{"id":593,"date":"2026-05-12T07:29:25","date_gmt":"2026-05-12T07:29:25","guid":{"rendered":"https:\/\/www.aoneoutsourcing.ca\/blog\/?p=593"},"modified":"2026-05-12T10:21:02","modified_gmt":"2026-05-12T10:21:02","slug":"cra-late-filing-penalty-interest-canada","status":"publish","type":"post","link":"https:\/\/www.aoneoutsourcing.ca\/blog\/cra-late-filing-penalty-interest-canada","title":{"rendered":"CRA Late Filing Penalties &amp; Interest in Canada (2026): Rates, Calculator &amp; Examples"},"content":{"rendered":"\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Nobody wants to miss a tax deadline, but life can get busy, things get forgotten, and before you know it, April 30th is gone. The Canada Revenue Agency (CRA) doesn&#8217;t give people free passes. The Canada Revenue Agency (CRA) doesn&#8217;t give people free passes, whether it be because they forgot, they were swamped with work, or they just left it alone. Miss the due date with a balance owing, and you will be faced with real dollars due being added to your bill daily until you clear up the debt.<br>Fortunately, you can put yourself in the driver&#8217;s seat by knowing the specifics of CRA late penalties. Knowing the rates, the formula, and what really causes charges will help you make better decisions, whether it involves filing immediately, making a partial payment, or requesting a reprieve. This guide provides all the information and explanations for 2026 in simple terms, using examples and a step-by-step calculation process that you can follow immediately.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What Is the CRA Late Filing Penalty?<\/h2>\n\n\n\n<p>The CRA late filing penalty is a financial penalty imposed by the <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency.html\" data-type=\"link\" data-id=\"https:\/\/www.canada.ca\/en\/revenue-agency.html\" target=\"_blank\" rel=\"noopener\"><strong>Canada Revenue Agency<\/strong><\/a> for the late filing of your income tax return when you still have unpaid income taxes. This isn&#8217;t a flat rate, but it&#8217;s based on your unpaid balance. The longer you wait and the more you owe, the greater the number will increase.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">When Does the Penalty Apply?<\/h3>\n\n\n\n<p>The late filing penalty is imposed when all three of the following are met:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You file your return after the deadline (April 30 for most Canadians, June 15 if you or your spouse is self-employed, but any balance owing is due April 30)<\/li>\n\n\n\n<li>There is an outstanding tax debt; it&#8217;s due but not paid on your return.<\/li>\n\n\n\n<li>You haven&#8217;t paid that balance by the filing deadline.<\/li>\n<\/ul>\n\n\n\n<p>Miss one of the three? This penalty might not be enforced. For instance, if you are late but paid all your instalments or source deductions on time, you will not suffer the penalty. If you miss filing and the CRA owes you money, again, there is no penalty.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who Needs to Pay This Penalty?<\/h3>\n\n\n\n<p>The late filing penalties are imposed on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Individual taxpayers submitting a T1 personal income tax return<\/li>\n\n\n\n<li>Their own businesses and sole traders<\/li>\n\n\n\n<li>Note that the deadline is different for corporations with T2 returns (usually 6 months after the fiscal year-end; balance owing is due 2 or 3 months after the fiscal year-end, depending on the corporation)<\/li>\n\n\n\n<li>If there is an outstanding balance, estates and trusts will be included.<\/li>\n<\/ul>\n\n\n\n<p>As a small business owner, you might need to consider both personal and corporate T1S. Failure to pay either deadline will incur penalties for both returns. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What If You Don&#8217;t Owe Taxes?<\/h3>\n\n\n\n<p>There is no penalty for late filing if the tax return indicates that a refund will be issued or if the return is &#8220;zero&#8221; (shows no tax due). It is not a problem whether you file it one month late or two years late; it doesn&#8217;t matter. If you have nothing to pay, there is no basis for a penalty being issued by the CRA.