File after the deadline and a penalty can land on top of the tax you owe. The CRA can cancel or waive penalties and interest in some cases. Here is how the penalty works and how to ask for relief.
When the penalty applies
You face it when you have a balance owing and file after the due date, usually April 30. The penalty is 5% of the balance owing, plus 1% for each full month the return is late, up to 12 months. Repeat late filers pay a higher rate. Owe nothing, and no penalty applies.
Interest on the balance
Interest runs on the unpaid balance and on unpaid penalties, starting the day after the due date. It compounds daily, at a rate the CRA sets every quarter. Even a part payment early lowers the interest, so pay what you can.
What taxpayer relief means
The CRA has discretion to cancel or waive penalties and interest when someone can’t meet their obligations for reasons beyond their control. The rules are called the taxpayer relief provisions. Nothing happens automatically. You have to ask, and you have to explain why.
Circumstances the CRA accepts
The CRA lists examples: natural or human-made disasters, civil disturbances, disruptions in postal or other services, a serious illness or accident, and serious emotional or mental distress, such as a death in the immediate family. Forgetting the deadline is not on the list.
Other grounds for relief
Relief may also follow a CRA error, a CRA delay or financial hardship that stops you paying. Explain your case, and keep documents such as medical letters, postal notices or copies of correspondence.
Making the request
Ask online in CRA My Account, or complete Form RC4288, Request for Taxpayer Relief, and send it online or by mail. State the period, the amount and the reason, then attach proof. Each request is reviewed on its facts.
The ten-year limit
The CRA can look only at periods that ended within 10 calendar years before the year of your request. For interest, only amounts that built up in that window count. Sitting on an old balance? Ask sooner, not later.
Planning while you wait
File the return even if you can’t pay. A relief request doesn’t stop the CRA from collecting, so ask about a payment arrangement too. Estimate the balance in the tax refund calculator, and if you’ve missed years, see the notices and unfiled returns guide.
Common questions
How much is the CRA late-filing penalty?
Is there a penalty if I owe nothing?
Can the CRA cancel penalties and interest?
Which form do I use?
How far back can I ask?
Is forgetting a valid reason?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.