How to Calculate and Pay Quarterly Estimated Taxes in 2026

What Are Quarterly Estimated Taxes?

When you're self-employed, nobody withholds taxes from your income. Instead, you're expected to pay the IRS four times a year through estimated tax payments.

If you owe more than $1,000 in taxes for the year and don't make quarterly payments, you'll face underpayment penalties.

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2026 Due Dates

If the due date falls on a weekend or holiday, the deadline moves to the next business day.

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How to Calculate Your Quarterly Payment

The Simple Method

1. Estimate your total annual self-employment income
2. Subtract your business deductions
3. Calculate self-employment tax (15.3% on 92.35% of net income)
4. Calculate income tax on remaining taxable income
5. Add them together
6. Divide by 4

Example: $80,000 freelance income with $15,000 in deductions:

• Net SE income: $65,000
• SE tax: $65,000 x 0.9235 x 0.153 = $9,183
• Half SE deduction: $4,592
• Standard deduction: $15,700
• QBI deduction: $13,000
• Taxable income: $31,708
• Federal income tax: ~$3,562
• Total tax: $12,745
• Quarterly payment: $3,186

Or just use our free tax calculator — it does all of this instantly.

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Safe Harbor Rules

You can avoid underpayment penalties if you pay at least:

1. 100% of last year's tax (110% if your AGI was over $150,000), OR
2. 90% of this year's tax

Most freelancers use option 1 — it's simpler because you already know last year's number.

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How to Pay

For a detailed walkthrough of each payment method, see our guide on how to pay quarterly taxes.

IRS Direct Pay: Pay online at irs.gov/payments — free, instant confirmation

EFTPS: Electronic Federal Tax Payment System — set up recurring payments

IRS2Go App: Mobile payments

Mail a check: Use Form 1040-ES vouchers

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State Estimated Taxes

Most states with income tax also require quarterly estimated payments. Check your state's requirements — due dates may differ from federal.

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Common Mistakes

1. Not paying at all — The penalties add up. Even if you can't pay the full amount, pay something.
2. Using last year's income when this year is much higher — Use the safe harbor rule strategically.
3. Forgetting self-employment tax — It's 15.3% on top of income tax. Most freelancers underestimate by a lot.
4. Not adjusting for deductions — Track deductions throughout the year to avoid overpaying.

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Let TaxPilot Handle It

TaxPilot calculates your quarterly estimates automatically based on your actual income and deductions throughout the year. No more guessing, no more underpayment penalties. Try our free calculator to get started.