Quarterly Estimated Tax Calculator
Estimate how much you owe each quarter on self-employment, freelance, or 1099 income — covering both income tax and self-employment tax.
Your Estimated Tax
Annual Breakdown
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Payment Schedule
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Why Estimated Taxes Exist
The US tax system is pay-as-you-go. Employees have tax withheld from every paycheck. When you are self-employed, no one withholds for you — so the IRS expects you to send in payments four times a year.
If you owe $1,000 or more for the year after withholding and credits, you generally must make estimated payments. Miss them, and you can face an underpayment penalty even if you pay everything in full by the April filing deadline.
How the Estimate Is Built
- Self-employment tax. 15.3% on 92.35% of your net self-employment income — 12.4% Social Security (up to the wage base) plus 2.9% Medicare.
- Deduct half of SE tax. You get an above-the-line deduction for half the SE tax, which reduces your income tax.
- Income tax. Apply the 2026 brackets to your taxable income after the standard deduction.
- Subtract credits and withholding. Whatever remains is what you still owe.
- Divide by four. That is your quarterly payment.
Two Ways to Stay Safe
- Actual method — pay 90% of this year's expected tax across the four installments. Best if your income is falling or steady.
- Safe harbor — pay 100% of last year's total tax (110% if your prior-year AGI exceeded $150,000). This protects you from penalties even if this year's income jumps, and is often the simpler choice.
How to Pay
The IRS offers several free or low-cost options: IRS Direct Pay from a bank account, the Electronic Federal Tax Payment System (EFTPS), debit or credit card (with a processing fee), or mailing a check with Form 1040-ES. Set a calendar reminder for each due date — the penalty accrues quietly.
Reduce Your Quarterly Bill Legally
- Track every business expense. Mileage, home office, software, and supplies all reduce net profit — and therefore both income tax and SE tax.
- Contribute to a SEP-IRA or Solo 401(k). These reduce income tax (though not SE tax).
- Use the annualized method if your income is seasonal — Form 2210 Schedule AI lets you match payments to when you actually earned the money.
- Increase W-2 withholding if you also have a job; it is treated as paid evenly through the year and can cover a shortfall.
The Bottom Line
Estimated taxes are the price of being your own employer. Estimate your total liability, divide by four, and put the dates in your calendar. Paying on time — even imperfectly — is far cheaper than the penalty for paying late.
Frequently Asked Questions
Who has to pay quarterly estimated taxes?
Generally, you must pay estimated tax if you expect to owe $1,000 or more in federal tax for the year after subtracting withholding and credits. This most often applies to self-employed workers, freelancers, gig workers, and anyone with significant income that has no tax withheld.
When are quarterly estimated tax payments due?
For the calendar year, the four due dates are generally April 15, June 15, September 15, and January 15 of the following year. If a due date falls on a weekend or holiday, it moves to the next business day.
How is the quarterly payment calculated?
First estimate your total tax for the year — income tax plus self-employment tax. Then subtract any tax already withheld from paychecks and any credits. The remainder is divided into four equal payments. You can also use the safe-harbor method: pay 100% of last year's tax (110% if your AGI was over $150,000) in four installments.
What happens if I do not pay estimated taxes?
You may owe an underpayment penalty, which is essentially interest on the tax you should have paid earlier. The penalty applies even if you file on time and pay the full balance in April — the issue is the timing of the payments, not the final amount.
Can I avoid the penalty if my income is uneven?
Yes. If your income arrives unevenly during the year, you can use the annualized income installment method (Form 2210, Schedule AI) to match payments to when the income was actually earned. This can reduce or eliminate the penalty for seasonal businesses.
Does my W-2 withholding count toward my quarterly obligation?
Yes. Tax withheld from a salary or pension is treated as if it were paid evenly throughout the year, so it counts against your total obligation. If your withholding already covers most of your liability, your remaining quarterly payments will be smaller.
Last updated: September 2026 · Reviewed by ScholarPay editorial team · General information only — not tax or financial advice.