Filing

Quarterly Estimated Tax Payments: When and How Much

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Quarterly Estimated Tax Payments: When and How Much

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

If you are self-employed, a freelancer, a gig worker, or have income without tax withholding, you are likely required to make quarterly estimated tax payments. Missing these payments results in penalties that add up every quarter.

Who Must Make Estimated Payments?

You generally must make estimated payments if:

  1. You expect to owe $1,000 or more in federal tax after subtracting withholding and credits
  2. Your withholding and credits will be less than the smaller of:
    • 90% of the current year’s tax
    • 100% of the prior year’s tax (110% if prior year AGI exceeded $150,000)

This commonly applies to:

  • Self-employed individuals and freelancers
  • Gig workers (Uber, DoorDash, etc.)
  • Landlords with rental income
  • Investors with significant capital gains or dividends
  • Retirees without adequate withholding
  • Anyone with a side business

2026 Quarterly Payment Deadlines

QuarterIncome PeriodDue Date
Q1January 1 – March 31April 15, 2026
Q2April 1 – May 31June 16, 2026
Q3June 1 – August 31September 15, 2026
Q4September 1 – December 31January 15, 2027

Note: The quarters are not evenly distributed. Q2 covers only two months, while Q3 covers three.

If the due date falls on a weekend or holiday, the deadline shifts to the next business day.

For all 2026 dates, see Tax Filing Deadlines 2026: Every Important Date.

How to Calculate Your Estimated Payments

Method 1: Prior Year Safe Harbor (Simplest)

Take your total tax from last year and divide by four. Pay that amount each quarter.

Prior Year AGIPay at Least
$150,000 or less100% of prior year tax (÷ 4 per quarter)
Over $150,000110% of prior year tax (÷ 4 per quarter)

Example: Your 2025 total tax was $20,000 and your AGI was under $150,000. Each quarterly payment: $20,000 / 4 = $5,000.

This guarantees no underpayment penalty, even if your 2026 income is much higher.

Method 2: Current Year Estimate

Estimate your 2026 income, deductions, and credits. Calculate the expected tax and divide by four (or by remaining quarters if starting mid-year).

This method is better if:

  • Your income has dropped significantly from last year
  • You are starting a new business
  • Your income varies widely by quarter

Method 3: Annualized Income Installment Method

For filers with irregular income (seasonal businesses, commissioned workers), this method calculates each quarter’s payment based on income actually earned in that period. File Form 2210 Schedule AI to use this method.

Use our Estimated Quarterly Tax Calculator for an instant calculation.

How to Make Payments

MethodDetails
IRS Direct Pay (irs.gov)Free; pay from bank account; no registration required
EFTPS (Electronic Federal Tax Payment System)Free; requires registration; best for recurring payments
IRS2Go appMobile payment through Direct Pay or card
Credit/debit cardThrough approved processors; fees apply (1.85%–1.98% credit; $2.50 debit)
Check/money orderMail with Form 1040-ES voucher

Recommended: Set up EFTPS for automatic quarterly payments. Once registered, you can schedule payments in advance and never miss a deadline.

Underpayment Penalties

If you do not pay enough by each quarterly deadline, the IRS charges a penalty calculated at the federal short-term interest rate plus 3 percentage points (approximately 8% in 2026).

The penalty is calculated separately for each quarter, so a late Q1 payment accrues penalties longer than a late Q4 payment.

How to Avoid Penalties

  1. Use the safe harbor — Pay 100% of last year’s tax (110% if AGI over $150,000)
  2. Pay on time — Even if your estimate is imperfect, paying something each quarter reduces penalties
  3. Increase W-2 withholding — If you have a day job, increase withholding to cover side income (withholding is treated as paid evenly throughout the year, even if increased in Q4)
  4. Use the annualized method — Reduces payments in low-income quarters

Estimated Payments for State Taxes

Most states with income tax also require quarterly estimated payments. Due dates typically mirror the federal schedule, but some states differ.

StateSame as Federal?Notes
CaliforniaYesUses Form 540-ES
New YorkYesUses Form IT-2105
TexasN/ANo state income tax
IllinoisYesUses Form IL-1040-ES

Check State Income Tax Comparison: All 50 States Ranked for your state’s requirements.

Tips for Managing Quarterly Payments

  1. Set aside money with each payment received — Transfer 25–30% of every gig or freelance payment into a dedicated tax savings account
  2. Automate payments — Use EFTPS to schedule quarterly payments automatically
  3. Reconcile quarterly — Compare estimated payments to actual income each quarter and adjust
  4. Keep records — Save confirmation numbers and receipts for every payment
  5. Overpay slightly — A small overpayment is better than an underpayment penalty; you will get the excess back as a refund

Key Takeaways

  • Quarterly estimated payments are required if you expect to owe $1,000+ after withholding
  • The safe harbor method (100% or 110% of prior year tax) is the simplest way to avoid penalties
  • Payments are due April 15, June 16, September 15, and January 15
  • IRS Direct Pay and EFTPS are the best free payment methods
  • Underpayment penalties are calculated separately for each quarter at approximately 8%
  • State estimated payments are usually required in addition to federal

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