CRA interest rate owning back money in July 2025 for T4 employees?

Tax Topics
1

What is the CRA interest rate now owning back money in July 2025 for overpaid tax return for T4 salaried/commissioned employees ?

Is it 5% compound daily or I am reading it wrong?

2

Interest rates:

1 Like
3

So this applies correct for T4 employees? *
The interest rate to be paid on non-corporate taxpayer overpayments will be 5%.

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Yes - for 2025 Q3 - the prescribed rate is 5% annual, which is 0.0137% daily. But, if it was a 2024 tax return, filed before April 30, 2025, refundable interest would start to accrue as of May 30, 2025 - at which time the prescribed rate was 6% annual or 0.0164% daily.

Typically, if the return was filed before the deadline, CRA would have paid out the refund before any interest was payable to the taxpayer. It’s rare that an individual taxpayer gets interest paid to them, though I’ve seen it several times as result of re-assessments.