Quick answer: Your T2 corporate tax return is due six months after your fiscal year-end, but any balance owing is due sooner — usually two or three months after year-end. The late-filing penalty is 5% of the balance owing plus 1% for each month late, up to 12 months; repeat late filing doubles that to 10% plus 2% per month. Filing on time matters even if you can’t pay in full.
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Key takeaways
- Your T2 is due six months after your fiscal year-end.
- Any balance owing is due sooner — usually two or three months after year-end.
- The late-filing penalty is 5% of the balance owing plus 1% per month, up to 12 months.
- Repeat late filing doubles the penalty to 10% plus 2% per month.
Corporate tax deadlines trip up more owners than almost anything else, because the T2 has two separate dates — one to pay, one to file, and they aren’t the same. Miss either and the CRA charges you. Here’s exactly how it works, with the penalty math spelled out.
Work out your own date with the T2 deadline calculator.
Related: Canadian Tax Deadlines for 2026.
The two deadlines every corporation has
Filing deadline: your T2 return is due six months after your fiscal year-end. A December 31 year-end means a June 30 filing deadline; an August 31 year-end means the end of February.
Payment deadline: any balance owing is due before that — generally three months after year-end for a CCPC claiming the small business deduction, or two months otherwise. This is the one owners forget: you can file on time and still owe interest because the money was due earlier.
The late-filing penalty, with a worked example
| First offence | Repeat* | |
|---|---|---|
| Base penalty | 5% of unpaid tax at the due date | 10% |
| Each complete month late | 1% of that balance | 2% |
| Capped at | 12 months | 20 months |
| Fully aged, that is | 17% of the balance | 50% of the balance |
| $10,000 owing, filed 4 months late | $900 | $1,800 |
* Applies where the CRA issued a demand to file and you were penalized in the previous three years.
The CRA’s basic late-filing penalty is 5% of the unpaid tax at the due date, plus 1% for each complete month the return is late, to a maximum of 12 months.
Example: your corporation owes $10,000 and files four months late.
- Base penalty: 5% of $10,000 = $500
- Monthly penalty: 1% × 4 months × $10,000 = $400
- Late-filing penalty total: $900 — before interest
On top of that, interest compounds daily on the unpaid balance from the payment due date. And if the CRA had issued a demand to file and you’d been hit with this penalty in the previous three years, the rate doubles to 10% plus 2% per month, a repeat four-month filing on the same $10,000 becomes $1,800.
Every corporation’s situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts.
Instalments: paying as you go
If your corporation owes more than $3,000 in tax, the CRA generally expects quarterly instalments during the year rather than one payment at the end. Miss them and instalment interest, and potentially a separate instalment penalty — applies. We forecast your tax early so instalments are right-sized and you’re never scrambling. This is core to our corporate tax service.
What to do if you’re already behind
File anyway, immediately — the late-filing penalty is based on the balance owing, so filing on time even when you can’t pay in full avoids the filing penalty entirely and stops the monthly clock. If you’ve missed multiple years, the CRA’s Voluntary Disclosures Program may reduce penalties if you come forward before they contact you.
The bottom line
Two dates, both tied to your year-end, both with real costs for missing them. The simplest fix is to hand the tracking to someone whose job it is. We file every T2 on time and keep clients ahead of both deadlines — entirely online, through our virtual T2 filing service.
To see the arithmetic on your own numbers, the late-filing penalty calculator computes both tracks with the formula shown.
This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please speak with a CPA before acting on anything here.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized businesses in BC, Alberta, Ontario and Manitoba. About the firm → · Send an enquiry →
T2 deadlines and penalties are federal — identical wherever your CPA is based. We file corporate returns for owners across BC, including Vancouver.
For the dates themselves and how they are set, see when a corporate return is due.
Related articles
Full 2026 deadline calendar → Corporate tax services → Virtual T2 filing → How to choose your year-end →Corporate tax instalments → Can’t pay your CRA bill? Your options → The demand-to-file letter and what it changes →Every fiscal year-end, and the filing month it creates →Late GST filing penalties in Canada: what missing the deadline actually costs →Retained earnings: what they are, and what they quietly decide →Subscribe to our Canadian tax deadline calendar — the fixed CRA dates land in your calendar every year with a reminder a week ahead.
For your own dates, the T2 deadline calculator gives the filing and balance-due dates, and the instalment calculator shows whether instalments apply.
Add the deadline calendarFrequently asked questions
When is the T2 corporate tax return due?+
When do I actually have to pay corporate tax?+
What is the penalty for filing a T2 late?+
Do I have to file a T2 if my corporation had no income?+
Why does the payment deadline come before the filing deadline?+
Should I file if I cannot pay the balance?+
What if I have missed several years of corporate returns?+
Never miss a T2 deadline again
We track every filing and payment date for you and file on time. Send an enquiry to hand it off.
More on this subject: the corporate tax library.
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