The Canada Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to all amounts owed to the CRA and all amounts owed by the CRA to individuals and corporations. These rates will be effective from July 1, 2026, to September 30, 2026.
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will remain at 7 per cent.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will remain at 3 per cent.
Employers who offer certain taxable benefits should:
- Calculate taxable benefits for low or no-interest employee loans using the current government prescribed interest rate;
- Monitor updates to prescribed interest rates regularly to ensure calculations remain accurate; and
- Adjust payroll processes promptly when rates change to stay compliant with tax requirements.