When are quarterly estimated tax payments due?

The four quarterly estimated tax deadlines for 2026 are April 15, June 16, September 15, and January 15, 2027. Note that these are not evenly spaced — the second quarter covers only two months (May–June) while the fourth quarter covers three. Missing a deadline results in an underpayment penalty calculated daily on the amount owed.

How do I calculate how much to pay each quarter?

The safest method is the safe harbor rule: pay at least 100% of last year's tax liability (110% if your AGI exceeded $150,000) in four equal installments. This protects you from underpayment penalties regardless of what you actually owe for the current year. Alternatively, estimate 90% of your current year liability based on actual year-to-date income and expenses.

What happens if I skip a quarterly estimated tax payment?

The IRS charges an underpayment penalty, currently calculated at the federal short-term rate plus 3 percentage points — approximately 7–8% annualized in 2026. The penalty applies per quarter based on when you were underpaid, not just on the annual shortfall. You still owe the tax; the penalty is an additional charge on top of the balance due.

Quarterly Estimated Taxes Guide for Self-Employed People

May 23, 2026

Who Needs to Make Quarterly Estimated Payments

If you expect to owe at least $1,000 in federal tax after withholding and credits, you are required to make quarterly estimated payments. This applies to:

Freelancers, consultants, and independent contractors
Self-employed business owners (sole proprietors, partners, S-corp shareholders)
Landlords with significant rental income
Investors with substantial dividend or capital gains income without withholding
Retirees with pension or IRA income not covered by withholding

The Two Methods for Calculating Payments

Method 1: Safe Harbor (Recommended)

Pay at least 100% of your prior year's total tax liability in four equal installments. If your AGI in the prior year exceeded $150,000, pay 110% of prior year tax. This method eliminates underpayment penalties even if you owe significantly more at year-end.

Example: Your 2025 total tax was $18,000. Under safe harbor, pay $4,500 per quarter in 2026 (or $4,950 if your 2025 AGI exceeded $150,000). Even if your 2026 tax bill turns out to be $30,000, you owe no underpayment penalty.

Method 2: Annualized Income Method

Calculate actual income through each quarter, annualize it, compute the tax on that annualized amount, and pay 90% of that quarterly. This method is more accurate but requires more calculation and should be done with your CPA. It benefits self-employed people with highly seasonal income — paying less in slow quarters and more in high-income quarters.

2026 Quarterly Deadlines

Q1 (January 1 – March 31): Due April 15, 2026
Q2 (April 1 – May 31): Due June 16, 2026
Q3 (June 1 – August 31): Due September 15, 2026
Q4 (September 1 – December 31): Due January 15, 2027

How to Make Payments

The IRS offers several payment options:

IRS Direct Pay: Free ACH payment from your bank account at irs.gov — no fee, confirms immediately
EFTPS (Electronic Federal Tax Payment System): Free, allows scheduling future payments, preferred by CPAs for business clients
IRS2Go app: Mobile payment option linked to Direct Pay
Credit card: Available through third-party processors at a fee of 1.75–1.99% — usually not worth the cost

State Estimated Taxes

Most states with income tax also require quarterly estimated payments on the same schedule (or a slightly different one — always verify your state's rules). Your CPA will calculate and schedule your state estimated payments alongside your federal payments.

Working With Your CPA on Estimated Taxes

A good CPA will calculate your safe harbor payments at the start of the year, set up calendar reminders for each deadline, and adjust mid-year if your income changes significantly. This is a standard service — if your CPA is not proactively managing this for you, ask about it. Find a CPA who handles quarterly planning by browsing our directory.

Frequently Asked Questions

When are quarterly estimated tax payments due?: The four quarterly estimated tax deadlines for 2026 are April 15, June 16, September 15, and January 15, 2027. Note that these are not evenly spaced — the second quarter covers only two months (May–June) while the fourth quarter covers three. Missing a deadline results in an underpayment penalty calculated daily on the amount owed.
How do I calculate how much to pay each quarter?: The safest method is the safe harbor rule: pay at least 100% of last year's tax liability (110% if your AGI exceeded $150,000) in four equal installments. This protects you from underpayment penalties regardless of what you actually owe for the current year. Alternatively, estimate 90% of your current year liability based on actual year-to-date income and expenses.
What happens if I skip a quarterly estimated tax payment?: The IRS charges an underpayment penalty, currently calculated at the federal short-term rate plus 3 percentage points — approximately 7–8% annualized in 2026. The penalty applies per quarter based on when you were underpaid, not just on the annual shortfall. You still owe the tax; the penalty is an additional charge on top of the balance due.