The CRA may charge penalties if:
- You file your 2025 return late and owe tax
- You fail to report income on your 2025 return and also missed reporting income in 2022, 2023, or 2024
- You make a false statement or omit information on your 2025 return, either knowingly or through gross negligence
If the CRA issued a demand to file and charged a late-filing penalty for 2022, 2023, or 2024, your penalty for 2025 may be higher.
Interest on your balance owing
If you owe taxes for 2025, the CRA charges compound daily interest starting the day after the due date. This applies to any unpaid amount, including amounts from reassessments.
If April 30 is a weekend or holiday
When a due date falls on a Saturday, Sunday or public holiday:
- Your return is considered on time if the CRA receives it, or it is postmarked, by the next business day
- Your payment is considered on time if it is received by the first business day after the due date
See Due dates and payments dates for details.
Interest rates
The CRA's interest rates can change every three months based on the prescribed interest rates.
Tax instalment interest
If you are required to pay tax instalments, you must pay by the instalment due dates.
Missing a payment due date may result in instalment interest.
Penalty for filing your return late
If you file after the due date and owe tax, you will be charged a late-filing penalty. Filing late can also delay your benefit and credit payments.
File on time even if you cannot pay
If you cannot pay your balance owing by the return due date, file on time to avoid being charged a late-filing penalty.
Penalty amounts
Late-filing penalty
- 5% of your 2025 balance owing, plus
- 1% of your 2025 balance owing for each full month late (up to 12 months)
Repeated late filing penalty
- 10% of your 2025 balance owing, plus
- 2% of your 2025 balance owing for each full month late (up to 20 months) if you were penalized in 2022, 2023, or 2024 and received a demand to file
Note: The late-filing penalty still applies even if you received COVID-19-related interest relief on 2020 taxes. Archived
Tax instalment penalty
You may pay a penalty if your instalments are late or less than required. The CRA applies the instalment penalty only if instalment interest for 2026 is more than $1,000.
Request to cancel or waive penalties or interest
You can ask the CRA to cancel or waive penalties or interest if circumstances beyond your control prevented you from meeting your tax obligations.
Requests must be submitted within a 10-year period ending in the calendar year the request is made.