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">CRA Late Filing Penalty Rates (2026)<\/h2>\n\n\n\n<p>The CRA has a different penalty system for those who file their taxes on time, compared to those who miss the deadline. One rate applies to first-time late filers. Repeat offenders (those who received a formal demand to file and have been penalised) are hit much harder.<\/p>\n\n\n\n<p>If you miss the filing deadline, you will pay the first-time late filing penalty.<\/p>\n\n\n\n<p>For those who have not been issued a CRA late penalty before, or the last one issued was more than 3 years ago,<\/p>\n\n\n\n<p><strong>Base penalty:<\/strong> 5% of your balance owing on the filing deadline. Plus: 1% of your balance owing for each full month you&#8217;re late, up to a maximum of 12 months<\/p>\n\n\n\n<p>Which means when you are paying for the first time, the max penalty is 17% of what you owe (5% + 12 months x 1%).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Repeat Late Filing Penalty (Within 3 Years)<\/h3>\n\n\n\n<p>If the CRA has issued a formal demand to file in any of the three previous years and has imposed a late filing penalty, the penalties are doubled:<\/p>\n\n\n\n<p><strong>Base penalty:<\/strong> 10% of the amount of balance owing when you file (up to 20 months). Plus: 2% of the amount of balance owing for every month you are late after the filing deadline (up to a maximum of 20 months).\u00a0<\/p>\n\n\n\n<p>The longest term of repeat is a mind-boggling 50% of your debt balance (10% base rate + 20 months x 2%). This is half your tax bill, plus penalties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">CRA Penalty Rates Comparison Table<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Filing Scenario<\/strong><\/td><td><strong>Base Penalty<\/strong><\/td><td><strong>Monthly Add-On<\/strong><\/td><td><strong>Max Months<\/strong><\/td><td><strong>Max Total Penalty<\/strong><\/td><\/tr><tr><td>First-Time Late Filer<\/td><td>5% of the balance owing<\/td><td>1% per month<\/td><td>12 months<\/td><td>17% of the balance owing<\/td><\/tr><tr><td>Repeat Late Filer (within 3 years)<\/td><td>10% of the balance owing<\/td><td>2% per month<\/td><td>20 months<\/td><td>50% of the balance owing<\/td><\/tr><tr><td>No Balance Owing \/ Refund<\/td><td>None<\/td><td>None<\/td><td>N\/A<\/td><td>$0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">CRA Penalty Calculator \u2014 Estimate Your Cost<\/h2>\n\n\n\n<p>The CRA doesn&#8217;t have a separate online calculator for late-filing penalties, but you can work them out yourself in less than 2 minutes using the method below.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-by-Step Calculation Method<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Find your balance owing<\/strong> \u2014 the amount shown as payable on your tax return or most recent notice of assessment.<\/li>\n\n\n\n<li><strong>Count all full months late<\/strong>, from filing deadline through the date the filing is made (only whole calendar months count)<\/li>\n\n\n\n<li><strong>Determine your filing history <\/strong>\u2014 first-time or repeat offender within 3 years.<\/li>\n\n\n\n<li><strong>Apply the base rate \u2013 multiply<\/strong> the balance by 5% (first time) or 10% (repeat)<\/li>\n\n\n\n<li><strong>Apply the monthly rate \u2013 (<\/strong>first month = 1%, repeat = 2%, for each month late) \u2013 multiply balance by 1% (or 2%) and multiply by the number of months late.<\/li>\n\n\n\n<li><strong>Add both amounts:<\/strong> base penalty + monthly penalty = your total late filing penalty.<\/li>\n\n\n\n<li><strong>Add interest separately<\/strong>: Interest is also added to the unpaid balance from the day after the deadline (daily compound interest).<\/li>\n<\/ul>\n\n\n\n<p>To get a more exact number to take into account your individual situation, consult a <a href=\"https:\/\/www.aoneoutsourcing.ca\/service\/tax-return-services-canada\"><strong>Canadian tax professional<\/strong><\/a>. You can trust our team at Aone Outsourcing to work out your true exposure and help you determine the best course of action.