Calculate late filing penalties and prescribed interest charges on unpaid tax balances
★ Ex-KPMG Expertise★ 5-Star Google Reviews★ Patent-Pending AI Governance
Calculate Your CRA Charges
Estimated CRA Charges
Days Late:—
Late Filing Penalty:—
Prescribed Interest Charges:—
Total Amount Owing:—
⚠ Disclaimer: This tool provides estimates for informational purposes only and does not constitute professional accounting, tax, or financial advice. Results may not reflect your specific situation. Tax laws and regulations change frequently. Always consult a qualified CPA before making financial decisions. Insight Accounting CPA Professional Corporation accepts no liability for decisions made based on these estimates. For personalized advice, call (905) 270-1873.
Bader A. Chowdry, CPA, CA, LPA
$6.7M+ in tax matters resolved | 5-Star Google Reviews
Frequently Asked Questions
What is the CRA prescribed interest rate for 2026?
The CRA prescribed interest rate changes quarterly. As of Q1 2026, the rate is 10% (compounded daily). This rate applies to overdue taxes, insufficient tax instalments, and other amounts owed to the CRA. Mississauga taxpayers and businesses across Ontario should monitor CRA rate updates quarterly to calculate accurate interest charges on outstanding tax balances.
How does the CRA late filing penalty work?
The CRA late filing penalty is 5% of your balance owing, plus 1% for each full month your return is late, up to a maximum of 12 months. If you were charged a late filing penalty in any of the three previous tax years, the penalty doubles to 10% of the balance owing plus 2% per month (up to 20 months). Toronto and GTA taxpayers should file on time to avoid these substantial penalties.
Can I request CRA penalty and interest relief?
Yes. The CRA offers taxpayer relief provisions for penalties and interest if you can demonstrate extraordinary circumstances (serious illness, natural disaster, financial hardship, CRA error, etc.). Our Mississauga CPA team has successfully negotiated penalty relief for Ontario clients, saving tens of thousands in interest and late filing charges. Call (905) 270-1873 for a free consultation on your taxpayer relief request.
Does CRA interest compound daily or monthly?
CRA interest is compounded daily, which means you're charged interest on both the principal balance and previously accumulated interest every single day. This accelerates the growth of your tax debt significantly over time. Businesses and individuals in the GTA should prioritize paying down CRA balances quickly to minimize compounding interest charges.
What happens if I can't pay my CRA tax debt in full?
If you cannot pay your full CRA balance, contact them immediately to arrange a payment plan. While interest continues to accrue, you can avoid collections action by making regular payments. Our Mississauga accounting firm can negotiate payment arrangements with the CRA on behalf of Ontario clients, structure affordable payment plans, and explore options like taxpayer relief or settlement proposals. Don't ignore CRA debt—it doesn't go away and penalties compound quickly.
Facing CRA Penalties or Interest Charges?
Our Mississauga CPA team specializes in CRA debt resolution, taxpayer relief applications, and penalty negotiations.