The Canada Revenue Agency announced the prescribed annual interest rates for the fourth calendar quarter of 2025.
The rates apply from October 1 to December 31, 2025.
For income tax, overdue taxes, Canada Pension Plan contributions, and employment insurance premiums carry a 7 per cent interest rate.
Corporate taxpayer overpayments earn 3 per cent, while non-corporate taxpayer overpayments earn 5 per cent.
The rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 3 per cent.
The rate for corporate taxpayers' pertinent loans or indebtedness is 6.69 per cent.
CRA also listed 7 per cent overdue remittance rates, 3 per cent corporate overpayment rates, and 5 per cent non-corporate overpayment rates for GST, HST, the air travellers security charge, fuel charge, non-GST/HST excise tax, Underused Housing Tax, Luxury Tax, and several other charges.
Prescribed rates matter because they affect late balances, remittances, shareholder and employee loans, taxable benefits, and the interest CRA pays or charges for the quarter.