter, rounded up to a whole percentage, as the base. Overdue amounts are base plus 4, non-corporate overpayments are base plus 2, and corporate overpayments and loans use the base.
Which rate applies to a loan to a spouse or family member?
Subsection 74.5(2) of the Income Tax Act refers to the prescribed rate in effect at the time the loan was made, or an arm's-length rate if lower, with interest paid within 30 days after the end of each year. Read the rate for the quarter the loan was made from the table.
What was the highest CRA overdue interest rate in this table?
10%, in both Q1 2024 and Q2 2024. The lowest was 5%, from Q4 2021 through Q2 2022.
Why do the overdue and overpaid rates differ?
Regulation 4301 adds 4 points to the base for amounts owed to the CRA, 2 points for overpayments to non-corporate taxpayers and none for corporations, so the three rates always sit 2 points apart in a quarter.
When do the rates change?
Prescribed rates are calculated quarterly, so they can change on January 1, April 1, July 1 and October 1. The CRA announces each quarter's rates on its prescribed interest rates index.
What does the 6.29% corporate pertinent-loans rate mean?
It is the section 17.1 rate: the same Treasury Bill mean without rounding, plus 4 points, shown to two decimals. For Q4 2026 that implies a mean yield of 2.29%.
Sources
Retrieved October 20, 2026. Each CRA quarter page below returned HTTP 200; the figures in the table are read from those pages.
- Canada Revenue Agency, Prescribed interest rates (index of quarters)
- Canada Revenue Agency, Interest rates for the fourth calendar quarter of 2026
- Canada Revenue Agency, Interest rates for the third calendar quarter of 2025
- Canada Revenue Agency, Interest rates for the first calendar quarter of 2024
- Canada Revenue Agency, Interest rates for the fourth calendar quarter of 2021
- Justice Laws, Income Tax Regulations, section 4301 (prescribed rate of interest)
- Justice Laws, Income Tax Act, section 74.5 (loans for value, subsection 74.5(2))
Reference, not tax advice
Rates are copied from the CRA pages linked above and applied in your browser, with nothing sent anywhere. The CRA sets the rate that applies to your account.