You will be charged interest on any taxes that you owe if you pay late. You will also be charged a late-filing penalty if you have a balance owing and file your tax return late.

Interest on taxes you owe

If you have a balance owing for 2022 and are unable to pay it by the April 30 payment due date, the CRA will start charging you compound daily interest as of May 1, 2023. This includes any balance owing if your return has been reassessed.

  • If April 30 is a Saturday or Sunday

    When the due date falls on a Saturday, Sunday, or a public holiday, your payment is due by the first business day after April 30. Interest on your balance owing begins to accrue on the second business day.

The interest rate that the CRA will charge on current or previous balances can change every 3 months based on prescribed interest rates.

Tax instalment interest

If the CRA 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 return late

If you file your tax return after the due date and have a balance owing, you will be charged a late-filing penalty. Filing late may also cause delays to your benefit and credit payments.

If you cannot pay your balance owing, you should still file on time to avoid being charged the late-filing penalty.

The late-filing penalty is 5% of your 2022 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months.

If the CRA charged a late-filing penalty for 2019, 2020 or 2021 and requested a formal demand for a return, your late-filing penalty for 2022 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 20 months.

The late-filing penalty still applies when you get interest relief if you received COVID-19 benefits.

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 2023 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 circumstances beyond your control.

The CRA can only grant relief within 10 years of your request date.

For details: Cancel or waive penalties or interest

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