How do quarterly estimated taxes work for the self-employed?
When you're self-employed, no employer withholds tax from your income. Instead, you must pay estimated taxes quarterly to avoid an underpayment penalty at tax time. **2026 estimated tax payment due dates (for 2026 income):** - April 15, 2026 (Q1: Jan–Mar income) - June 16, 2026 (Q2: Apr–May income) - September 15, 2026 (Q3: Jun–Aug income) - January 15, 2027 (Q4: Sep–Dec income) **Who must pay:** If you expect to owe at least $1,000 in total federal tax for the year after withholding and refundable credits, you should pay estimated taxes. **How much to pay:** Use Form 1040-ES worksheet to estimate — or use the Safe Harbor Rule to avoid penalties entirely (see related article). **How to pay:** IRS Direct Pay (free), EFTPS (Electronic Federal Tax Payment System), debit/credit card, or mailing a paper check with Form 1040-ES voucher. **Underpayment penalty:** If you don't pay enough during the year, the IRS charges a penalty calculated daily at the federal short-term rate + 3 percentage points.
- Pay quarterly: April 15, June 16, Sep 15, January 15
- Required when expected tax owed ≥ $1,000 for the year
- Covers both SE Tax and income tax in one payment
- Safe Harbor rule: pay 100% of prior year tax (110% if prior AGI > $150,000)
- Pay via IRS Direct Pay, EFTPS, or paper voucher