On a Canadian tax summary or Notice of Assessment, the line labeled “(+) tax payable / (−) refundable (6−7)” is the bottom-line result of your return. It’s the number that tells you whether you owe the Canada Revenue Agency or the CRA owes you. A positive figure means tax payable: you still owe. A negative figure means refundable: a refund is coming. The “(6−7)” is the arithmetic behind it — item 6 on the summary (your total tax payable) minus item 7 (your total credits).
Decoding the Label
The signs and the numbers in parentheses each carry a specific meaning. The plus sign flags a balance owing. The minus sign flags a refund. The “(6−7)” points to the two summary items the CRA subtracted to reach that result.
Item 6 is your total payable for the year. It rolls up federal tax, provincial or territorial tax, CPP contributions on self-employment income, EI premiums on self-employment earnings, and any social benefits repayment. On the T1 return itself, this total sits on Line 43500.
Item 7 is your total credits. It gathers everything you’ve already paid toward that bill or are entitled to receive back: tax deducted at source from your paycheques, quarterly instalments, refundable credits such as the GST/HST credit and the Canada Workers Benefit, any CPP or EI overpayments, and climate action incentive payments.1Canada Revenue Agency. Completing a Basic Tax Return – Section: Step 6 Refund or Balance Owing
Subtract item 7 from item 6 and you get the figure on that line. If credits exceed what you owe, the result is negative and you get a refund. If your tax bill exceeds your credits, the result is positive and you owe the difference.
Which Line the Result Lands On
On the T1 return, the final number appears on one of two lines, never both. Line 48400 shows a refund. Line 48500 shows a balance owing.2Canada Revenue Agency. Federal Income Tax and Benefit Information for 2025 If your return comes out exactly even, your Notice of Assessment will say “Balance: Nil” in the account summary at the top.3Canada Revenue Agency. Notices of Assessment – NOA or NOR – Personal Income Tax
If the Number Is Positive: You Owe
A positive amount means withholdings and any instalments you paid during the year didn’t fully cover your tax liability. This is common with self-employment income, rental income, or investment gains, since none of those have tax withheld at source the way employment income does.
The balance is due April 30.4Canada Revenue Agency. Due Dates and Payment Dates – Personal Income Tax After that date, the CRA charges compound daily interest on the unpaid amount. The prescribed rate on overdue individual taxes for Q2 2026 is 7% per year, and interest accrues every day including weekends and holidays.5Canada Revenue Agency. Interest Rates for the Second Calendar Quarter
Filing late brings a separate penalty on top of interest. The late-filing penalty is 5% of the balance owing plus 1% for each full month the return is outstanding, up to 12 months, for a maximum of 17%. If the CRA charged you a late-filing penalty for any of the three preceding tax years and issued you a formal demand to file, the penalty doubles: 10% of the balance owing plus 2% per full month, up to 20 months.6Canada Revenue Agency. Interest and Penalties on Late Taxes These rates come from section 162 of the Income Tax Act.7Justice Laws Website. Income Tax Act RSC 1985 c 1 (5th Supp) – Section 162
One deadline detail catches self-employed filers. Your filing deadline is June 15, but any tax owing is still due April 30.4Canada Revenue Agency. Due Dates and Payment Dates – Personal Income Tax Filing in early June avoids the late-filing penalty, but if you paid nothing by April 30, interest has already been running for six weeks.
Paying What You Owe
The simplest payment method is online banking. Add “CRA (revenue) – current-year tax return” as a payee and use your Social Insurance Number as the account number. You can also set up a pre-authorized debit through CRA My Account, scheduled at least five business days before the withdrawal date.8Canada Revenue Agency. Make a Payment – Payments to the CRA Credit and debit card payments run through third-party providers that charge their own service fees.9Canada Revenue Agency. Pay Through a Third-Party Service Provider – Payments to the CRA
If You Cannot Pay in Full
File on time anyway. Filing by the deadline eliminates the late-filing penalty completely, even if you don’t pay a cent. Interest still runs on the unpaid balance, but that’s far cheaper than interest with a penalty of 5% to 17% stacked on top.
The CRA lets you spread the debt out through a payment arrangement. You can schedule pre-authorized debit payments through My Account or call the automated TeleArrangement service.10Canada Revenue Agency. Arrange to Pay Your Debt Over Time – Payments to the CRA Interest keeps accruing during the arrangement, but the CRA won’t take collection action as long as you stick to the schedule and file future returns on time.
If the Number Is Negative: You Get a Refund
A negative figure means you overpaid during the year, either because your employer withheld more tax than needed or because refundable credits like the Canada Workers Benefit, the GST/HST credit, or climate action incentive payments pushed your total credits above your tax bill. The surplus is yours, and the CRA is required to return it.
Refunds arrive fastest by direct deposit into a Canadian bank account registered with the CRA. You can set this up through CRA My Account, through your financial institution, or by mailing an enrolment form.11Canada Revenue Agency. Direct Deposit for Individuals – Payments the CRA Sends You Electronic filers with direct deposit on file generally see the money within two weeks of the CRA processing the return. Paper-filed returns typically take six to eight weeks. Without direct deposit, the CRA mails a cheque to the address on your return, so make sure your mailing address is current in My Account before filing.
If you consistently get a large refund, you’re effectively lending the CRA money at zero interest for the year. Filing a Form T1213 asks the CRA to authorize your employer to reduce the tax deducted from each paycheque, putting the money in your pocket as you earn it instead of months later as a lump sum.
If the Assessed Number Looks Wrong
The figure on that line is what the CRA calculated, and its math sometimes differs from what your software produced, usually because the CRA adjusted an entry. Start with the “Explanation of changes” section of your Notice of Assessment. It spells out what was changed and why. Sometimes a missed T4 slip or a corrected credit accounts for the difference, and the CRA’s number is right.
If you still disagree after reading the explanation, you can file a formal objection. The deadline is whichever comes later: 90 days after the date on your NOA, or one year after your filing deadline.12Canada Revenue Agency. Income Tax Objections Decision Tree Objections can be filed online through My Account or by mail. You’re still required to pay the assessed amount by the deadline while the objection is under review; if it’s resolved in your favour, the CRA refunds the overpayment with interest.