The Canada Revenue Agency announced the prescribed annual interest rates for the third calendar quarter of 2026.
The rates apply from July 1 to September 30, 2026. They determine 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 carry a 7% interest rate. CRA pays 3% on corporate taxpayer overpayments and 5% on non-corporate taxpayer overpayments.
The prescribed rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 3%. CRA also listed a 6.30% rate for corporate taxpayers' pertinent loans or indebtedness.
For GST, HST, the air travellers security charge, fuel charge, non-GST/HST excise tax, softwood lumber export charges, the Underused Housing Tax, luxury tax, digital sales tax, and global minimum tax, CRA listed a 7% rate on overdue remittances.
For most of those remittances, CRA listed 3% on corporate overpaid remittances and 5% on non-corporate overpaid remittances. Digital sales tax and global minimum tax overpaid remittances show 3% for corporate taxpayers and no listed non-corporate overpayment rate.
The practical point is that timing still carries a tax cost. Late balances, remittances, shareholder and employee loans, taxable benefits, and the interest CRA pays or charges all depend on the quarterly prescribed-rate table.