Personal Tax Tip – Filing Taxes Late? Potential Penalties (Updated: 2026)

Filing Taxes Late – Potential Penalties

The deadlines for filing your personal income tax return are typically April 30 (or the next business day if that date falls on a weekend or holiday) if you have no business income, and June 15 if you are self-employed. If you have already missed the filing deadline, what penalties will you be facing if you didn’t file on time?

The CRA will charge 5% of your balance owing, plus 1% of the balance owing for each full month the return is late, up to 12 months maximum. So if you file your taxes three months after the deadline, you will owe the CRA an additional 8% of your balance owing—5% base, plus 1% for each of the three months. If this is not the first time taxes have been filed late—and the CRA had issued a demand to file in one of the previous three years—the CRA can increase that penalty to 10% of the balance owing, plus 2% per full month, up to 20 months.

Separately from the late-filing penalty, the CRA charges interest on any unpaid balance. Interest compounds daily starting the day after the balance-due date (e.g. the day after April 30 for most individuals). So if you’re self-employed, you don’t have to file until June 15—but if you end up owing tax when you do file, the CRA will start charging you interest on that balance from the balance-due date (e.g. May 1), not from June 15. Filing on time stops the late-filing penalty from applying; it does not stop interest from accruing on amounts you still owe.

It is important to get your taxes completed on time or as soon as possible. Filing on time even when you can’t pay in full avoids the late-filing penalty (though interest will still apply to the unpaid amount). If you can’t pay your balance owing by the deadline, the CRA offers payment arrangements—contact them or visit their website for options. If you’d like help filing, catching up, or dealing with penalties and interest, contact us today and let us help you, and visit our Personal Tax Resources page for useful tax filing information.

This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.