Interest on taxes you owe
If you have a balance owing for 2023 and are unable to pay it by the April30 payment due date, theCRA will charge you compound daily interest starting May1, 2024, on any unpaid amount owing for 2023. This includes any balance owing if the CRA reassesses your return.
If April30 is on a Saturday, Sunday or public holiday
When the due date falls on a Saturday, Sunday or public holiday recognized by theCRA, your return is considered on time if theCRA receives it or if it is postmarked on or before the next business day. Your payment is due by the first business day after April30. For more information, see Due dates and payments dates. Interest on your balance owing begins to accrue on the second business day.
The interest rate that theCRA charges on current or previous balances owing can change every threemonths based on prescribed interestrates.
Tax instalment interest
If theCRA requires you to pay tax instalments, you have to pay the instalments by the instalment payment due dates. If you miss any of these payment due dates, you may have to pay instalment interest.
Penalty for filing your tax returnlate
If you file your tax return after the duedate and have a balance owing, you will be charged a late-filing penalty. Filing late may also cause delays to your benefit and creditpayments.
If you cannot pay your balance owing, you should still file on time to avoid being charged the late-filingpenalty.
The late-filing penalty is 5% of your 2023 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12months.
If theCRA charged you a late-filing penalty for 2020, 2021 or 2022 and requested a formal demand for a return, your late-filing penalty for 2023 will be 10% of your balance owing. You will be charged an additional 2% for each full month that you file after the due date, to a maximum of 20months.
The late-filing penalty still applies when you get interest relief if you received COVID-19 benefits (Archived).
Tax instalment penalty
You may have to pay a penalty if your instalment payments are late or less than the required amount. The CRA applies the instalment penalty only if your instalment interest charges for 2024 are more than $1,000.
Request to cancel or waive penalties or interest
You can make a request to the CRA to cancel or waive penalties or interest if you are unable to meet your tax obligations due to circ*mstances beyond your control.
The CRA can only grant relief within 10 years ofyour request date.
For more information: Cancel or waive interest or penalties
