If you are self-employed, a freelancer or contractor, or you have significant income with no withholding (investments, rentals, a side business), the IRS expects you to pay tax as you earn it, not just at year-end. These are estimated quarterly tax payments.
Who needs to pay
Generally, anyone who expects to owe at least $1,000 in federal tax after withholding and credits.
2026 due dates
- Income earned January 1 to March 31: due April 15, 2026
- April 1 to May 31: due June 15, 2026
- June 1 to August 31: due September 15, 2026
- September 1 to December 31: due January 15, 2027
How much to pay
The simplest protection is the safe harbor rule: pay at least 100% of last year's total tax (110% if last year's AGI was over $150,000), split into four equal payments. That protects you from underpayment penalties even if you earn more this year.
How to pay
IRS Direct Pay lets you pay free from a bank account. You can also pay by card (a processing fee applies) or mail a check with Form 1040-ES.
If you don't pay
The IRS charges an underpayment penalty that works like interest, calculated daily. The rate is the federal short-term rate plus 3 percentage points, reset each quarter. It isn't catastrophic, but it is completely avoidable.
Pro tip: Move 25% to 30% of every self-employment payment into a separate savings account and pay your estimates from there. Whatever is left after you file is yours. This one habit removes the biggest source of tax stress for self-employed people.
General education only, not advice for your specific situation. Figures checked October 2026. Tax law changes, so confirm current figures at IRS.gov or ask us.