CRA Late-Filing Penalty & Interest Calculator
The 2025 Canadian tax return is due April 30, 2026. This tool estimates your late-filing penalty (ITA s.162) and CRA arrears interest if you miss the deadline — and shows you what to do if you can't pay in time.
Still need to file? See our April 30 countdown & 5-step filing checklist and 12-item deduction sweep — built for the final-days crunch.
Your situation
Enter 0 if you're owed a refund.
Q2 2026 published rate: 7%. Check CRA.
Late-filing penalty + interest apply
File as soon as possible, even if you can't pay. The 5% + 1%/month penalty is calculated on balance owing and compounds monthly until you file (max 12 months). Filing stops the penalty clock; interest continues until paid.
Breakdown
| Balance owing | $5,000 |
| Filing late (0 full months) | ⚠ |
| Payment late (14 days) | ⚠ |
| Late-filing penalty | $250 |
| Arrears interest (daily compounded) | $13 |
| Total | $5,263 |
Decision guide — what to do next
If you're owed a refund: No penalty, no interest. File at your own pace (but file within 10 years to avoid losing the refund, and file to keep receiving GST/HST credit, CCB, CWB).
If you owe and can pay: File and pay by April 30. Pay online through CRA My Account, online banking, or Interac e-Transfer to pay.cra.
If you owe but can't pay in full: File anyway. Filing on time with zero payment is always cheaper than filing late. Then arrange a payment plan through CRA's payment arrangement tool. Interest keeps running at 7% but no late-filing penalty.
If you're self-employed: Payment is due April 30, filing is due June 15. Interest starts May 1 on any unpaid balance, but no late-filing penalty until June 16.
Already received a CRA demand to file (s.162(2))? Penalty doubles to 10% + 2%/month, capped at 20 months. File immediately — every month costs 2% of balance.
How the penalty + interest stack
Late-filing penalty (s.162(1)) — 5% of balance owing + 1% of balance per full month late, up to 12 months (max total 17%). Applies only if there's a balance owing at the payment due date AND filing is late. Filing stops the monthly clock immediately.
Repeat-offender penalty (s.162(2)) — 10% + 2%/month, capped at 20 months (max 50%). Triggered when CRA issued a demand to file under s.150(2) in any of the three previous tax years and a late-filing penalty was already assessed.
Arrears interest (s.161(1)) — Compounds daily at the CRA prescribed rate from May 1 until paid. 7% in Q2 2026 (base 3% + 4pp surcharge). Interest applies to unpaid balance plus any assessed penalty. Interest is not deductible for personal taxes.
Frequently asked questions
What is the CRA late-filing penalty?
5% of balance owing + 1% per full month late (first offence, capped 12 months) or 10% + 2%/month (repeat, capped 20 months). No penalty if no balance owing.
How much is CRA arrears interest?
7% annual, compounded daily, for Q2 2026 (Apr 1 – Jun 30). Starts May 1 on any unpaid balance from April 30.
Can't pay April 30 — should I file late?
No. File on time, pay what you can, then arrange a payment plan. Late-filing penalty is far more expensive than arrears interest alone.
Self-employed deadline?
File by June 15, 2026. Pay by April 30, 2026. Interest (but not penalty) accrues between May 1 and June 15 on unpaid balance.
What if I'm getting a refund?
No penalty, no interest. But you have 10 years to claim a refund, and filing is required to receive ongoing benefits (CCB, CWB, GST/HST credit).
Related Tax Insights
Sources
Last updated April 2026. Reflects 2025 tax year rules, April 30, 2026 filing deadline, and CRA Q2 2026 prescribed interest rate of 7%. Interest rate may change for Q3 — check the CRA page linked above. Consult a CPA or CRA for complex situations (objections, taxpayer relief, voluntary disclosures).