The CRA’s GST late-filing penalty is 1% of the balance owing plus 0.25% per complete month late, up to 12 months (a 4% maximum), and only applies if you owe tax. File the return even if you cannot pay in full, then check GST/HST filing deadlines and CRA’s payment options.
How the GST/HST late filing penalty is calculated
CRA’s formula is A + (B × C): A is 1% of the amount owing; B is 25% of A; and C is the number of complete months late, up to 12. CRA does not charge this particular late-filing penalty if there is no amount owing or the return is a refund. Other obligations still apply. CRA: GST/HST filing penalties
For example, if the amount owing is $4,000 and the return is two complete months late, A is $40, B is $10, and the penalty is $40 + ($10 × 2) = $60. This example excludes interest and any other penalty. A partial month is not a complete month in this formula.
| Complete months late | Penalty on $4,000 owing |
|---|---|
| 0 | $40 |
| 1 | $50 |
| 2 | $60 |
| 3 | $70 |
| 6 | $100 |
| 12 (maximum) | $160 (4%) |
What is the maximum GST late-filing penalty?
The formula caps at 12 complete months, so the maximum late-filing penalty is 4% of the balance owing (1% plus 0.25% for 12 months). Interest keeps running on any unpaid balance after that. If you do not file after receiving a CRA demand to file, you may be charged a $250 penalty, in addition to other penalties that may apply. CRA: filing penalties
CRA interest on late GST/HST
CRA charges interest on an overdue balance at the prescribed interest rate, compounded daily. The rate is set each calendar quarter. For October 1 to December 31, 2026, the CRA interest rate on overdue GST and HST remittances is 7% per year; use the applicable quarter’s rate for any other period. Paying the balance earlier reduces the time over which arrears interest accrues, but does not itself file the return. CRA: current-quarter rates, CRA: interest on late payments
The rate has held at 7% for six straight quarters:
| Quarter | Overdue GST/HST rate |
|---|---|
| Jul 1 – Sep 30, 2025 | 7% |
| Oct 1 – Dec 31, 2025 | 7% |
| Jan 1 – Mar 31, 2026 | 7% |
| Apr 1 – Jun 30, 2026 | 7% |
| Jul 1 – Sep 30, 2026 | 7% |
| Oct 1 – Dec 31, 2026 | 7% |
Example: a $4,000 balance paid 60 days late builds up about $46 in arrears interest at the 7% rate, compounded daily. This is separate from, and in addition to, the late-filing penalty above. Rates checked against canada.ca on 2026-10-21.
| Charge | How it works | Applies when |
|---|---|---|
| GST/HST late-filing penalty | 1% of the balance owing + 0.25% per complete month late, up to 12 months (4% maximum) | Only if there is a balance owing |
| Arrears interest | CRA’s prescribed interest rate, compounded daily | Runs from the day after the balance was due until it is paid |
| Failure-to-file-electronically penalty | $100 for the first paper return, $250 for each later one | Applies when electronic filing is mandatory and the return is filed on paper |
GST/HST vs income-tax late-filing penalty
The GST/HST late-filing penalty (1% + 0.25%/month, up to 12 months) is a different rule from the one for a personal (T1) income-tax return.
| Return | Late-filing penalty (first offence) |
|---|---|
| GST/HST (this page) | 1% of balance owing + 0.25%/month, up to 12 months (4% max) |
| T1 personal income tax | 5% of balance owing + 1%/month, up to 12 months (17% max); for a 2025 return, if you were penalized in 2022, 2023, or 2024 and received a demand to file: 10% + 2%/month, up to 20 months |
CRA: late-filing penalty for individuals
Other penalties and instalments
Failure to file electronically when required triggers a separate penalty: $100 for the first return and $250 for each subsequent return filed non-electronically. CRA also lists a $250 penalty for failing to comply with a demand to file, and special penalties for certain incorrect electronic reporting. Interest may also arise from late or insufficient required instalments; it is not the same as the late-return penalty. CRA: filing penalties, CRA: instalment interest
What to do after a missed deadline
- Identify the RT account, reporting period and amounts, and prepare the overdue return from your records.
- File using an applicable method; most registrants must file electronically for periods beginning on or after January 1, 2024, subject to CRA’s exceptions.
- Pay what you can and contact CRA if you cannot pay in full or on time.
- Keep filing and payment confirmations, then review any CRA assessment and interest; if you need to correct a filed return, see amending a GST/HST return. A taxpayer-relief request may be available in eligible circumstances; relief is not automatic. CRA: taxpayer relief CRA: deadlines and electronic filing, CRA: payment