Canada Revenue Agency announced the prescribed annual interest rates for the second calendar quarter of 2025.
The rates applied from April 1 to June 30, 2025, and governed interest charged on amounts owed to CRA and interest paid by CRA on certain overpayments.
For income tax, overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums carried an 8% rate.
CRA paid 4% on corporate taxpayer overpayments and 6% on non-corporate taxpayer overpayments.
The rate used to calculate taxable benefits for employee and shareholder interest-free or low-interest loans was 4%.
CRA also listed a 7.08% rate for corporate taxpayers' pertinent loans or indebtedness.
For GST, HST, the Air Travellers Security Charge, the fuel charge, most excise tax, the softwood lumber products export charge, the Underused Housing Tax, luxury tax, and digital services tax, overdue remittances carried an 8% rate. Overpaid remittances generally earned 4% for corporate taxpayers and 6% for non-corporate taxpayers, with exceptions depending on the charge.
The quarter matters because these rates set the cost of delay. Businesses managing payroll, GST/HST, excise, UHT, luxury tax, or digital-services-tax balances faced a materially higher cost on overdue amounts than the rate CRA paid on many overpayments.