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CRA Interest on Late Payments<\/h3>\n\n\n\n<p>Penalties and interest are two completely separate charges. Many Canadians think that they are the same, but they&#8217;re not. They both accrue on an unpaid balance, and knowing the difference is important if you need to work out your total cost.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">How CRA Interest Works<\/h4>\n\n\n\n<p>The CRA charges compound daily interest on any unpaid tax balance after the payment deadline. The interest rate is as prescribed by the CRA every quarter, plus 4%. This has been around 9% per year for overdue individual income taxes for the past couple of quarters, although you should refer to the updated prescribed interest rates page on <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/prescribed-interest-rates.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>CRA&#8217;s current prescribed interest rates<\/strong><\/a>.<\/p>\n\n\n\n<p>When compounding daily, each day the interest is computed from the previous day&#8217;s total (including previously added interest). It doesn&#8217;t happen very significantly in the first few weeks, but it does make a noteworthy difference over a long time period on a big balance.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">When Interest Applies<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>On unpaid tax balances: <\/strong>Interest begins on the day after your filing deadline (May 1 for most taxpayers)<\/li>\n\n\n\n<li><strong>On the penalties themselves:<\/strong> Yes, the CRA is also adding interest to the amount of the penalties you owe, which adds to your penalty balance.<\/li>\n\n\n\n<li><strong>On missed instalments: <\/strong>If you are supposed to pay quarterly tax instalments and don&#8217;t, instalment interest applies separately.<\/li>\n\n\n\n<li><strong>On reassessments:<\/strong> When the CRA reassesses your return, and it results in a higher amount due, interest charges begin at the original due date, not the reassessment date.<\/li>\n<\/ul>\n\n\n\n<p>Pro tip: If you are not able to pay the full amount by the due date, pay as much as you can. If you owe any money, the interest will accrue daily on what remains unpaid\u2014that is, what is not repaid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Penalty vs. Interest \u2014 What is the key difference?<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><strong>Late Filing Penalty<\/strong><\/td><td><strong>CRA Interest<\/strong><\/td><\/tr><tr><td>What triggers it?<\/td><td>Filing your return after the deadline with a balance owing<\/td><td>Not paying your full balance by the payment deadline<\/td><\/tr><tr><td>When does it start?<\/td><td>The moment you file late (calculated from the deadline)<\/td><td>The day after the payment deadline (May 1 for most)<\/td><\/tr><tr><td>How is it calculated?<\/td><td>Percentage of balance \u2014 applied once at filing<\/td><td>Daily compounding on the unpaid balance<\/td><\/tr><tr><td>2026 rate<\/td><td>5\u201310% base + 1\u20132% per month<\/td><td>~9% per year, compounded daily<\/td><\/tr><tr><td>Can you avoid it entirely?<\/td><td>Yes \u2014 file on time, even without paying<\/td><td>Yes \u2014 pay the full balance by the deadline<\/td><\/tr><tr><td>Does it compound?<\/td><td>No \u2014 calculated once<\/td><td>Yes \u2014 every single day<\/td><\/tr><tr><td>Can CRA waive it?<\/td><td>Yes \u2014 Taxpayer Relief Program<\/td><td>Yes \u2014 Taxpayer Relief Program<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The key takeaway: Penalties for late payments are avoided if the filing is made on time, regardless of whether payment is made. If you pay on time, you don&#8217;t pay interest, even if you&#8217;re late. If you can, do both, but if you can&#8217;t, file first!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Factors That Affect Your CRA Penalty<\/h2>\n\n\n\n<p>Late filing isn&#8217;t the same for everyone. There are a number of factors that will affect the overall penalty you will face:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Your balance owing: <\/strong>The number of variables is the number of balances you owe. The penalty is a straight percentage; a $500 balance will incur a $25 base penalty, and a $50,000 balance will incur a $2,500 base penalty. The more you earn, the more you have in business revenue or fail to pay out on taxes during the year, the more you have in your balance, and the more tax penalty exposure you&#8217;ve got as well.