The CRA may charge a penalty if any of the following applies:
- You filed your return late and owe tax for 2024
- You failed to report an amount on your 2024 return and also failed to report an amount on your return for 2021, 2022 or 2023
- You knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission on your 2024 return
The late filing penalty may be higher if the CRA issued a demand to file the return and assessed a late filing penalty on a return for tax year 2021, 2022 or 2023.
Interest on your balance owing
If you have a balance owing for 2024, the CRA will charge you compound daily interest on any unpaid amount owing for 2024 starting the day after the balance is due. This includes any balance owing if the CRA reassesses your return.
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If April 30 is on a Saturday, Sunday or public holiday
When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day. Your payment is considered on time if it is received by the first business day after the due date. For more information, see Due dates and payments dates.
The interest rate that the CRA charges on current or previous balances owing can change every three months based on prescribed interest rates.
Tax instalment interest
If the CRA requires you to pay tax instalments, you must 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 2024 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 you a late-filing penalty for 2021, 2022 or 2023 and requested a formal demand for a return, your late-filing penalty for 2024 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 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 2025 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 more information: Cancel or waive interest or penalties
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