Who has to pay estimated taxes
If taxes are not withheld from your income, as with freelance, contract, rental or investment income, the IRS expects you to pay during the year. You generally must make estimated payments if you expect to owe $1,000 or more for the year after subtracting withholding and refundable credits, and your withholding and credits will be less than the smaller of 90% of this year’s tax or 100% of last year’s tax. Missing the schedule triggers an underpayment penalty calculated as interest on the shortfall for each quarter.
2026 and 2027 due dates
| Payment | Income earned | 2026 due date | 2027 due date |
|---|---|---|---|
| Q1 | Jan 1 – Mar 31 | Wednesday, April 15, 2026 | Thursday, April 15, 2027 |
| Q2 | Apr 1 – May 31 | Monday, June 15, 2026 | Tuesday, June 15, 2027 |
| Q3 | Jun 1 – Aug 31 | Tuesday, September 15, 2026 | Wednesday, September 15, 2027 |
| Q4 | Sep 1 – Dec 31 | Friday, January 15, 2027 | Tuesday, January 18, 2028 |
When a due date falls on a weekend or legal holiday, it moves to the next business day. That is why the fourth 2027 payment is due on January 18, 2028.
The safe harbor rules in plain English
You will not owe an underpayment penalty if you pay in the lesser of:
- 90% of your tax for the current year, or
- 100% of the tax shown on last year’s return (110% if last year’s adjusted gross income exceeded $150,000, or $75,000 if married filing separately).
The second rule is helpful when income jumps: you can base payments on last year’s tax and settle the rest in April. The calculator shows both numbers and picks the smaller. For example, a freelancer with an expected total tax of $16,647 on $80,000 of profit would need to pay in at least $14,983 (90%) for the current-year safe harbor, or about $3,746 each quarter.
How to use the results
- Pay the safe-harbor amount if your goal is penalty protection. You will settle any balance when you file.
- Pay your full estimated tax if you would rather not owe anything in April. The calculator shows that figure too.
- If income is uneven, use the annualized income installment method with Form 2210 to lower early payments.
- Do not forget your state. Most states with an income tax require separate quarterly payments, with due dates that are sometimes different from the federal ones.
Our full quarterly estimated taxes guide walks through payment methods, penalties and what to do if you missed a quarter. Not sure how much of your profit is tax? Start with the self-employment tax calculator.
How the quarterly amount is estimated
The calculator starts with your expected net profit and other income, calculates self-employment tax and federal income tax for the year (including the half-SE-tax deduction and the QBI deduction), subtracts withholding from any W-2 job and credits, and then applies the safe harbor rules. If you enter last year’s total tax, it also shows the prior-year safe harbor and uses whichever required amount is smaller. The quarterly figure is that amount divided by four, with a second figure showing the payment that would cover your full expected tax so that nothing is owed in April.
A practical routine
- Estimate in January, using last year’s results as a baseline, and calculate four equal payments.
- Re-run the calculator after each quarter with your actual year-to-date profit. If income is higher than expected, increase later payments.
- Pay on time. Put the due dates in your calendar and move the money into a separate account in advance.
- Record each payment and its confirmation number, since you will report the total on your tax return.
The calculator uses 2026 tax parameters for both years. The IRS has not yet released its 2027 inflation adjustments, so 2027 estimates are only a guide, and the figures will be updated when official numbers are published. For the full rules, read the quarterly estimated taxes guide.