What are the current Canada Revenue Agency prescribed interest rates for Q2 2026?

For the second calendar quarter of 2026 (April 1 to June 30), the interest rate for overdue taxes, CPP contributions, and EI premiums is 7%. Conversely, the interest rate paid on overpayments and corporate refunds is 3%.

What are the specific implications of the CRA prescribed interest rates for individuals in Canada?

The CRA prescribed interest rates directly impact individuals through interest charged on overdue taxes, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. Conversely, individuals also earn interest on tax overpayments and refunds, though typically at a lower rate.

How do CRA prescribed interest rates specifically affect businesses?

CRA prescribed interest rates directly influence businesses by determining the cost of carrying tax debt and the interest earned on corporate tax refunds. Staying informed about these rates is crucial for effective cash flow management, helping businesses avoid penalties and maximize returns on overpaid taxes.

How frequently does the Canada Revenue Agency (CRA) adjust its prescribed interest rates?

The Canada Revenue Agency (CRA) adjusts its prescribed interest rates quarterly. These adjustments are based on a formula linked to the average of three-month Treasury Bills, which can cause the rates to fluctuate each quarter.

Cra Prescribed Interest Rates: Q2 2026 Update

Stay updated on CRA prescribed interest rates for Q2 2026. Understand how these rates impact amounts owed to and by the CRA for individuals and corporations.

The Canada Revenue Agency (CRA) has announced prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts owed by the CRA to both individuals and corporations. These rates will be in effect from April 1 to June 30, 2026.

Canadian Income Tax Interest Rates Q2 2026

The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 7%.
The interest rate to be paid on corporate taxpayer overpayments will be 3%.
The interest rate to be paid on non-corporate taxpayer overpayments will be 5%.
The interest rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans will be 3%.
The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 6.2%.

You can find the interest rate for any previous quarter here.

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