Late GST/HST return
GST/HST penalty & interest calculator
Filed your GST/HST return late? Estimate the CRA failure-to-file penalty and the arrears interest, so you know exactly what you are looking at before you pay.
- CRA failure-to-file penalty formula
- Arrears interest at the current rate
- Know the number before you pay
GST/HST Penalty & Interest Calculator
CRA failure-to-file penalty · arrears interest
Your net tax owing (GST/HST collected minus your input tax credits). If you are owed a refund, there is no failure-to-file penalty.
Counted from the day after the return was due. The penalty stops growing after 12 months; interest keeps accruing.
Enter the amount owing and how late the return is to estimate your penalty and interest.
What the CRA charges for a late GST/HST return
A late GST/HST return with a balance owing gets hit twice: a failure-to-file penalty for being late, and arrears interest on the money itself. The penalty is 1% of what you owe, plus a further 0.25% for each complete month the return is overdue, up to twelve months. After that the penalty stops climbing, but interest does not.
The most important thing to know is that the penalty is tied to filing, not paying. If you file on time but cannot pay, you avoid the failure-to-file penalty entirely and only face interest on the balance. That is why the standard advice is to file the return the moment it is ready, even if the payment has to follow.
The cleanest fix is to never be here. Knowing how often you have to file and setting the tax aside as you collect it keeps the deadline from becoming a scramble. If you have not registered yet, our guide on when to register for GST/HST covers the $30,000 threshold.
Frequently asked questions
How is the GST/HST late-filing penalty calculated?
The CRA failure-to-file penalty is A + (B times C), where A is 1% of the amount you owe, B is 25% of A, and C is the number of complete months the return is overdue, up to a maximum of 12 months. So a return that is five months late with a balance owing carries a penalty of 1% plus 0.25% for each of those five months.
Is there a penalty if I file late but do not owe anything?
The failure-to-file penalty is based on the amount owing, so if your return is nil or you are due a refund, that specific penalty is zero. It is still worth filing on time. The CRA can issue a demand to file, and a penalty for ignoring a demand is much steeper. Late filing can also delay any refund or credit you are owed.
What interest does the CRA charge on late GST/HST?
On top of the penalty, the CRA charges arrears interest on the unpaid amount at a prescribed rate, compounded daily. That rate is set every calendar quarter, so a balance outstanding across several quarters can be charged at different rates over time. This calculator uses the current quarter's rate as an estimate.
Should I file my GST/HST return even if I cannot pay?
Yes. The failure-to-file penalty is for filing late, which is separate from interest on the unpaid balance. Filing the return, even before you can pay, stops that penalty from growing. You can then arrange a payment plan with the CRA for the balance, while interest continues only on what is still owing.
How do I avoid GST/HST penalties in the future?
Know your filing frequency and deadline, set aside the tax you collect so the money is there when the return is due, and track your rolling revenue so you register on time in the first place. NorthOS tracks your GST/HST as you invoice and flags each deadline, so a late return does not sneak up on you.
Keep going
Track GST/HST and every deadline with NorthOSThis calculator is for information only and is not tax advice. Interest is an estimate based on the current prescribed rate, which changes quarterly. Verify with the CRA or a qualified professional.