<\/li>\n\n\n\n<li><strong>Late every month (calendar month) &#8211;<\/strong> 1% (2% for repeat offenders). Late filing fees are more expensive than late fees after 30 days. When late, file as early as you can. Be sure it doesn&#8217;t keep going through the summer or fall \u2014 the monthly add-on continues until you file or reach the cap.<\/li>\n\n\n\n<li><strong>3. Is this the first time or a repeat? <\/strong>First-time and repeat rates differ significantly. A first-time filer is charged $2,200 in penalties for a $20,000 balance when it is 6 months late. A repeat filer pays $4,400. The rate they use depends directly on your CRA filing history.<\/li>\n\n\n\n<li><strong>Whether you received a formal demand to file:<\/strong> The higher repeat penalty only applies if a CRA has made a formal demand to file an S150(2) demand, in addition to being penalised within the last 3 years. The standard rate will still be charged if you delay but do not issue a demand. If you&#8217;ve been late before, the standard rate will still apply if you delay but do not issue a demand.<\/li>\n\n\n\n<li><strong>5. Type of income you earn \u2013 If<\/strong> you&#8217;re self-employed, are paid commission or have substantial capital gains, you are likely to have larger balances owing, as there is less tax withheld from that income. This increases the exposure to penalties compared to a salaried employee, where the majority of tax is remitted through payroll.\u00a0<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">How to Avoid CRA Late Filing Penalties<\/h3>\n\n\n\n<p>The best approach to late filing penalties is to avoid them altogether. This may seem like a no-brainer, but it&#8217;s important to understand how avoidance works. The best approach to late filing penalties is to avoid them altogether. This may seem like a no-brainer, but it&#8217;s important to understand how avoidance works.<strong>\u00a0<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Best Practices<\/h4>\n\n\n\n<p><strong>Set your filing deadline in your calendar right now.<\/strong> April 30 is the deadline for most Canadians; that date is the deadline. June 15 is the self-employment deadline, but the balance is still due April 30. Schedule both dates in your calendar at the beginning of each year and set a reminder for yourself 3 weeks before.&nbsp;<\/p>\n\n\n\n<p><strong>Gather your documents early:<\/strong> Most people put it off; they are waiting for an RRSP receipt, a T3 or a T4. Don&#8217;t wait until February to ask for these from your employer or institution. By law, most slips are issued on the last day of February.&nbsp;<\/p>\n\n\n\n<p><strong>Use a tax professional or outsourced accounting service:<\/strong> if you have more than one income source, business income, investments or rental property, a tax professional or <a href=\"https:\/\/www.aoneoutsourcing.ca\/\" data-type=\"link\" data-id=\"https:\/\/www.aoneoutsourcing.ca\/\"><strong>outsourced accounting service<\/strong><\/a> can make sure that nothing is overlooked or that your return is filed on time. The price of pro help is nearly always less than the price of incorrect help. Discover the services Aone Outsourcing has to offer Canadian businesses and individuals with regard to tax filing.\u00a0<\/p>\n\n\n\n<p><strong>File on time, even if you can&#8217;t pay.<\/strong> This one is the most important! The late filing penalty is based on the act of filing late, not the act of paying late. Even if you can&#8217;t pay the balance due by April 30, you will incur interest on the unpaid amount, but without any late filing penalty. Fill in a return for the amount of your liability, and then calculate payment on top of that.&nbsp;<\/p>\n\n\n\n<p><strong>Make instalment payments throughout the year:<\/strong> if you have a balance owing of more than $3,000 at tax time (or $1,800 in Quebec), the CRA will want tax instalment payments made quarterly during the year. If you make these on time, then you will have a lower balance owing at the time of filing, therefore lowering your penalty exposure if you do file late.