By Blim · Last updated: October 7, 2026 · Sources: IRS.gov
The short answer: if you’re self-employed and expect to owe $1,000 or more in federal tax for the year, the IRS expects you to pay during the year in four installments called quarterly estimated taxes. For the 2026 tax year, the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. You can pay online in a few minutes through IRS Direct Pay or your IRS Online Account. Paying at least 100% of last year’s tax generally protects you from penalties.
This guide covers who has to pay, the exact deadlines, how to figure the amount, and how to pay step by step. For the bigger picture, see how to pay taxes as a freelancer.
What are quarterly estimated taxes?
The US tax system is “pay as you go”: tax is supposed to be paid as you earn income, either through withholding or through estimated tax payments (IRS). Employees have tax withheld from every paycheck. Freelancers and contractors don’t, so they send estimated payments themselves.
Your estimated payments cover both your federal income tax and your self-employment tax, the 15.3% Social Security and Medicare tax for people who work for themselves.
Who has to pay estimated taxes?
You generally need to make estimated payments if you expect to owe $1,000 or more when you file your return, after subtracting any withholding and credits (IRS). That usually includes:
- Freelancers, independent contractors and gig workers
- Sole proprietors and single-member LLC owners
- People with a side business whose W-2 withholding doesn’t cover the extra tax
You don’t have to pay estimated tax this year if you meet all three of these conditions (IRS):
- You had no tax liability for the prior year.
- You were a US citizen or resident alien for the whole year.
- Your prior tax year covered a full 12 months.
Have a W-2 job too? Instead of making estimated payments, you can ask your employer to withhold more by filing a new Form W-4. There’s a line for an extra amount to withhold each pay period (IRS).
2026 quarterly estimated tax due dates
The periods aren’t equal: the second one covers only two months, and the last one covers four (IRS).
| Payment | Income earned | Due date (tax year 2026) |
|---|---|---|
| 1st | January 1 – March 31 | April 15, 2026 |
| 2nd | April 1 – May 31 | June 15, 2026 |
| 3rd | June 1 – August 31 | September 15, 2026 |
| 4th | September 1 – December 31 | January 15, 2027 |
If a due date falls on a Saturday, Sunday or legal holiday, your payment is on time if you make it the next business day. If you mail a check, the postmark date counts as the payment date.
Skipping the January payment: under an exception explained in Publication 505, you generally don’t need to make the January 15 payment if you file your 2026 return by the end of January 2027 and pay the full balance due with it. Check the exact date in Pub. 505 before relying on it.
How much should each payment be?
There are two ways to decide. Most freelancers use the first one.
1. The safe harbor method (easiest). You generally avoid the underpayment penalty if your withholding and estimated payments add up to at least the smaller of (IRS):
- 90% of your tax for this year, or
- 100% of the total tax on last year’s return.
Higher earners have a stricter version: if your adjusted gross income last year was more than $150,000 ($75,000 if married filing separately), you need to pay 110% of last year’s tax instead of 100% (Publication 505).
The last-year rule is popular because you know the number in advance. Take the “total tax” line from last year’s Form 1040, divide by four, and pay that each quarter.
2. Estimate this year’s tax. Use the worksheet in Form 1040-ES to project your income, deductions, self-employment tax and credits for the year, then divide by four. This is more accurate if your income is dropping, but you’ll need to redo it if your income changes during the year.
Worked example
Sam is a freelance web developer.
- Total tax on Sam’s 2025 return: $9,000, with AGI under $150,000.
- Sam expects 2026 to be a better year, with total tax of about $14,000.
| Method | Required for the year | Each quarterly payment |
|---|---|---|
| 100% of last year’s tax | $9,000 | $2,250 |
| 90% of this year’s tax | $12,600 | $3,150 |
Sam can pay $2,250 each quarter and avoid the penalty, because that’s the smaller safe-harbor amount. But Sam will still owe the remaining $5,000 ($14,000 − $9,000) when filing in April 2027. The smart move is to pay the safe-harbor amount to the IRS and keep setting money aside for the balance.
