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CRA Late Filing Penalty & Interest Calculator

Enter what you owe and when you filed and paid. See the CRA late-filing penalty, including the repeat-filer penalty, and the daily-compounded interest at the published rates.

In short: How much is the CRA late-filing penalty?

5% of your balance owing plus 1% of the balance for each full month the return is late, up to 12 months — a maximum of 17%.

Last reviewed against 2 official sources.

Try an example:

Your return

Penalty + interest

$1,061.93

on top of $8,000.00 owing

Late-filing penalty10% · 5 full months late
$800.00
Arrears interestcompounded daily
$261.93

What makes up the total

The penalty and interest add $1,061.93 to $8,000.00.

Penalty and interest if you pay later

Paying 12 months later adds about $599.00 in interest.

The link holds your numbers in the address. Nothing is sent to us.

How it's calculated

  1. Penalty: 5% of the balance owing, plus 1% for each full month late (maximum 12). Repeat filers: 10% plus 2% per month (maximum 20).
  2. Interest: charged daily, compounding, from the day after the due date until paid, at the CRA's quarterly rate.

Worked example

Lee owes C$8,000 on a return due 30 April 2026 and files and pays on 15 October 2026, 5 full months late. Penalty: 5% + 5% = C$800. Interest at 7% compounded daily for 168 days: about C$262.

Limits

  • Interest is shown on the unpaid tax; the CRA also charges interest on the penalty once it's assessed.
  • Instalment interest and penalties aren't included.

Reading the charts

Each chart redraws as you change the inputs and uses the same calculation as the result above. Choose "Show data" for the exact figures as a table, or download them as a CSV. "Copy link" saves your numbers in the page address so you can come back to the result or share it; nothing is sent to us.

Official sources

Figures last reviewed .

Frequently asked questions

How much is the CRA late-filing penalty?

5% of your balance owing plus 1% of the balance for each full month the return is late, up to 12 months — a maximum of 17%.

What is the repeat late-filing penalty?

If you were charged a late-filing penalty in any of the three previous years and the CRA issued a demand to file, the penalty is 10% plus 2% for each full month late, up to 20 months — up to 50%.

What interest does the CRA charge?

Compound daily interest from the day after the due date on any unpaid amount. The rate on overdue taxes is set quarterly; it has been 7% since July 2025.

Is there a penalty if I don't owe anything?

No late-filing penalty is charged if you have no balance owing, but filing late can delay benefit and credit payments.

Should I file even if I can't pay?

Yes. Filing on time avoids the late-filing penalty entirely, even if you need to arrange payments.

Can the penalty be cancelled?

You can ask the CRA to cancel or waive penalties or interest if circumstances beyond your control stopped you filing or paying, within 10 years. Use our taxpayer relief navigator.

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CRA Taxpayer ReliefSee whether a request to cancel CRA penalties or interest (Form RC4288) could succeed.Consumer Proposal EvaluatorCompare a consumer proposal with bankruptcy for tax and other debts in Canada.CRA Collections RiskSee where you are in the CRA collections process and how close garnishment or a bank freeze may be.
Disclaimer: This tool gives a general estimate based on what you enter and the published rules. It is not tax, legal or financial advice, and the tax authority makes the final decision. Speak to a qualified professional before acting. See our disclaimer.