Free CRA Interest & Penalty Calculator — No Sign-Up Required

Use our free CRA interest and penalty calculator to instantly estimate how much you owe in late-filing penalties and compound daily interest on unpaid taxes. No sign-up required — enter your balance owing and filing dates to get accurate results in seconds. This calculator uses CRA prescribed interest rates from 2019 through 2026.

How Does CRA Interest Work?

The Canada Revenue Agency charges compound daily interest on unpaid tax balances starting the day after your payment deadline. The interest rate changes quarterly based on the CRA prescribed rate, which is the Bank of Canada rate plus 4%. Our free calculator automatically applies the correct rate for each quarter — no sign-up, no email required.

What Penalties Does CRA Charge for Late Filing?

If you file your tax return late and owe taxes, CRA charges a late-filing penalty of 5% of your balance owing, plus 1% for each full month your return is late (up to 12 months). For repeat offenders, the penalty doubles to 10% plus 2% per month. Use our free calculator below to see exactly how much penalties and interest will cost you.

Frequently Asked Questions About CRA Interest & Penalties

When does CRA start charging interest on unpaid taxes?

CRA begins charging compound daily interest on the day after your tax payment is due. For most individuals, the deadline is April 30. If you owe taxes and miss this deadline, interest accumulates every single day until you pay in full.

What is the current CRA prescribed interest rate?

CRA prescribed interest rates change quarterly. As of Q1 2026, the rate for overdue taxes is 8%. This rate is based on the Bank of Canada rate plus 4 percentage points. Our calculator automatically uses the correct rate for each quarter.

Can I avoid CRA late-filing penalties?

Yes — file your tax return on time, even if you cannot pay the full amount owing. The late-filing penalty only applies when you both file late and owe taxes. If you file on time but cannot pay, you will only be charged interest, not the penalty.

Does CRA charge interest on penalties too?

Yes. CRA charges compound daily interest on both the unpaid tax balance and on any penalties assessed. This means the total amount owing can grow quickly if left unpaid.

How can I reduce CRA interest and penalties?

The best way to minimize charges is to file on time and pay as much as you can by the deadline. You can also apply for taxpayer relief if you have extraordinary circumstances. A tax professional can help you navigate your options.