Quarterly estimated taxes for the self-employed

When you have a job, your employer takes tax out of every paycheck and sends it to the IRS. When you work for yourself, nobody does that for you. So the IRS asks you to send tax yourself, four times a year. These payments are called quarterly estimated taxes.

They cover your income tax and your self-employment tax (Social Security and Medicare for people who work for themselves). If you pay too little or too late, the IRS can charge a penalty, even if you pay everything by April.

Do I have to pay?

Most self-employed people do. You generally must pay estimated tax if you expect to owe $1,000 or more for the year after taking away any tax withheld from a paycheck (2026 Form 1040-ES).

There is one big exception. You do not have to pay estimated tax for 2026 if you owed no tax for 2025, were a US citizen or resident all year, and your 2025 return covered a full 12 months (Publication 505). This often helps in your first year in business (see our first-year self-employed checklist). You still owe the tax when you file. You just cannot get a penalty for not paying during the year.

The four due dates for 2026

The periods are not equal. The second one is only two months long, so the June payment comes fast (IRS). If a due date falls on a weekend or holiday, it moves to the next business day.

Our free estimated tax due dates page shows the next date and can add all of them to your calendar.

How much to pay

The simplest way: take the total tax from last year’s return and divide it by four. Pay that amount on each due date. If you do, you owe no penalty, even if this year’s tax turns out higher. This is called the safe harbor.

Two details:

• If your adjusted gross income (AGI) last year was over $150,000 ($75,000 if married filing separately), use 110% of last year’s tax, not 100%.
• If you expect to earn less this year, you can pay 90% of this year’s expected tax instead. This only works if your guess is good.

An example

Leo is a wedding photographer. (He is an example, not a real person.) His 2025 return showed total tax of $9,600. He has no job, so nothing is withheld.

• $9,600 ÷ 4 = $2,400 on each due date.

His business grows, and his 2026 tax comes to $14,000. Because he paid $9,600 on time, he owes no penalty. He still owes the other $4,400 when he files in April 2027. So he keeps setting money aside, and treats $2,400 as the minimum he sends.

If your income comes in a lump, like Leo’s summer weddings, Publication 505 has a method (the annualized income method) that can lower your early payments.

How to pay

The free ways to pay are your IRS Online Account and IRS Direct Pay, both from a bank account. You can also pay by card for a fee, or mail a check with a voucher from Form 1040-ES (Form 1040-ES).

When you pay, choose “estimated tax” and the tax year 2026. That includes the payment you make in January 2027. If you mail a check, mail it early, or pay online. See how to pay estimated taxes online for each step.

If you also have a job

If you have a W-2 job and a side business, you can ask your employer to take out more tax with a new Form W-4. This can be easier than estimated payments. Tax withheld from pay also counts as if it was paid evenly through the year, so extra withholding late in the year can cover earlier quarters (Instructions for Form 2210).

Good to know

• You can change the amount of each payment if your income changes.
• If you miss a payment, pay as soon as you can. The penalty grows each day a payment is late.
• You can apply last year’s refund to this year’s estimated tax (Publication 505).
• States have their own estimated tax rules. Check your state tax agency.

Keep track of your profit

The hard part is not the form. It is knowing how your year is going. Righto keeps your profit up to date, reminds you of each federal due date and can add the dates to your calendar. You can also ask your own AI agent, such as Claude Code, for your profit so far this year. See how agents work with Righto.

What to do now

1. Find last year’s return and note the total tax.
2. Multiply it by 100%, or 110% if your AGI was over $150,000.
3. Take away any tax you expect to have withheld this year.
4. Divide by four. That is your payment for each date.
5. Put January 15, 2027 in your calendar, with a reminder a week before. See the other small business tax deadlines.

Righto is free, easy to use and needs no account.

Sources

• 2026 Form 1040-ES, Estimated Tax for Individuals, IRS
• Publication 505 (2026), Tax Withholding and Estimated Tax, IRS
• Instructions for Form 2210 (2025), IRS
• Underpayment of estimated tax by individuals penalty, IRS
• Online account for individuals, IRS
• Direct Pay with bank account, IRS