3 min
CRA interest on unpaid taxes: the current rate
Quick summary
For October 1 to December 31, 2026 the CRA rate on overdue income tax is 7%, and the rate on refunds it owes you is 5%. Interest starts the day after the due date. If you also filed late, see thelate-filing penalty.
Checked November 3, 2026. Main source: CRA: Interest rates for the fourth calendar quarter 2026 (modified Aug. 28, 2026). See all 2 sources.
Rates for the fourth quarter of 2026
| Type | Rate, Oct 1 to Dec 31, 2026 |
|---|---|
| Overdue income tax, CPP and EI | 7% |
| Refund owed to an individual | 5% |
How the interest works
- It starts the day after the due date.
- The CRA charges compound daily interest. That means interest is added each day to what you owe, including earlier interest.
- If the due date falls on a weekend or holiday, a payment is on time if the CRA gets it by the next business day.
- The CRA sets rates every three months, so the rate can change on January 1, 2027.
How to slow it down
- Pay what you can now. Interest grows on the unpaid part.
- File on time even if you cannot pay, to avoid the late-filing penalty.
Questions people ask
What interest rate does the CRA charge in 2026?
7% on overdue income tax for October 1 to December 31, 2026. The CRA sets the rate every quarter.
Does CRA interest compound?
Yes. The CRA says it charges compound daily interest starting the day after the due date.