# CRA balance owing: when it is due, how to pay and what interest costs

Source: https://canadataxdesk.com/after-you-file/cra-balance-owing
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: After You File
Last updated: 2026-09-18

> A CRA balance owing is tax you still owe after your return is assessed. For 2026 returns it is due April 30, 2027, even for self-employed people who file by June 15. Pay through online banking, My Payment, pre-authorized debit or other CRA-listed methods. Unpaid amounts collect daily compound interest, 7% a year for October to December 2026.

## Key facts

- Due date for 2026 tax: April 30, 2027
- Interest starts: The day after the balance is due
- Rate on overdue tax, Oct to Dec 2026: 7%, compounded daily
- Small differences: Generally not charged if $2 or less
- Self-serve payment plan: Available for personal tax debt of $1,000 or more

## Why you have a CRA balance owing

A CRA balance owing appears on line 48500 of your return and on your notice of assessment when the tax withheld or paid during the year was less than the tax on your income. It is common, and usually has a simple cause.

- Two jobs at once, where each employer withheld as if it were your only income.
- Self-employment, rental or investment income with no tax taken off at source.
- An RRSP withdrawal where the withholding was lower than your marginal rate.
- Old Age Security or Employment Insurance amounts clawed back through line 23500.
- A reassessment after a review or a change request that reduced a claim.

Your notice of assessment is the authoritative figure. If it differs from what your software showed, the explanation section says why. Our [notice of assessment](https://canadataxdesk.com/after-you-file/notice-of-assessment) guide explains how to read it.

## CRA balance owing due date

For the 2026 tax year the balance is due Friday, April 30, 2027. That date applies to self-employed filers too: their filing deadline is June 15, 2027, but any balance is still due April 30. The CRA usually confirms these dates in its filing-season news release in February.

The due date does not move because your notice of assessment arrives later. If you file in April and the notice comes in May, interest still runs from May 1. Paying an estimate by April 30 and settling the difference later is the cheaper approach.

> **File on time even if you cannot pay:** The late-filing penalty is 5% of the balance owing plus 1% per full month late, up to 12 months. That penalty is usually far larger than the interest on a late payment. See [late filing penalty in Canada](https://canadataxdesk.com/filing/late-filing-penalty-canada) for worked numbers.

## CRA balance owing: how to pay

The CRA accepts payments through several channels. Leave a few days of margin before April 30: online banking payments count as paid the same or next business day depending on your bank, and mailed cheques take longer still.

| Method | How it works | Watch for |
| --- | --- | --- |
| Online banking | Add the CRA as a payee and enter your 9-digit SIN as the account number | Counts as paid the same or next business day; can take up to 3 business days to show in My Account |
| My Payment | Pay from the CRA website with a debit card | Debit only; credit cards are not accepted |
| Pre-authorized debit | Set up in My Account for one payment or a series | Must be scheduled at least 5 business days before the first withdrawal |
| Canada Post | Pay cash or debit at the counter | Needs a customized QR code first; service fees apply |
| Bank or credit union counter | Pay in person at any Canadian bank or credit union | Bring your remittance voucher if you have one |
| Cheque by mail | Cheque or postdated cheques in Canadian funds | Slowest; mail time counts against you |
| Third-party provider | Credit card through a provider such as PaySimply or Plastiq, or Interac e-Transfer through PaySimply | The provider charges a fee |

Ways to pay a personal balance owing

Once the payment posts, check your balance in My Account; allow up to 3 business days for a bank payment to appear. The balance should drop to zero or to the amount you still owe.

## CRA balance owing interest and how it adds up

The CRA charges interest compounded daily on any unpaid balance, starting the day after it was due and continuing until it is paid in full. The rate is the prescribed rate for overdue taxes, which the CRA resets every quarter. It was 7% for July to September 2026 and stays at 7% for October to December 2026.

| Paid after | Interest | Total to clear it |
| --- | --- | --- |
| 30 days | $17.31 | $3,017.31 |
| 90 days | $52.23 | $3,052.23 |
| 6 months (181 days) | $105.96 | $3,105.96 |
| 1 year | $217.50 | $3,217.50 |

Interest on a $3,000 balance at a steady 7% compounded daily (editorial calculation)

These figures assume the rate stays at 7% all year; each new quarter's rate applies from its start date. Interest also applies to unpaid penalties. Generally, the CRA does not charge a difference of $2 or less, so a tiny balance can be left alone.

## If you cannot pay your balance in full

Pay what you can by the due date. Every dollar paid stops collecting interest, and a smaller balance also shrinks any late-filing penalty if the return is late. Then deal with the rest before it goes to collections.

1. File your return on time, whatever you can pay.
2. Make a partial payment by April 30, 2027.
3. If you owe $1,000 or more in personal income tax, use Manage balance in My Account to schedule a series of payments. Our [CRA payment arrangement](https://canadataxdesk.com/after-you-file/cra-payment-arrangement) page covers the details.
4. If hardship or events beyond your control caused the problem, you can ask for interest or penalties to be cancelled with an [RC4288 taxpayer relief request](https://canadataxdesk.com/filing/rc4288-taxpayer-relief-request).

Leaving a balance unpaid has other effects. The CRA can keep future refunds and apply federal benefit and credit payments to what you owe. A large balance can also be a sign you should be paying by instalments.

### Will I have to pay instalments next year?

The CRA requires instalments when your net tax owing is more than $3,000 ($1,800 in Quebec) in the current year and in either of the two previous years. For 2026 that means more than $3,000 in 2026 and in 2025 or 2024. Due dates are March 15, June 15, September 15 and December 15. See CRA tax instalments for how reminders are calculated.

## Common questions

### How do I pay my CRA balance owing online?

Use online banking with the CRA as a payee, the CRA's My Payment service with a debit card, or a pre-authorized debit set up in My Account. Credit cards work only through a third-party provider that charges a fee.

### What interest rate does the CRA charge on a balance owing?

The prescribed rate on overdue taxes, compounded daily. It is 7% for October 1 to December 31, 2026, and the CRA sets a new rate every quarter.

### What if I owe the CRA less than $2?

Generally, the CRA does not charge a difference of $2 or less, so you do not need to make a payment for it.

### When is my CRA balance owing due if I am self-employed?

April 30, 2027 for 2026 tax. Self-employed people may file until June 15, 2027, but interest on any unpaid balance starts after April 30.

### Can the CRA take my refund to pay my balance?

Yes. The CRA can keep all or part of a future refund, and apply benefit and credit payments, to amounts you owe it.

## Sources

- [Line 48500, Balance owing (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-48500-balance-owing.html)
- [Make a payment to the CRA (individuals)](https://www.canada.ca/en/revenue-agency/services/payments/payments-cra/individual-payments/make-payment.html)
- [Prescribed interest rates, October 1 to December 31, 2026](https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates/2026-q4.html)
- [Required tax instalments for individuals (CRA)](https://www.canada.ca/en/revenue-agency/services/payments/payments-cra/individual-payments/income-tax-instalments.html)
- [Late-filing penalty (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/interest-penalties/late-filing-penalty.html)