Worked example
A single freelancer expecting $60,000 of profit in 2026, with no other job, owes about $12,037 in federal tax: $3,559 of income tax and $8,478 of self-employment tax. To stay penalty-free they need to pay at least 90% of that, $10,833, or $2,708 in each of the four payments.
Who has to pay estimated tax
Nobody withholds tax from freelance income, so the IRS expects you to pay it during the year in four instalments. You need to make estimated payments if you expect to owe at least $1,000 for 2026 after subtracting any tax withheld from a job and your refundable credits.
Miss them and you can be charged an underpayment penalty, which works like interest on the amount that was late, counted separately for each quarter. Paying a big bill in April does not undo a penalty for paying too little in June.
2026 payment due dates
| Payment | Income earned | Due date |
|---|---|---|
| Q1 | Jan 1 to Mar 31 | Apr 15, 2026 |
| Q2 | Apr 1 to May 31 | Jun 15, 2026 |
| Q3 | Jun 1 to Aug 31 | Sep 15, 2026 |
| Q4 | Sep 1 to Dec 31 | Jan 15, 2027 |
If a due date falls on a weekend or federal holiday, the deadline moves to the next business day. You can skip the January payment if you file your 2026 return and pay the full balance by the end of January 2027.
The safe harbor rules
You avoid the penalty if your withholding and estimated payments, paid on time, add up to the smaller of:
- 90% of the tax on your 2026 return, or
- 100% of the tax on your 2025 return, or 110% if your 2025 adjusted gross income was over $150,000 ($75,000 if married filing separately).
The prior-year rule is the one to lean on when your income is rising, because you know the number already and it can't grow with a strong year. Enter last year's total tax from Form 1040 line 24 in the calculator and it will use whichever rule needs less.
How this calculator works
It estimates your full 2026 federal bill: self-employment tax on 92.35% of your profit, then income tax after the standard deduction, half of your self-employment tax and the 20% qualified business income deduction. It subtracts withholding and payments already made and divides what is left by the number of payments remaining.
State income tax is not included. Most states with an income tax also expect quarterly payments, often on the same dates.
How to pay
- IRS Direct Pay takes money straight from a bank account, with no fee and no sign-up. Choose "Estimated Tax" and Form 1040-ES for 2026.
- Your IRS Online Account lets you pay and see every payment you have made for the year.
- EFTPS lets you schedule all four payments in advance.
- Card payments work through approved processors but charge a fee.
Common questions
What happens if I miss a quarterly payment?
The IRS charges a penalty based on how much was underpaid and for how long, calculated at its quarterly interest rate. Pay as soon as you can: the penalty stops growing once the shortfall is paid.
Can I pay all my estimated tax at once?
Yes, you can pay the year's estimate with the April payment. Paying late is penalised, but paying early is not.
My income is uneven. Do I still pay equal amounts?
You can use the annualized income installment method on Form 2210, Schedule AI, which matches payments to when you actually earned the money. It helps if most of your income comes late in the year.
Do I need to pay estimated tax in my first year freelancing?
If you had no tax liability last year and were a US citizen or resident for the whole year, you owe no penalty for the current year. You still owe the tax when you file, so setting money aside is wise.
Does a W-2 job change anything?
Yes. Tax withheld from wages counts toward the safe harbor, and it counts as if paid evenly through the year. Raising withholding on Form W-4 can replace estimated payments entirely.
Official sources: IRS: Estimated taxes, IRS Form 1040-ES. This calculator gives estimates for planning, not tax advice. Read the disclaimer.