Quarterly Estimated Taxes: Due Dates, Rules, and How to Pay
If you are self-employed, a freelancer, investor, or have income without withholding, you likely need to pay estimated taxes four times a year. Missing payments or underpaying can trigger an IRS penalty even if you get a refund at filing.
2025 Quarterly Estimated Tax Due Dates
The IRS requires four estimated payments per year. Note that Q2 covers only two months while Q1, Q3, and Q4 each cover roughly three months.
2026 estimated tax due dates: April 15, 2026 (Q1) | June 15, 2026 (Q2) | September 15, 2026 (Q3) | January 15, 2027 (Q4). If you filed and paid your 2025 return in full by January 31, 2026, you may skip the Q4 2025 payment.
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Do You Need to Pay Quarterly Estimated Taxes?
You generally must pay quarterly estimated taxes if all three of the following apply.
| Condition | Details |
|---|---|
| You expect to owe at least $1,000 | Total federal tax after withholding and credits for the year will be $1,000 or more |
| Withholding is insufficient | Your withholding and credits cover less than 90% of your current year tax liability |
| Prior year test not met | Withholding and credits are also less than 100% of last year's tax (110% if prior year AGI exceeded $150,000) |
| Common situations requiring estimated payments | Why |
|---|---|
| Freelancers and independent contractors | No employer withholding on 1099 income |
| Sole proprietors and self-employed | Both SE tax and income tax not withheld |
| Investors with capital gains or dividends | Investment income has no automatic withholding |
| Retirees with pension or IRA income | Withholding may be insufficient or not elected |
| Side gig workers with a day job | W-2 withholding may not cover side income |
| Partners and S-Corp shareholders | Pass-through income not subject to payroll withholding |
The Safe Harbor Rule: How to Avoid Underpayment Penalties
You can avoid the IRS underpayment penalty by meeting either of two safe harbor thresholds. You do not need to predict your exact tax liability perfectly.
| Safe Harbor Method | Requirement | Best For |
|---|---|---|
| Prior year tax method | Pay 100% of last year's total tax in equal quarterly installments (110% if prior year AGI exceeded $150,000) | Unpredictable income, variable freelance earnings |
| Current year 90% method | Pay at least 90% of your actual current year tax liability across all four payments | Predictable income, lower tax year than prior year |
| Most freelancers use | Prior year method because it requires no estimation of current year income | Simplest approach if income varies |
The penalty still applies even if you get a refund. If you underpaid during the year, the IRS charges a small underpayment penalty on the amount underpaid for each quarter it was late, even if your total return results in a refund. Meeting a safe harbor threshold is the only way to avoid it.
Estimating Your Quarterly Payment Amount
The most common approach for freelancers and self-employed individuals is the prior year safe harbor method.
// Step 1 - Find last year's total tax
Prior Year Tax = Line 24 of your prior year Form 1040
// Step 2 - Apply the threshold
If prior year AGI was $150,000 or less:
Annual Target = Prior Year Tax x 100%
If prior year AGI exceeded $150,000:
Annual Target = Prior Year Tax x 110%
// Step 3 - Divide into quarterly payments
Each Payment = Annual Target / 4
// Example: Prior year tax was $12,000, AGI under $150,000
Annual target = $12,000 x 100% = $12,000
Each payment = $12,000 / 4 = $3,000 per quarter
Freelancer with $75,000 net profit estimating 2025 quarterly payments
Better approach if income grew significantly: If your income is much higher than last year, the prior year method may leave you with a large balance due at filing. In that case, estimate your current year SE tax and income tax, divide by four, and pay that amount quarterly instead.
How to Submit Quarterly Estimated Tax Payments
| Payment Method | How | Notes |
|---|---|---|
| IRS Direct Pay | Pay at irs.gov/payments directly from your bank account | Free, instant, no account needed |
| EFTPS | Electronic Federal Tax Payment System at eftps.gov | Free, requires enrollment, good for recurring payments |
| IRS2Go app | Mobile payment via Direct Pay or debit/credit card | Card payments carry a processing fee |
| Mail Form 1040-ES | Send check with the quarterly voucher to the IRS address for your state | Allow several days for delivery before the due date |
| Recommended | IRS Direct Pay for one-time payments or EFTPS for scheduled recurring payments | Both free and provide instant confirmation |
Pay online for instant confirmation. IRS Direct Pay at irs.gov/directpay is the fastest and simplest method. You select "Estimated Tax" as the payment type, enter your tax year, and pay from your bank account. You receive immediate confirmation with a tracking number. No account registration is required.
Do Not Forget State Estimated Tax Payments
Most states with an income tax also require quarterly estimated payments if you expect to owe state tax above a threshold. State rules and due dates often parallel the federal schedule but are not always identical.
| State Tax Situation | What to Do |
|---|---|
| No state income tax (TX, FL, WA, NV, WY, SD, AK, TN) | No state estimated payments required. Federal only. |
| State with income tax (CA, NY, IL, etc.) | Check your state's department of revenue for estimated payment thresholds and due dates. Most mirror federal due dates. |
| California (highest state tax, up to 13.3%) | CA requires 4 payments but on a different schedule: 30% due April 15, 40% due June 15, 0% September, 30% due January 15. |
| New York | Follows federal quarterly schedule. Use Form IT-2105 and pay via the NY Online Services portal. |
| General rule | If your state has income tax and you owe SE or investment income, assume you need state estimated payments too. Check your state DOR website. |
Self-employed in a high-tax state: For a freelancer in California with $100,000 net profit, estimated state tax payments can be $8,000–$10,000 per year on top of federal. Budget for both and make both sets of payments quarterly to avoid double penalties at filing time.
Frequently Asked Questions
Disclaimer: This page provides general estimated tax guidance for educational purposes based on IRS Form 1040-ES instructions. Individual situations vary based on income type, filing status, credits, and other factors. It is not tax, legal, or financial advice. Consult a qualified tax professional before making payment decisions.