What if your income is uneven?
The standard method assumes you earn the same amount each quarter. If most of your income arrives late in the year (a big project in November, a seasonal business), you can use the annualized income installment method. It lets you make smaller payments early and larger ones later, matched to when you actually earned the money. You figure it with the worksheet in Publication 505 and report it on Form 2210 when you file (IRS).
You can also pay more often than quarterly (monthly, or every time a client pays you), as long as enough has been paid by each due date.
How to pay quarterly estimated taxes (step by step)
The fastest way is online. You can pay through your IRS Online Account, IRS Direct Pay, EFTPS, by phone, or with the IRS2Go app (IRS).
Paying with IRS Direct Pay (free, from your bank account):
- Go to IRS Direct Pay and choose Make a Payment.
- For the reason for payment, choose Estimated Tax. Make sure the form is 1040-ES and pick the correct tax year (2026 for all four payments of this cycle, including the one due in January 2027).
- Verify your identity with information from a prior tax return: name, Social Security number or ITIN, address and filing status.
- Enter your bank routing and account numbers and the amount.
- Choose the payment date. You can schedule it in advance, up to the due date.
- Save the confirmation number. You’ll report the total of your estimated payments on your Form 1040.
Other ways to pay:
- IRS Online Account at IRS.gov/account: make payments and see your full payment history in one place.
- EFTPS: useful if you want to schedule payments months ahead. It requires enrollment first.
- Debit or credit card: available through IRS-approved processors, which charge a fee.
- Check by mail: send it with the payment voucher from Form 1040-ES. The postmark date counts.
Don’t forget your state. Most states with an income tax have their own estimated payment system and deadlines, separate from the IRS.
What happens if you pay late or not enough?
If you don’t pay enough by each due date, you may owe an underpayment penalty, even if you end up getting a refund when you file (IRS). It works like interest: it’s calculated on the amount you underpaid and for how long, so paying late is better than not paying at all.
You can avoid it by meeting a safe harbor (above), or by owing less than $1,000 after withholding and credits. The IRS may also waive it if the underpayment was due to a casualty, disaster or other unusual circumstance, or in some cases if you retired after age 62 or became disabled (IRS). Form 2210 is how it’s figured and how you request a waiver.
Common mistakes
- Waiting until April. You’ll owe a full year of tax at once, plus a penalty.
- Applying the payment to the wrong tax year. The January 2027 payment belongs to tax year 2026.
- Forgetting self-employment tax. Your estimate has to include the 15.3% self-employment tax, not just income tax.
- Paying the safe harbor and spending the rest. The safe harbor avoids the penalty, not the tax. Keep saving for the balance.
- Ignoring state estimated taxes. Your state may also expect quarterly payments.
FAQ
Do I have to pay estimated taxes in my first year as a freelancer? If you expect to owe $1,000 or more, generally yes. If you had no tax liability last year and were a US citizen or resident for the full year, you don’t have to pay estimated tax this year, though you’ll still owe the full amount when you file.
What if I miss a quarterly payment? Pay as soon as you can. The penalty grows with time, so a late payment costs less than no payment. Then make the next payment on time.
Can I pay all four payments at once? Yes. You can pay early or in larger amounts. What matters is that enough has been paid by each due date.
Are quarterly payments based on my income in that quarter? Not exactly. Under the regular method, you pay roughly a quarter of your expected annual tax each time. If your income is very uneven, the annualized method can match payments to when you earned the money.
I also have a W-2 job. Do I still need to pay quarterly? Not necessarily. You can raise the withholding at your job with a new Form W-4 to cover the tax on your freelance income instead.
Sources
- IRS — Estimated taxes
- IRS — When are quarterly estimated tax payments due?
- IRS — Publication 505 (2026), Tax Withholding and Estimated Tax
- IRS — About Form 1040-ES
- IRS — About Form 2210
- IRS — Direct Pay
This article provides general information for the 2026 tax year and is not tax, legal or financial advice. Tax rules change and your situation may differ. Consult a qualified tax professional before making decisions.