T4 Code 36 — Interest-free or low-interest loan
Imputed interest benefit from an employer loan below the CRA prescribed rate — taxable, already in Box 14.
At a glance — Code 36
- Box name
- Interest-free or low-interest loan
- T1 line
- Not reported on T1 directly
- Check against
- Current CRA prescribed rate (updated quarterly) times the loan balance for the days it was outstanding.
What Code 36 means
Code 36 reports the deemed interest benefit when an employer gives you a loan at below the CRA prescribed rate. The benefit is (prescribed rate − actual rate) × loan balance × days outstanding ÷ 365.
The prescribed rate has been relatively high since 2023 (5-6% range) compared to historical ~1-2%, making these benefits materially bigger than they used to be.
If the loan was used to acquire investments (not a personal loan), you may be able to deduct the Code 36 amount as investment carrying charges on Line 22100.
Tax return implications
- Already in Box 14 — do not add separately.
- If the loan proceeds purchased income-producing investments, claim a Line 22100 deduction to offset the benefit.
- Home-purchase / relocation loans have a 5-year cap where the prescribed rate is locked at the lower of the rate at loan inception and the current rate.
Related T4 boxes
Code 30 — Board and lodging
Taxable value of employer-provided meals and accommodation — already included in Box 14 via Box 40.
Code 31 — Special work site (board & lodging exempted)
Value of board and lodging at a qualifying special work site — reported for reference, not taxable.
Code 32 — Travel in a prescribed zone
Employer-paid travel benefits for workers in Northern or Intermediate prescribed zones — needed to claim the Northern Residents travel deduction.
Code 34 — Personal use of employer's automobile
Taxable benefit from a company vehicle — standby charge + operating benefit — already included in Box 14.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).