If you are a freelancer, independent contractor, or small business owner, the IRS operates on a "pay-as-you-go" system. This means you cannot wait until April to pay your tax bill. Instead, you are required to make quarterly estimated tax payments throughout the year.
Failing to make these payments—or underpaying them—will result in IRS penalties and interest. Here is everything you need to know to stay compliant in 2026.
Who Has to Pay Quarterly Taxes?
The rule is simple: If you expect to owe $1,000 or more in taxes for the year (after subtracting any withholding and refundable credits), you must make estimated tax payments.
Because the self-employment tax alone is 15.3%, almost anyone earning more than $6,500 a year in 1099 income will hit that $1,000 threshold and be required to file quarterly.
2026 Quarterly Tax Deadlines
The IRS divides the year into four payment periods. Note that these periods are not exactly three months long. For 2026, the deadlines are:
- Q1 (Jan 1 – Mar 31): Due April 15, 2026
- Q2 (Apr 1 – May 31): Due June 15, 2026
- Q3 (Jun 1 – Aug 31): Due September 15, 2026
- Q4 (Sep 1 – Dec 31): Due January 15, 2027
If a deadline falls on a weekend or a federal holiday, the payment is due on the next business day.
How to Calculate Your Payments
There are two ways to calculate your quarterly estimated taxes:
Method 1: The Safe Harbor Rule (Easiest)
The IRS will not penalize you if you pay 100% of the tax shown on your previous year's tax return (or 110% if your adjusted gross income was over $150,000). Simply take last year's total tax liability, divide it by four, and pay that amount each quarter. This is the easiest method if your income is relatively stable.
Method 2: The Annualized Income Method (Most Accurate)
If your income fluctuates significantly (for example, a seasonal business), the Safe Harbor method might force you to overpay during slow months. Instead, you can calculate your tax based strictly on the income you actually earned during that specific quarter. This requires more math but preserves your cash flow.
Automate Your Bookkeeping
Calculating your quarterly taxes is impossible if you don't know your exact profit for the quarter. Don't rely on shoeboxes of receipts.
Try FreshBooks FreeFreshBooks automatically tracks your income and expenses, so you know exactly what your net profit is when it's time to pay the IRS.
How to Make the Payment
Do not mail a check. The easiest, fastest, and most secure way to pay your estimated taxes is online through the IRS portal.
- Go to IRS.gov/payments.
- Select Direct Pay (which links directly to your bank account with no fees).
- Select "Estimated Tax" as the reason for payment.
- Select "1040ES" as the form.
- Select the current tax year.
Important: Keep a record of your confirmation numbers. You will need to report these payments on your annual tax return so you get credit for having paid them!
What About State Taxes?
If your state has an income tax, you must also make quarterly estimated payments to your state's department of revenue. The deadlines are usually the same as the federal deadlines, but the payment portal will be specific to your state.
Calculate Your Next Quarterly Payment
Need to know exactly how much to send the IRS on the 15th? Use our free calculator to determine your exact quarterly estimated tax payment based on your income and state.
Calculate My Quarterly Payment