If you’re self-employed, you have until June 15th to file your taxes, giving you a bit of extra time to get everything organized, BUT you have to pay any taxes owing by April 30th. Just keep in mind that any balance owing begins accruing interest with the CRA starting May 1, so it’s worth planning ahead to stay on track.

Late fees start if you don’t pay by April 30. Interest on balances can add up quickly, so even an estimate and early payment can help you avoid extra

Paying on time isn’t just about following the rules—it’s about protecting your profit. Current interest rates on balances owing can be surprisingly high, and that interest compounds daily. Even if you haven’t finished your full return yet, it’s often a smart move to estimate your owing and make a payment by the 30th to keep those extra costs at zero.

The CRA doesn’t just charge a flat rate; they use a “prescribed rate” that is updated every three months. For the second quarter of 2026 (April 1 to June 30), the rates are as follows:

• Interest on Owed Tax: 7% (compounded daily).
• Late-Filing Penalty: If you fail to file your return by your specific deadline (June 15 for self-employed), the CRA adds a one-time penalty of 5% of your balance owing, plus an additional 1% for each full month the return is late (up to 12 months).

Important Distinctions

Category	Deadline	Interest Starts
Payment Deadline	April 30, 2026	May 1, 2026
Filing Deadline (Self-Employed)	June 15, 2026	June 16, 2026 (Penalty only)

Pro-Tip: If you can’t pay the full amount right away, you should still file your return on time. Filing by June 15th prevents the 5% late-filing penalty from being tacked onto your bill, leaving you with only the 7% interest on the unpaid balance.

Commonly Overlooked Deductions

Before you finalize your numbers, take a second look at these three areas where self-employed clients miss out on valid deductions:

• The Home Office: If you work from home, you can deduct a portion of your rent, mortgage interest, utilities, and home insurance. The key is calculating the square footage of your workspace relative to the rest of your home. It might seem like a small percentage, but it adds up significantly over 12 months.
• The Vehicle Logbook: You can deduct vehicle expenses, but the CRA is very particular about documentation. If you’re claiming 60% business use, you need a logbook to prove it. If you haven’t been keeping one, start now for next year, and for this year, do your best to reconstruct it using your calendar and service receipts.
• Digital Subscriptions: In today’s economy, it has become a growing category. Software tools, cloud storage, accounting platforms, and other online services you use to run your business are generally deductible. These smaller expenses can add up quickly over the year.

A Quick Note on GST/HST

If you’re a quarterly filer,  your Q1 GST/HST return—covering January through March—is also due on April 30, along with any payment owing.

 It’s easy to get so focused on your annual income tax that you forget the quarterly GST/HST obligation. Ensure you’ve set aside those collected tax dollars so they don’t get swallowed up by your personal tax bill.

The “Paper Trail” Check

Missing documents can slow everything down. If you’re waiting on a T4A or other slips, start by checking your CRA online account. Many documents are uploaded there and available sooner than you might expect.

If something is still missing, reach out directly to the client or issuer. In cases where you can’t obtain the document in time, you can estimate the income based on your records. Just make sure your estimate is reasonable and keep notes on how you arrived at the number.

The goal is to file as accurately as possible without unnecessary delays.

A Simple Way to Stay Ahead

The goal of this final stretch is simply organization and accuracy. Take an hour this evening to gather your digital receipts, check your GST/HST status, and make sure your payment plan is ready for the 30th.

Stay organized, stay calm, and remember—the work you do now to get your “house in order” will save you a lot of stress (and interest) come May.