How to Calculate and Pay Quarterly Estimated Taxes (2026)

Last updated: May 27, 2026 · Reading time: 8 minutes

Who has to pay quarterly

Anyone whose taxes aren't fully withheld by an employer and who expects to owe $1,000+ for the year: freelancers, contractors, sole proprietors, single-member LLCs, partners, and S-corp shareholders on the distribution portion. If you also have a W-2 job, extra withholding there can sometimes cover it instead.

The 2026 due dates

If a due date lands on a weekend or holiday, it shifts to the next business day. Confirm exact dates each year at IRS.gov.

Method 1: The safe-harbor shortcut (easiest)

You avoid an underpayment penalty if you pay the smaller of:

• 90% of this year's total tax, OR
• 100% of last year's total tax (110% if your prior-year AGI was over $150,000)

So the no-math approach: take last year's total tax bill, divide by 4, and pay that each quarter. Even if you earn more this year and owe more at filing, you won't face a penalty — you just settle the difference in April.

Method 2: Calculate from actual income (more accurate)

Each quarter, run these steps on your year-to-date numbers:

1. Net profit = income − deductible expenses for the period.
2. SE-tax base = net profit × 92.35%.
3. Self-employment tax = SE-tax base × 15.3%.
4. Income tax = (net profit − half of SE tax − deductions) × your bracket.
5. Total = SE tax + income tax, minus anything already paid this year. Divide by remaining quarters.

This is more accurate for businesses with uneven income — a great Q2 and a slow Q4 — because you pay based on what you actually earned.

How to actually pay

• IRS Direct Pay — free bank transfer at irs.gov/payments. Easiest for most people.
• EFTPS — the Electronic Federal Tax Payment System; good if you want scheduled payments.
• Form 1040-ES — paper vouchers if you mail a check.
• Don't forget your state — most income-tax states have their own quarterly estimates and portals.

What happens if you skip or underpay

The IRS charges an underpayment penalty, calculated like interest on the shortfall for each quarter you were short. It's not huge on small amounts, but it's avoidable money. The safe-harbor method exists specifically so you can sidestep the penalty without predicting your income perfectly.

The painless system

1. Move 30% of every payment into a tax savings account as it arrives.
2. Each quarter, pay either the safe-harbor amount or your calculated amount via IRS Direct Pay.
3. Keep your books current so the net-profit number you're calculating from is real, not a guess.

Frequently asked questions

When are quarterly estimated taxes due in 2026?

April 15, June 15, September 15, and January 15 (of the following year). If a date falls on a weekend or holiday, it moves to the next business day.

How do I avoid an underpayment penalty?

Use the safe harbor: pay either 90% of this year's tax or 100% of last year's tax (110% if prior-year AGI exceeded $150,000), spread across the four quarters. Meet that and you won't owe a penalty even if you under-estimate.

What if my income is uneven through the year?

Calculate each quarter from your actual year-to-date income rather than paying four equal amounts. The IRS allows this "annualized income" approach, which lowers payments in slow quarters and raises them in strong ones.

Do I pay state estimated taxes too?

If your state has an income tax, usually yes — most have their own quarterly estimated payments and online portals. Check your state's department of revenue.

This article is general educational information, not tax, legal, or accounting advice. Tax rates, limits, and thresholds change every year and sometimes mid-year — verify all current figures at IRS.gov and consult a licensed CPA or enrolled agent for your specific situation.