&nbsp;<\/p>\n\n\n\n<p><strong>Know your filing obligations<\/strong>: If you have a corporation, a trust, rental income or foreign assets worth more than $100,000, the filing process is more complicated than a T1. Make sure you don&#8217;t miss a CRA tax filing deadline you didn&#8217;t realise you had by reading this guide on <a href=\"https:\/\/www.aoneoutsourcing.ca\/blog\/canada-2025-tax-filing-deadline-what-you-need-to-know-cra-relief-measures\" data-type=\"post\" data-id=\"38\"><strong>CRA tax deadlines in Canada<\/strong><\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reduce Your CRA Penalties with Expert Help<\/h2>\n\n\n\n<p>It is never too late to take steps to minimise the damage if you have already filed late or if you know you will be.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The CRA Taxpayer Relief Program<\/h3>\n\n\n\n<p>The CRA&#8217;s Taxpayer Relief Program (also known as the Voluntary Disclosure Program in some cases) can eliminate or forgive penalties and interest where there is a valid reason for noncompliance. This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A serious illness or medical emergency.<\/li>\n\n\n\n<li>A natural disaster or something out of your control.<\/li>\n\n\n\n<li>A financial hardship (in some instances)<\/li>\n\n\n\n<li>Any issues that arose due to CRA error or delay that has led to your situation.<\/li>\n\n\n\n<li>Death of an immediate family member close to the filing deadline\u00a0<\/li>\n<\/ul>\n\n\n\n<p>This is not a loophole or free pass but an individualised assessment of applications and requires documentation. However, there is relief if you have genuine circumstances that prevent you from filing on time. The application can be submitted on CRA Form RC4288. If you feel you may be eligible to receive a strong relief application, our staff can assist you. Check out our walkthrough on the Taxpayer Relief Program.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">File Late Voluntarily. Before the CRA Contacts You<\/h3>\n\n\n\n<p>If you have not filed any of the previous years and the CRA has not yet reached out to you, you may be able to completely avoid penalties for the unfiled years by doing so under the Voluntary Disclosure Program (VDP). The programme is meant to get people back in compliance, and it&#8217;s much better to do this voluntarily than for the CRA to knock on your door.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Does Aone Outsourcing Help?<\/h2>\n\n\n\n<p>We have a team of professionals at <a href=\"https:\/\/www.aoneoutsourcing.ca\/\" data-type=\"link\" data-id=\"https:\/\/www.aoneoutsourcing.ca\/\"><strong>Aone Outsourcing Solutions<\/strong><\/a> that can help you with tax filing, backing up your taxes or answering any correspondence from the CRA in all Canadian provinces for individuals, small business owners, and incorporated companies. Our services include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Personal <a href=\"https:\/\/www.aoneoutsourcing.ca\/blog\/what-is-a-t1-tax-return\" data-type=\"link\" data-id=\"https:\/\/www.aoneoutsourcing.ca\/blog\/what-is-a-t1-tax-return\"><strong>T1 tax return preparation<\/strong><\/a> and filing<\/li>\n\n\n\n<li>Preparation of personal or <a href=\"https:\/\/www.aoneoutsourcing.ca\/blog\/t2-corporate-tax-return\" data-type=\"link\" data-id=\"https:\/\/www.aoneoutsourcing.ca\/blog\/t2-corporate-tax-return\"><strong>corporate T2 tax returns<\/strong><\/a>.<\/li>\n\n\n\n<li>Review and analysis of CRA penalty and interest.<\/li>\n\n\n\n<li>Applications for the Taxpayer Relief Program are coming in soon.<\/li>\n\n\n\n<li>Voluntary Disclosure Program support<\/li>\n\n\n\n<li>Regular <a href=\"https:\/\/www.aoneoutsourcing.ca\/service\/bookkeeping-services-canada\" data-type=\"link\" data-id=\"https:\/\/www.aoneoutsourcing.ca\/service\/bookkeeping-services-canada\"><strong>bookkeeping services<\/strong><\/a> to keep you tax time ready<\/li>\n<\/ul>\n\n\n\n<p>We&#8217;re not a seasonal agency \u2014 we work with clients all year long and can identify problems before they turn into penalties.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Do Businesses Choose Outsourcing?