CRA Tax Owing Interest Calculator
With the CRA interest calculator you’ll be able to quickly determine how much you owe, to better budget your finances to pay off these penalty fees.
Tax Penalty Calculator
The Total Penalty Is:
How the CRA interest calculator works?
By adding in the total principle amount that you owe to the CRA, along with your initial deadline and when you expect to file your taxes we can estimate your total penalty amount.
The CRA charges 5% in interest penalty if passed the deadline, and 1% per month after for a period of 12-months.
If you fail to file your taxes for a consecutive 3-years the penalty is 10% of the overdue tax, and 2% after each month up until 20-months.
What to do about your overdue fees?
If you have unfilled taxes, don’t risk waiting any longer to file them, as waiting any longer can lead to an increased amount of interest fees and eventually it could lead to a tax audit.
If you require help with filing your unfilled taxes, you can contact us.
To learn more visit the CRA’s Avoiding Penalties page.
Want us to reduce your CRA tax penalty for you?
Connect with us and lets see how we can support you when it comes to working with the CRA, reducing penalty fees and preparing your taxes.
We will work with the CRA on your behalf to reduce your tax interest penalties.
We will help ensure all your documents are prepared and organized for when submitting your tax returns.
We will provide you with future reminders to file before your deadline to avoid any future penalty fees.
Tax penalty questions you may have
How do weekends and holidays affect overdue calculations?
The CRA doesn’t count weekends and holidays. If you’re able to make payment on the next business day this means you’ve made payment on-time.
Who can I contact if I have questions about my CRA penalty?
You will have to contact the CRA directly for both personal and business overdue taxes: 1 (800) 959-8281
Does this calculator work for both personal and business taxes?
You can use the calculator for estimating your personal and business overdue taxes. The CRA charges interest penalties the same, however there might be exceptions to certain industries.
Are there any tax relief programs available for overdue payments?
The CRA is able to offer a relief program for individuals and businesses under specific circumstances such as negative financial situation, natural disaster, etc. The CRA may extend you more time or waive or reduce your penalty fees.
What happens if I can’t pay the penalty immediately?
If you are unable to pay off your penalty fees right away, you can contact the CRA to discuss payment plans. They may allow you to pay in installments or reduce your fee completely if you pay upfront.
What should I do after calculating my penalty?
Connect with us and lets see how we can support you when it comes to working with the CRA, reducing penalty fees and preparing your taxes.
What if my overdue period spans multiple years?
If you’re in a situation where your overdue in taxes over multiple years you will be subject to an increase in interest penalty fees. Our calculator above is only useful for a 12-month period, if you’ve longer than this then you will need to work with an accountant to calculate your total amount.
How do I know if I have unfiled tax returns?
The way you can find out if you have unfiled tax returns is by first logging into your CRA account. Below you can login to your account:
If you need help with this, feel free to connect with us.
Can I negotiate with the CRA on our behalf?
You can negotiate a payment plan with the CRA to help you pay off the total amount of fees, or if its your first time the CRA may help you minimize the total penalty.
If you need help a professional tax accountant to contact the CRA on behalf of you, feel free to connect with us.
How accurate is the tax penalty calculator?
Our calculator provides an accurate estimate based on the latest CRA penalty formulas. However, for official amounts, always refer to your CRA account or contact the CRA directly.
Can I file all of my tax returns at once?
You can file all of your returns at once, and it is suggested you do so to avoid any further penalties, and to begin making payments towards any penalties you might have accrued.
Can the CRA waive the penalty fee?
Connect with the CRA or have an accounting representative support you and you may be able to have your penalty waived if justified.
“Need help with paying your overdue taxes? We’ll file it for you, and contact the CRA to help minimize your fees.”
– Danny Khanna, Managing Director