Quarterly Estimated Taxes for the Self-Employed: 2026 Guide
If you're self-employed and expect to owe at least $1,000 of 2026 federal tax after withholding, you generally must pay estimated tax on April 15, June 15, Sept. 15, 2026 and Jan. 15, 2027. Paying the smaller of 90% of 2026 tax or 100% of 2025 tax (110% if 2025 AGI topped $150,000) generally avoids the penalty.
Nobody takes tax out of a freelancer's pay, so the IRS expects you to send it in yourself during the year. Those payments are called estimated taxes, and the form is Form 1040-ES. This guide explains who has to pay, how to work out the amount, which dates matter for 2026, and what happens if you fall behind. Every number comes from the 2026 Form 1040-ES, the Internal Revenue Code and our verified 2026 tax constants.
If you'd rather skip the math, our free Quarterly Estimated Tax Calculator runs the same steps in your browser.
Who has to pay quarterly estimated taxes in 2026?
Under the 2026 Form 1040-ES, you generally must pay estimated tax for 2026 if both of these are true:
- You expect to owe at least $1,000 in tax for 2026 after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax on your 2026 return, or
- 100% of the tax on your 2025 return (110% for higher earners, covered below). Your 2025 return must cover all 12 months.
"Tax" here means your total federal tax. That includes income tax and self-employment tax, less refundable credits. It is not your refund or your balance due.
There is also a full exception. You don't have to pay estimated tax for 2026 if you were a US citizen or resident alien for all of 2025 and you had no tax liability for the full 12-month 2025 tax year. The 1040-ES says you had no liability if your total tax was zero or you didn't have to file a return.
| Your situation | Estimated payments for 2026? |
|---|---|
| You expect to owe less than $1,000 after withholding | Generally not required |
| Your withholding already covers the required annual payment | Generally not required |
| Your 2025 tax was zero, 2025 was a full year and you were a US citizen or resident all year | Not required (you still owe the 2026 tax when you file) |
| You expect to owe $1,000 or more and withholding falls short | Generally required |
We go through the $1,000 rule with examples in Do I Have to Pay Quarterly Taxes?.
When are estimated tax payments due for 2026 and 2027?
The fourth payment for a tax year is due in January of the following year. That trips people up. The January 15, 2027 payment belongs to tax year 2026.
| Installment | Tax year 2026 (2026 Form 1040-ES) | Tax year 2027 (computed, pending the 2027 Form 1040-ES) |
|---|---|---|
| 1st | April 15, 2026 | April 15, 2027 |
| 2nd | June 15, 2026 | June 15, 2027 |
| 3rd | September 15, 2026 | September 15, 2027 |
| 4th | January 15, 2027 | January 18, 2028 |
The 2027 dates are not official yet. We computed them from the statutory schedule in IRC §6654(c)(2) and the weekend and holiday rule in IRC §7503. January 15, 2028 is a Saturday, and Monday, January 17, 2028 is Martin Luther King Jr. Day, so the fourth 2027 payment should fall on Tuesday, January 18, 2028. Check these against the 2027 Form 1040-ES when the IRS releases it.
Two useful details from the 2026 Form 1040-ES:
- You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the entire balance due with it.
- Mailed payments count on the postmark date. The form notes that the postmark is the date the payment is processed at a postal facility, which may be later than the day you drop it off. Paying online avoids that question.
Want the dates in your calendar? Our 2026–2027 tax deadlines calendar has an .ics download.
How do you calculate self-employment tax?
Self-employment (SE) tax is Social Security and Medicare for people who work for themselves. It is often the biggest part of a freelancer's bill, and it applies even when your income tax is small. The 2026 rules:
- Net earnings from self-employment = net profit × 92.35% (IRC §1402(a)(12)). If this is under $400, there is no SE tax.
- Social Security part = 12.4% of net earnings, up to the 2026 Social Security wage base of $184,500. If you also have W-2 wages, those use up the wage base first.
- Medicare part = 2.9% of all net earnings. There is no cap.
- Together that is the familiar 15.3% rate (IRC §1401).
