CRA publishes prescribed interest rates each quarter. If you are in arrears to the government, for example, late paying your income tax instalment, you will be charged interest. Visit Interest rates for the fourth calendar quarter – Canada.ca for the new Q4 (October 1, 2022, to December 31, 2022) rates.
Prescribed interest rates have been steadily increasing over the year as illustrated in the table below.
Prescribed Interest Rates 2022
|Type of Interest||Q1||Q2||Q3||Q4|
|The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums||5%||5%||6%||7%|
|The interest rate to be paid on corporate taxpayer overpayments||1%||1%||2%||3%|
|The interest rate to be paid on non-corporate taxpayer overpayments||3%||3%||4%||5%|
|The interest rate used to calculate taxable benefits for employees and shareholders from interest‑free and low-interest loans||1%||1%||2%||3%|
|The interest rate for corporate taxpayers’ pertinent loans or indebtedness||4.15%||4.38%||5.20%||6.45%|