The Canada Revenue Agency announced the prescribed annual interest rates for the first calendar quarter of 2026.
The rates apply from January 1 to March 31, 2026, to amounts owed to the CRA and to amounts the CRA owes to individuals and corporations.
For income tax, the interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums is 7%.
The rate paid on corporate taxpayer overpayments is 3%, while the rate paid on non-corporate taxpayer overpayments is 5%.
The rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 3%. The rate for corporate taxpayers' pertinent loans or indebtedness is 6.36%.
For GST, HST, the air travellers security charge, fuel charge, non-GST/HST excise tax, and several other remittance categories, CRA listed a 7% overdue remittance rate, a 3% corporate overpayment rate, and a 5% non-corporate overpayment rate.
Prescribed rates matter because they turn timing into a tax cost. Late balances, shareholder loans, employee loans, instalments, payroll remittances, and GST/HST remittances can all be affected by the quarterly rate table.