CRA prescribed interest rates

CRA prescribed interest rates to remain steady for Quarter 3 of 2023.

Since 2020 the CRA’s prescribed interest rates have been steadily climbing upwards, but on Monday, the CRA announced a pause on this trend.

In the third quarter of 2023 (July 1 – September 30, 2023), the prescribed income tax interest rate for taxable benefits for employees and shareholders and prescribed rate loans, overpaid taxes, and underpaid taxes will remain unchanged from the second quarter.

2023

Taxable Benefits/Prescribed Rate Loans

• July 1 – September 30

  • 5%

• April 1- June 30

  • 5%

• January 1 – March 31

  • 4%

Overpaid Taxes Corporations

• July 1 – September 30

  • 5%

• April 1- June 30

  • 5%

• January 1 – March 31

  • 4%

Overpaid Taxes Individuals

• July 1 – September 30

  • 7%

• April 1- June 30

  • 7%

• January 1 – March 31

  • 6%

Underpaid Taxes

• July 1 – September 30

  • 9%

• April 1- June 30

  • 9%

• January 1 – March 31

  • 8%

Access to the full list of the CRA’s prescribed interest rates can be found here. Interest rates for the third calendar quarter - Canada.ca

While it is good news the rate has not increased, individuals or corporations with outstanding tax debts will find no relief in the servicing costs on unpaid debt with the CRA.  

Individuals who are required to make quarterly personal tax installments should keep the 9% interest rate in mind when deciding whether to meet the deadline or ignore it.

Contact a member of our team to discuss your personal or corporate financial situation.