What Is Quarterly Estimated Tax? Deadlines & How to Pay

Quarterly estimated tax is tax you pay during the year on income that has no tax withheld from it, such as self-employment income, instead of paying it all when you file your return. In the US, the IRS splits the year into four payment periods with set due dates, and you may owe a penalty if you don't pay enough by each one. The 2026 rules below are quoted from the IRS. This page explains how they work; it isn't tax advice, so ask your accountant or a tax professional what applies to you.

What estimated tax is (US)

The 2026 Form 1040-ES (opened October 30, 2026) says: "Use Form 1040-ES to figure and pay your estimated tax for 2026. Estimated tax is the method used to pay tax on income that isn’t subject to withholding". The IRS estimated taxes page ("Page Last Reviewed or Updated: 25-Sep-2026") says: "Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments."

Estimated tax can cover self-employment tax as well as income tax; see what is self-employment tax.

Who must pay (US, 2026)

Form 1040-ES (2026) gives the general rule: "In most cases, you must pay estimated tax for 2026 if both of the following apply."

1. "You expect to owe at least $1,000 in tax for 2026, after subtracting your withholding and refundable credits."
2. "You expect your withholding and refundable credits to be less than the smaller of: a. 90% of the tax to be shown on your 2026 tax return, or b. 100% of the tax shown on your 2025 tax return."

It adds: "Your 2025 tax return must cover all 12 months."

Exception: "You don’t have to pay estimated tax for 2026 if you were a U.S. citizen or resident alien for all of 2025 and you had no tax liability for the full 12-month 2025 tax year."

Higher income taxpayers: "If your adjusted gross income (AGI) for 2025 was more than $150,000 ($75,000 if your filing status for 2026 is married filing separately), substitute 110% for 100% in (2b) under General Rule, earlier."

Special rules also apply to income from farming or fishing and to some household employers; see the form.

The 2026 due dates

Form 1040-ES (2026) says: "You can pay all of your estimated tax by April 15, 2026, or in four equal amounts by the dates shown below." The dates it lists are:

• 1st payment: April 15, 2026
• 2nd payment: June 15, 2026
• 3rd payment: Sept. 15, 2026
• 4th payment: Jan. 15, 2027

It notes: "You don’t have to make the payment due January 15, 2027, if you file your 2026 tax return by February 1, 2027, and pay the entire balance due with your return."

Paying too little and the penalty

The IRS estimated taxes page says: "If you don’t pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return."

IRS Publication 505 (2026), Tax Withholding and Estimated Tax includes a worksheet line for the "Required annual payment to avoid a penalty. Enter the smaller of line 12a or 12b", and adds: "Generally, if you don’t prepay (through income tax withholding and estimated tax payments) at least the amount on line 12c, you may owe a penalty for not paying enough estimated tax."

How to work out and pay it

Form 1040-ES lists what you need to figure the amount, starting with "The 2026 Estimated Tax Worksheet". To pay, the IRS estimated taxes page says: "You may send estimated tax payments with Form 1040-ES by mail, or you can pay online, by phone or from your mobile device using the IRS app."

If you also have a job, Form 1040-ES says: "If you also receive salaries and wages, you may be able to avoid having to make estimated tax payments on your other income by asking your employer to take more tax out of your earnings."

Sample: four equal 2026 payments

This is a sample with invented figures; it isn't a calculation of what you owe. A freelancer has no tax withholding. The total tax on their 2025 return was $8,000.00, their 2025 AGI was $90,000.00 (not more than $150,000, so the 100% figure applies), and they expect $12,000.00 of tax for 2026.

• 90% of the expected 2026 tax: 90% × $12,000.00 = $10,800.00
• 100% of the tax shown on the 2025 return: 100% × $8,000.00 = $8,000.00
• The smaller of the two: $8,000.00
• In four equal amounts: $8,000.00 ÷ 4 = $2,000.00 each, by April 15, June 15 and Sept. 15, 2026, and Jan. 15, 2027

The expected 2026 tax is $12,000.00, so $12,000.00 − $8,000.00 = $4,000.00 of it isn't prepaid by these four payments. The Form 1040-ES worksheet figures the actual amounts; ask your accountant what applies to you.

Where Billed fits

Billed's expense tracking page says: "Give every expense a category so your spending is already sorted when you file taxes or hand the year to your accountant." Its financial reporting page says: "See how profitable your business is with Income vs Expense report."

Related Articles

• What Is Self-Employment Tax?
• What Is Payroll Tax?
• What Is a W-4 Form?
• Freelance Taxes: U.S. Essentials for Self-Employed Workers
• How to Manage Freelance Finances

Frequently Asked Questions

Who has to pay quarterly estimated tax?

In the US, Form 1040-ES (2026) says: "In most cases, you must pay estimated tax for 2026 if both of the following apply." The form lists them: "1. You expect to owe at least $1,000 in tax for 2026, after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable credits to be less than the smaller of: a. 90% of the tax to be shown on your 2026 tax return, or b. 100% of the tax shown on your 2025 tax return." Ask your accountant what applies to you.

When are the 2026 estimated tax payments due?

Form 1040-ES (2026) lists April 15, 2026, June 15, 2026, Sept. 15, 2026 and Jan. 15, 2027. It also says: "You don't have to make the payment due January 15, 2027, if you file your 2026 tax return by February 1, 2027, and pay the entire balance due with your return."

What is the 110% rule?

Form 1040-ES (2026) says: "If your adjusted gross income (AGI) for 2025 was more than $150,000 ($75,000 if your filing status for 2026 is married filing separately), substitute 110% for 100% in (2b) under General Rule, earlier."

What happens if I pay too little estimated tax?

The IRS estimated taxes page says: "If you don’t pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return." In the sample on this page, the smaller of the two amounts is $8,000.00, paid as four $2,000.00 payments.