Quick answer
If you’re self-employed and expect to owe $1,000 or more in federal tax for the year, the IRS expects you to pay it in four quarterly estimated payments using Form 1040-ES. For 2026 income, they’re due April 15, June 15 and September 15, 2026, and January 15, 2027. The simplest safe method: pay one quarter of 100% of last year’s total tax (110% if your AGI was above $150,000), and you won’t owe an underpayment penalty.
Who has to pay estimated taxes?
You generally need to make estimated payments if both are true:
- You expect to owe at least $1,000 in federal tax after subtracting withholding and refundable credits.
- Your withholding and credits will cover less than 90% of this year’s tax or 100% of last year’s tax (110% at higher incomes).
That includes freelancers, independent contractors, gig workers, sole proprietors, single-member LLC owners and partners. If you also have a W-2 job, you can cover the side income with extra withholding instead. See Side Hustle Taxes.
First-year exception: if you had no tax liability last year (and were a US citizen or resident for the whole year), you won’t owe an underpayment penalty this year, but you’ll still owe the full tax when you file.
Estimated tax due dates
| Payment | For income earned | 2026 tax year due date |
|---|---|---|
| 1st | January 1 – March 31 | April 15, 2026 |
| 2nd | April 1 – May 31 | June 15, 2026 |
| 3rd | June 1 – August 31 | September 15, 2026 |
| 4th | September 1 – December 31 | January 15, 2027 |
The «quarters» aren’t equal: the second covers only two months, the fourth four months. If a date falls on a weekend or holiday, the deadline moves to the next business day. Most states with an income tax have their own estimated payments on similar dates.
Tip: if you file your 2026 return and pay everything by February 1, 2027, you can skip the January 15 payment without penalty.
How to calculate your quarterly payments: 3 methods
Method 1: Last year’s tax (safe harbor, easiest)
Take the total tax from last year’s return (Form 1040, «total tax» line), divide by four, and pay that each quarter. Use 110% instead of 100% if last year’s AGI was above $150,000 ($75,000 if married filing separately). You can’t be penalized, even if you end up owing more in April. See The Safe Harbor Rule.
Method 2: This year’s estimate (most accurate)
Estimate this year’s profit and tax using the Form 1040-ES worksheet (or a self-employment tax calculator):
- Estimate your net profit for the year.
- Calculate self-employment tax (profit × 92.35% × 15.3%).
- Calculate income tax after half of SE tax, the standard deduction and the QBI deduction.
- Add them, subtract any withholding, and divide by four.
To avoid a penalty you need to pay at least 90% of this year’s actual tax.
Method 3: Annualized income (for uneven income)
If most of your income arrives late in the year, you can pay based on what you actually earned in each period using the annualized income installment method (Form 2210, Schedule AI). It’s more work, but avoids paying tax on money you haven’t earned yet. Tax software handles it well.
Worked example
Maya is a freelance copywriter, single, no other income. Her 2025 total tax was $10,000. In 2026 she expects $60,000 of profit, which means a total federal tax of about $12,037 (SE tax $8,478 + income tax $3,559).
| Method | Quarterly payment | Result in April 2027 |
|---|---|---|
| Safe harbor (100% of 2025 tax) | $2,500 | Owes $2,037, no penalty |
| 90% of 2026 estimate | about $2,708 | Owes about $1,204, no penalty |
| 100% of 2026 estimate | about $3,009 | Owes about $0 |
Many freelancers pay the safe-harbor amount for peace of mind and keep saving 25-30% of each payment, so the April balance is already set aside. See How Much to Set Aside for Taxes.
How to pay
- IRS Direct Pay: free, from your checking or savings account, no registration. Choose «Estimated Tax» and «1040ES» and the correct tax year.
- Your IRS Online Account: make and schedule payments and see your payment history.
- Debit or credit card: through IRS-approved processors, for a fee.
- Check or money order with a Form 1040-ES voucher.
EFTPS is closing to individual taxpayers in late 2026, so switch to Direct Pay or your Online Account. Step-by-step guide: How to Pay Estimated Taxes Online.
What if you miss a payment or pay too little?
The IRS charges an underpayment penalty, calculated like interest (7% a year in late 2026) on the amount that was short, for the number of days it was late. It’s not a huge flat fine, so pay as soon as you can to stop it growing. You may qualify for a waiver in cases like a casualty, disaster or retirement after age 62 with reasonable cause. See Underpayment Penalty.
Frequently asked questions
Do I have to pay estimated taxes in my first year of freelancing?
If you owed no tax last year, you won’t be penalized for skipping them, but paying quarterly avoids a large bill in April. From your second year, the normal rules apply.
Can I pay all my estimated taxes at once?
You can pay early, but not late. Paying the full year’s amount by April 15 is fine; paying it all in January of the next year would trigger penalties for the earlier quarters.
What if my income changes during the year?
Recalculate and adjust your remaining payments. Higher income? Pay more in the next quarters. Lower income? Pay less.
Do I pay state estimated taxes too?
Most states with an income tax require them, usually on similar dates. Check your state’s revenue department.
What if I have a W-2 job and a side business?
You can increase your W-4 withholding instead. Withholding is treated as paid evenly through the year, which can fix earlier underpayments.
This article is general information, not tax advice. Consult a CPA or Enrolled Agent for your situation.
Sources
- Interest rates remain the same for the fourth quarter of 2026 (IRS): 7% underpayment rate.
- IRS is phasing out EFTPS: what taxpayers need to know (MFG Tax Services, June 2026): EFTPS closing to individuals in late 2026; Direct Pay and Online Account as alternatives.
- IRS releases tax inflation adjustments for tax year 2026 (IRS): figures used in the example.
The $1,000 threshold, 90%/100%/110% rules, first-year exception, due dates and the January filing option come from IRS Form 1040-ES instructions and Publication 505.