- Additional Medicare Tax of 0.9% applies to wages plus SE earnings above $200,000 ($250,000 married filing jointly, $125,000 married filing separately).
- You then deduct half of your SE tax when you figure adjusted gross income (AGI). This lowers your income tax, not your SE tax.
Here is the math for a freelancer with $85,000 of profit, and for one with $200,000, whose earnings pass the wage base:
| Step | $85,000 profit | $200,000 profit |
|---|---|---|
| Net earnings (profit × 92.35%) | $78,497.50 | $184,700.00 |
| Social Security: 12.4% × net earnings, capped at $184,500 | $9,733.69 | $22,878.00 (12.4% × $184,500) |
| Medicare: 2.9% × all net earnings | $2,276.43 | $5,356.30 |
| SE tax | $12,010.12 | $28,234.30 |
| Half-SE deduction | $6,005.06 | $14,117.15 |
In the second column only $184,500 of the $184,700 is subject to the 12.4% Social Security tax. Medicare applies to all of it.
How do you turn a tax estimate into four payments?
Once you know your SE tax, the rest follows the normal Form 1040 steps. Here is the full 2026 estimate for a single freelancer with $85,000 of profit, no other income and the standard deduction. The calculator produced these figures, and we show the arithmetic.
| Line | Calculation | Amount |
|---|---|---|
| Self-employment tax | from the table above | $12,010.12 |
| AGI | $85,000 − $6,005.06 half-SE deduction | $78,994.94 |
| Standard deduction (single) | 2026 amount | $16,100.00 |
| Taxable income before QBI | $78,994.94 − $16,100 | $62,894.94 |
| QBI deduction (simplified) | 20% × $78,994.94 = $15,798.99, limited to 20% × $62,894.94 | $12,578.99 |
| Taxable income | $62,894.94 − $12,578.99 | $50,315.95 |
| Income tax | 10% × $12,400 + 12% × $37,915.95 | $5,789.91 |
| Total 2026 tax | $5,789.91 + $12,010.12 | $17,800.03 |
Now apply the payment rules. Say this freelancer's 2025 return showed total tax of $15,000 and AGI of $70,000.
| Method | Annual target | Per quarter |
|---|---|---|
| Pay 100% of 2026 tax as you go | $17,800.03 | $4,450.01 |
| 90% of 2026 tax (current-year safe harbor) | $16,020.03 | $4,005.01 |
| 100% of 2025 tax (prior-year safe harbor) | $15,000.00 | $3,750.00 |
The required annual payment is the smaller of the two safe harbors, so $15,000, or $3,750 a quarter. If they pay exactly that, they would still owe about $2,800 when they file by April 15, 2027. The safe harbor generally protects you from the penalty. It does not reduce the tax itself.
The calculator also gives a set-aside rate: the extra federal tax caused by each dollar of business profit. For this freelancer it is about 20.9%. That is federal only. State income tax, where it applies, comes on top.
| Single filer, profit only, standard deduction | Estimated 2026 federal tax | Set aside per dollar of profit |
|---|---|---|
| $50,000 profit | $9,732.07 | about 19.5% |
| $85,000 profit | $17,800.03 | about 20.9% |
| $120,000 profit | $28,461.78 | about 23.7% |
| $200,000 profit | $53,430.61 | about 26.7% |
What is the estimated tax safe harbor, and when does 110% apply?
The safe harbor is the minimum you can pay during the year and still generally avoid the underpayment penalty. It is the smaller of:
- 90% of your 2026 tax, or
- 100% of your 2025 tax, or 110% if your 2025 AGI was more than $150,000 (more than $75,000 if you file married filing separately for 2026).
A few precise points from IRC §6654(d) and the 2026 Form 1040-ES:
- The AGI test uses your prior-year (2025) AGI, not this year's.
- The test is "more than". AGI of exactly $150,000 stays at 100%. At $150,001 it becomes 110%.
- The prior-year option works only if your 2025 return covered a full 12 months.
- If at least two-thirds of your gross income is from farming or fishing, different rules apply (66⅔% instead of 90%, and no 110% rule).
