Quarterly Estimated Taxes: How Much to Pay and When

When you're a W-2 employee, taxes are withheld from every paycheck automatically. When you're self-employed or own a business, you become responsible for sending that money to the IRS yourself — usually four times a year. These are called quarterly estimated taxes, and getting them right keeps you penalty-free and prevents a nasty surprise in April.

Who has to pay quarterly estimated taxes?

Generally, you need to pay estimated taxes if you expect to owe $1,000 or more when you file, and you don't have enough tax withheld elsewhere. That includes:

• Self-employed people, freelancers and 1099 contractors
• Single-member LLC and partnership owners
• S-corp owners on their distributions
• Anyone with significant income that isn't subject to withholding (investments, rental income, side businesses)

The 2026 estimated tax due dates

Estimated taxes are paid in four installments. For the 2026 tax year, the deadlines are:

• Q1: April 15, 2026 (for income earned Jan–Mar)
• Q2: June 15, 2026 (Apr–May)
• Q3: September 15, 2026 (Jun–Aug)
• Q4: January 15, 2027 (Sep–Dec)

Miss a deadline and the IRS charges an underpayment penalty — essentially interest on what you should have paid — even if you pay in full in April.

How much should you pay each quarter?

There are two common approaches. The simplest is the safe-harbor rule: pay at least 100% of last year's total tax (110% if your income was high), split into four payments, and you generally avoid penalties no matter what this year brings. The more precise approach is to estimate your actual income and set aside roughly 25–30% of your net profit for federal taxes, adjusting as the year unfolds.

A practical habit that saves a lot of stress: move a percentage of every payment you receive into a separate "tax" savings account. When the quarterly deadline comes, the money is already there.

How to actually pay

You can pay online through the IRS Direct Pay system or the Electronic Federal Tax Payment System (EFTPS), or by mailing a voucher (Form 1040-ES). Online is faster and gives you a confirmation. Keep a record of every payment — you'll report the total on your return.

The easiest way to never worry about it

Estimated taxes are exactly the kind of thing that's simple in theory and easy to fumble in practice — especially in a year when your income jumps. This is where year-round tax planning pays off: we project your income, tell you exactly what to send each quarter, and adjust as you go, so you're never underpaid (penalties) or wildly overpaid (an interest-free loan to the IRS). If your books are clean, calculating estimates is quick — one more reason good bookkeeping matters.