<\/h2>\n\n\n\n<p>Many business owners and self-employed Canadians procrastinate on filing because they do not have time to get it done, in addition to all the other things they have to do. By having a dedicated accounting team handling your tax filing, you don&#8217;t have to worry about deadlines. You worry about running your business, and we take care of the CRA. For most clients, the expense of outsourcing is a small fraction of a single year&#8217;s late-filing fines.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Q1: How Is the CRA Late Filing Penalty Calculated?<\/h3>\n\n\n\n<p>The penalty amount is based on the amount you owe. It is 5 per cent of the outstanding balance due and 1 per cent per full month of being late (up to 12 months) for first-time late filers. It is 10% plus 2% for each complete month late (up to 20 months) for repeat offenders within 3 years. A daily compounding of interest on the unpaid balance.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Q2: Does the CRA Charge Interest on Late Taxes?<\/h3>\n\n\n\n<p>Yes. The CRA compounds daily interest on unpaid balances beginning the day after the payment due (usually May 1 for individual taxpayers). The interest rate is based on the CRA&#8217;s quarterly prescribed rate plus 4%, currently around 9% per year. The CRA also imposes penalties for late payments, and they are interest on the unpaid balance.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Q3: What Is the Maximum CRA Late Filing Penalty?<\/h3>\n\n\n\n<p>The penalty is 17% of the balance owing for first-time late filers (5% base + 12 months \u00d7 1%). Repeat offenders who have been penalised within the past 3 years and have been formally asked to pay a balance due (with a base of 10% and a duration of 20 months) will face a maximum penalty of 50% (10% base + 20 months \u00d7 2%).&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Q4: Can the CRA Waive Late Filing Penalties?<\/h3>\n\n\n\n<p>Yes. The CRA offers the Taxpayer Relief Program to cancel or waive penalties and interest if you can prove that you did not file the tax return because of a serious illness, natural disaster, or other financial hardship. Applications are assessed individually, and documents are required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Q5: What Should I Do If I Missed the Tax Filing Deadline in Canada?<\/h3>\n\n\n\n<p>File your return as soon as possible. The monthly penalty increases with the number of full months you wait. Of course, if you can&#8217;t pay the full amount, file anyway; the late filing penalty occurs on late filing, not late payment. Suppose you can pay more, as much as you can, to cut down on interest on the balance. If you have not filed for several years, you may want to take advantage of the CRA&#8217;s Voluntary Disclosure Program before the CRA contacts you first.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Q6: Does CRA Charge Interest Daily?<\/h3>\n\n\n\n<p>Yes. CRA penalties for late taxes are compounded daily. This means that interest will accrue on the entire outstanding balance, whether or not interest has been added during the day. It&#8217;s not 9% at the end of the year \u2013 it&#8217;s 9% on an annual basis, worked out and added each day.<em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nobody wants to miss a tax deadline, but life can get busy, things get forgotten, and before you know it, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[10],"tags":[],"class_list":["post-593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-return"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/posts\/593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/comments?post=593"}],"version-history":[{"count":2,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/posts\/593\/revisions"}],"predecessor-version":[{"id":597,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/posts\/593\/revisions\/597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/media\/594"}],"wp:attachment":[{"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/media?parent=593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/categories?post=593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aoneoutsourcing.ca\/blog\/wp-json\/wp\/v2\/tags?post=593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}