Here is how the threshold plays out for a single freelancer with $180,000 of 2026 profit and $30,000 of 2025 tax:
| 2025 AGI | Prior-year % | Required annual payment | Per quarter |
|---|---|---|---|
| $150,000 (not "more than") | 100% | $30,000 | $7,500 |
| $150,001 | 110% | $33,000 | $8,250 |
The same freelancer's 2026 tax is about $47,058, so 90% of it would be $42,353. The prior-year target is lower in both cases. That is why the prior-year method is often the easier target when your income is growing. We compare the two in depth in Estimated Tax Safe Harbor: 100% vs 110% Rule.
What should you do if you're behind on 2026 payments?
As of today (September 23, 2026), three of the four 2026 due dates have passed. Take the $85,000 freelancer from above. The target was $3,750 by each date, so $11,250 by September 15. If they had paid only $5,000 so far:
| Item | Amount |
|---|---|
| Should have paid by Sept. 15, 2026 (3 × $3,750) | $11,250 |
| Paid so far | $5,000 |
| Shortfall | $6,250 |
| Total to pay by Jan. 15, 2027 to reach $15,000 | $10,000 |
Options that generally help:
- Pay the shortfall now. The penalty runs day by day on each late installment, so paying sooner generally makes it smaller.
- Raise your W-2 withholding if you have a job. Under IRC §6654(g), withholding is generally treated as paid evenly on the four due dates, whatever the date it was actually withheld. Extra withholding late in the year can therefore cover earlier short quarters. Estimated payments count only from the day you make them.
- Consider the annualized income method if most of your income arrived late in the year (see the FAQ below).
How do you pay estimated taxes to the IRS?
The 2026 Form 1040-ES lists these methods, and the IRS Payments page links to each one:
| Method | Cost | Notes |
|---|---|---|
| IRS Online Account | Free | The 1040-ES says you can make estimated tax payments here and see your payment history |
| IRS Direct Pay | Free | Pay from a checking or savings account without signing in |
| Debit card, credit card or digital wallet | Processor fee | Through the providers listed on IRS.gov/Payments |
| Check or money order with a 1040-ES voucher | Postage | Payable to "United States Treasury"; write "2026 Form 1040-ES" and your SSN on it |
| EFTPS | Free | Individuals can no longer enroll (since Oct. 17, 2025) and existing individual users are being moved to Direct Pay or the Online Account during 2026, per EFTPS.gov |
Whichever method you use, choose estimated tax and tax year 2026 for the January 15, 2027 payment. A payment made in January 2027 but applied to 2027 won't count toward your 2026 installments.
What is the penalty for underpaying estimated tax?
If you pay too little, or pay late, the IRS may charge an underpayment penalty under IRC §6654. It works like interest:
- It is figured separately for each installment, on the amount that was short, for the number of days it stayed unpaid.
- The rate is the IRS underpayment rate, set every quarter. It is 7% a year for July 1 to September 30, 2026 and again for October 1 to December 31, 2026 (IR-2026-98).
- You figure it on Form 2210, or the IRS figures it and sends a bill.
As a rough, simplified illustration: $1,000 paid 90 days late at 7% works out to about $17 ($1,000 × 7% × 90 ÷ 365). The actual figure depends on the exact dates and the rate in each quarter.
The IRS may waive the penalty if a casualty, disaster or other unusual circumstance made it inequitable, or if you retired after reaching age 62 or became disabled and the underpayment was due to reasonable cause, not willful neglect (IRS Topic 306; IRC §6654(e)(3)). A waiver is not automatic. The Form 2210 instructions explain how to request one.
Do states have their own estimated tax rules?
Yes, in many cases. Most states with a personal income tax have their own estimated payment rules, thresholds and due dates, and these can differ from the federal ones. Some states have no personal income tax at all. Our calculator covers federal tax only. Once you have your federal number, check your state tax agency's estimated tax instructions, or ask us to work out both.
When does it make sense to get help?
Estimated taxes are only as good as the profit figure behind them. If your books are months behind, the estimate is a guess. That's no reflection on you: running a business leaves little time for bookkeeping.
