Quarterly Estimated Taxes: Who Pays, When, and How Much

When you work for an employer, taxes come out of every paycheck. When you work for yourself, nobody withholds anything. The IRS expects you to pay as you earn, through estimated tax payments.

Who needs to pay

According to the IRS, you generally need to make estimated tax payments if you expect to owe $1,000 or more in tax for the year after subtracting any withholding and credits. This often applies to freelancers, gig workers, small business owners, and people with significant interest, dividends, rent, or capital gains.

What the payments cover

They cover your income tax and your self-employment tax. The self-employment tax rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare. It applies when your net self-employment earnings are $400 or more. For 2026, the Social Security part applies to the first $184,500 of combined wages, tips, and net earnings. See taxes for rideshare and delivery drivers for an example.

Due dates

Estimated payments are due four times a year. For tax year 2026, the dates are:

Period	Due date
January 1 to March 31	April 15, 2026
April 1 to May 31	June 15, 2026
June 1 to August 31	September 15, 2026
September 1 to December 31	January 15, 2027

When a due date falls on a weekend or legal holiday, the deadline moves to the next business day. Many states also require their own estimated payments.

How much to pay

The IRS “safe harbor” rules help you avoid an underpayment penalty. In general, you can avoid it by paying at least the smaller of:

90% of the tax shown on this year’s return, or
100% of the tax shown on last year’s return. This rises to 110% if your adjusted gross income for last year was more than $150,000.

If your income is uneven, you can also calculate each payment separately. Ask a tax professional about this method.

How to pay

You can pay through your IRS online account, IRS Direct Pay, or EFTPS, or by mailing a payment with a Form 1040-ES voucher. Keep a record of every payment. Your return needs the dates and amounts.

A practical habit

Move a set share of every payment you receive into a separate savings account. When a due date arrives, the cash is there. See profit is not cash.

Want help figuring out your payments? Book a call with FlowTex.

Sources

This article is general information, not tax advice. Rules and amounts change each year, and state rules differ. Talk to a qualified professional about your situation.