Canada - CRA: Q4-2025 prescribed interest rates for late/overpaid payroll remittances announced
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On Aug 21, 2025, the Canada Revenue Agency (CRA) published the prescribed interest rates for Oct 1–Dec 31, 2025. Overdue remittances (including payroll source deductions such as CPP, EI, and income tax) will accrue interest at 7%; overpayments earn 3% for corporate taxpayers and 5% for non-corporate taxpayers. These rates also apply to other federal taxes and charges listed by CRA.
Effective Date
- Oct 1–Dec 31, 2025
Published
- Aug 21, 2025
Impact
- Changes interest expense/credit on late or overpaid payroll remittances for Q4-2025; affects penalty/interest modeling and cash forecasting.
Payroll action
- Update internal Q4 interest assumptions; ensure payroll remittances are on time to avoid the 7% arrears rate.