RAHA's Bookkeeping + Quarterly Estimates Done For You service keeps your books current each month and works out your federal (and state, where applicable) estimated payments every quarter, with reminders before each due date. It is a fixed price, quoted upfront. For context, RAHA's published bookkeeping plans start from $79/mo (Personal) and $149/mo (Standard); see pricing. You can also book a free consultation.
Frequently asked questions
Do I have to pay quarterly taxes in my first year of freelancing?
It depends on last year. If your 2025 total tax was zero (or you didn't have to file), 2025 was a full 12-month year and you were a US citizen or resident all year, you don't have to pay 2026 estimated tax. You'll still owe the tax when you file. If you had a W-2 job in 2025 and owed tax, paying 100% of that 2025 tax during 2026 is often the easiest safe harbor. See First Year Freelancing: How to Handle Estimated Taxes.
Can I pay all my 2026 estimated tax at once?
Yes. The 2026 Form 1040-ES says you can pay all of it by April 15, 2026, or in four equal amounts. You can also make more than four payments, as long as the total paid by each due date is at least what was required by that date.
Do I need to make the January 15, 2027 payment?
Not if you file your 2026 return by February 1, 2027 and pay the entire balance due with it. Otherwise the fourth installment is due January 15, 2027.
My income is uneven. Do I still have to pay four equal amounts?
Equal installments are the default. If your income arrives unevenly, for example a seasonal business or a big contract late in the year, the annualized income installment method (Form 2210, Schedule AI) may lower or remove the required payment for earlier periods. The 1040-ES also points to this method if a large change after March 31 means you need to start paying. Our calculator assumes equal installments.
Does paying the safe harbor mean I won't owe anything in April?
No. The safe harbor generally protects you from the underpayment penalty. If your income grew, you can still owe a balance with your return. In our $85,000 example, the freelancer who pays exactly the $15,000 safe harbor would still owe about $2,800 by April 15, 2027.
Does First Time Abate remove the estimated tax penalty?
Generally no. The IRS administrative penalty relief page describes First Time Abate for failure-to-file, failure-to-pay and failure-to-deposit penalties. The estimated tax penalty has its own waiver rules on Form 2210, described above.
What if I overpaid last year and applied it to 2026?
An overpayment you chose to credit to 2026 counts as an estimated payment. The 1040-ES reminds you to take it into account and not to include it in the voucher amount you mail.
Sources
- IRS, 2026 Form 1040-ES, Estimated Tax for Individuals: https://www.irs.gov/pub/irs-pdf/f1040es.pdf
- IRC §6654, failure by individual to pay estimated income tax: https://www.law.cornell.edu/uscode/text/26/6654
- IRC §7503, time for performance when the last day falls on a weekend or holiday: https://www.law.cornell.edu/uscode/text/26/7503
- IRC §1401, rate of self-employment tax: https://www.law.cornell.edu/uscode/text/26/1401
- IRC §1402, definitions (92.35% factor, $400 minimum): https://www.law.cornell.edu/uscode/text/26/1402
- IRC §199A, qualified business income deduction: https://www.law.cornell.edu/uscode/text/26/199A
- SSA, contribution and benefit base: https://www.ssa.gov/oact/cola/cbb.html
- IRS, Rev. Proc. 2025-32 (2026 brackets and standard deduction): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- IRS, interest rates for the fourth quarter of 2026 (IR-2026-98): https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-fourth-quarter-of-2026
- IRS, About Form 2210: https://www.irs.gov/forms-pubs/about-form-2210
- IRS, Topic no. 306, Penalty for underpayment of estimated tax: https://www.irs.gov/taxtopics/tc306
- IRS, Publication 505 (2026), Tax Withholding and Estimated Tax: https://www.irs.gov/publications/p505
- IRS, Payments: https://www.irs.gov/payments
- IRS, Direct Pay with bank account: https://www.irs.gov/payments/direct-pay
- IRS, Online account for individuals: https://www.irs.gov/payments/online-account-for-individuals
- EFTPS (U.S. Department of the Treasury): https://www.eftps.gov/eftps/
- IRS, Administrative penalty relief: https://www.irs.gov/payments/administrative-penalty-relief
This guide provides general information for educational purposes and is not tax, legal or accounting advice. Consult a qualified professional before acting.
