2023 TurboTax® Canada Tips

Tax Tip: How Much Interest Does the CRA Charge on Tax Instalment Payments?

TurboTax Canada
December 4, 2019 | 1 Min Read

The Canada Revenue Agency (CRA) charges interest on instalment payments if you send your payment late, or if the payment is less than the required amount and you receive a reminder notice that it hasn’t been paid.

The interest on these payments is compounded daily using the prescribed interest rate that is set every three months.

Key Concepts

  • late tax payments
  • interest instalment rate
  • notice reminder pay