Low frequency communication, taking advantage of the features of low frequency electromagnetic signals in near field, is widely used in through-the-earth (TTE) wireless applications. However, the low frequency non-Gaussian noise severely limits the communication performance. In this paper, an adaptive noise cancellation algorithm based on time delay estimation (ANC-TDE) and maximum correntropy criterion (MCC) is proposed. The explicit time delay estimation algorithm based on MCC (MCC-ETDE) is used to estimate the time-varying delay and the noise correlationship between the primary input and reference inputs. With a reference noise selected and time delay compensated, the non-Gaussian noise is canceled by adaptive filter based on MCC. The proposed algorithm is implemented on field programmable gate array (FPGA) and the performance is evaluated by simulation and experiment. As shown in the results, the ANC-TDE algorithm can reduce the complexity of ANC filter and adaptively compensate the varied time delay between the primary input and reference input. With the time delay compensated, the ANC-TDE algorithm has better performance in non-Gaussian noise environment and is more suitable for real-time systems.