The Canada Revenue Agency announced prescribed annual interest rates for the second calendar quarter of 2026.
The rates apply from April 1, 2026 to June 30, 2026. They affect amounts owed to CRA and amounts CRA owes to individuals and corporations.
For income tax, overdue taxes, Canada Pension Plan contributions, and employment insurance premiums are charged interest at 7 per cent.
Corporate taxpayer overpayments earn 3 per cent, while non-corporate taxpayer overpayments earn 5 per cent.
For GST/HST and several other taxes, duties, and charges, CRA listed the same 7 per cent rate for overdue remittances, 3 per cent for corporate overpaid remittances, and 5 per cent for non-corporate overpaid remittances.
The prescribed rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 3 per cent.
CRA also listed a 6.20 per cent rate for corporate taxpayers' pertinent loans or indebtedness.
These rates matter because interest can accumulate on unpaid balances even when the underlying tax amount is unchanged. They also affect taxable-benefit calculations where an employee or shareholder receives a low-interest loan.