Rates and deadlines
CRA Prescribed Interest Rates for October to December 2026
7%the rate the CRA charges on overdue tax from October 1, 2026 to December 31, 2026, compounded daily.
Sources checked October 20263 min read
The rates in force
The CRA sets these rates every quarter. The same overdue rate applies to unpaid income tax, CPP contributions, EI premiums and GST/HST, and interest on overdue amounts is compounded daily.
| Rate | Applies to | Rate for the quarter |
|---|---|---|
| Overdue taxes | Unpaid income tax, CPP, EI and GST/HST | 7% |
| Corporate overpayments | Interest the CRA pays a corporation | 3% |
| Non corporate overpayments | Interest the CRA pays individuals and trusts | 5% |
| Taxable benefits | Interest free and low interest loans to employees and shareholders | 3% |
| Pertinent loans | Pertinent loans or indebtedness of corporate taxpayers | 6.29% |
Key points
- 7% on overdue tax, CPP and EI
- 3% paid on corporate overpayments, 5% on individual ones
- 3% for the taxable benefit on low interest loans
- Rates are reset every three months
Why the gap matters
The CRA charges 7% and pays a corporation 3%. A business that owes in one year and is owed in another comes out behind on the difference, which is one reason instalments and balances due are worth getting right rather than settling up later.
Loans to shareholders and employees
A loan from a corporation to a shareholder or employee at less than 3% creates a taxable benefit equal to the interest they did not pay at that rate, less any interest they did pay. Shareholder loans also carry their own repayment rules, set out in the shareholder loans guide.
Quick answers
What interest rate does the CRA charge on overdue tax?
7% a year, compounded daily, from October 1, 2026 to December 31, 2026.
What is the prescribed rate for shareholder and employee loans?
3% for the same quarter.
How often do the rates change?
Every three months. The CRA announces each quarter's rates before the quarter begins.
Related pages
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.