Quarterly estimated tax payments are how freelancers and other self-employed people pay federal income tax and self-employment tax during the year, since no employer withholds it for them. You generally pay one quarter of your expected annual tax four times a year, using Form 1040-ES or the IRS's online payment options.
The U.S. tax system is pay-as-you-go: tax is due as you earn income, not only in April. This guide covers who needs to make estimated tax payments, the 2026 due dates, how to figure the amount, and what happens if you pay too little.
Who needs to make estimated tax payments
The IRS says you generally need to make estimated payments if you expect to owe at least $1,000 in federal tax for the year after subtracting withholding and refundable credits. That commonly includes:
- Freelancers, independent contractors and gig workers paid on a 1099
- Sole proprietors and partners
- Employees with significant side income, investment income or rental income that isn't covered by withholding
If you have a W-2 job as well as freelance work, you can cover some or all of the extra tax by raising your withholding with a new W-4 instead. Withholding is treated as paid evenly through the year, which can make it simpler than quarterly payments.
2026 estimated tax due dates
The four payment periods aren't equal quarters. For the 2026 tax year, payments are due:
| Payment | Income earned | Due date |
|---|---|---|
| 1st | January 1 to March 31 | April 15, 2026 |
| 2nd | April 1 to May 31 | June 15, 2026 |
| 3rd | June 1 to August 31 | September 15, 2026 |
| 4th | September 1 to December 31 | January 15, 2027 |
When a due date falls on a weekend or legal holiday, it moves to the next business day. Check the IRS estimated taxes page each year for any changes.
How to figure your quarterly payment
Your estimated tax combines two parts:
- Self-employment tax: 15.3% (12.4% Social Security plus 2.9% Medicare) on 92.35% of your net self-employment earnings. The Social Security part stops at the 2026 wage base of $184,500.
- Income tax: figured on your total income after the deduction for half of your self-employment tax, the standard deduction ($16,100 single for 2026) and the tax brackets.
Add those, subtract any withholding you expect from other jobs, and divide by four. If you live in a state with an income tax, you will likely need to make state estimated payments too.
Worked example: a Georgia freelancer with $60,000 net profit
A single freelance writer in Georgia expects $60,000 of net profit for 2026 and has no other income.
| Step | Amount |
|---|---|
| Net profit | $60,000.00 |
| Net earnings subject to SE tax (times 92.35%) | $55,410.00 |
| Self-employment tax (15.3%) | $8,477.73 |
| Deduction for half of SE tax | $4,238.86 |
| Income used for income tax | $55,761.14 |
| Federal income tax (estimate) | $4,511.28 |
| Georgia income tax (estimate) | $2,271.24 |
The income tax lines come from running $55,761.14 through the PaycheckHubs paycheck calculator, which applies the 2026 federal standard deduction and brackets, and Georgia's flat 5.19% rate after its $12,000 standard deduction for single filers.
Federal tax for the year is about $12,989 (self-employment tax plus income tax), so each federal quarterly payment would be about $3,247. Georgia tax of about $2,271 works out to roughly $568 a quarter. Together, that is about $3,815 every quarter, or a little over 25% of net profit. These are estimates; credits, other deductions and the qualified business income deduction can change the real figure. Check the Georgia paycheck calculator or the Georgia Department of Revenue for state payment rules.
Avoiding the underpayment penalty
If you pay too little or pay late, the IRS can charge an underpayment penalty, which works like interest on the shortfall for each quarter. You generally avoid it if one of these is true:
- You owe less than $1,000 after withholding and credits.
- You paid at least 90% of the current year's tax through withholding and estimated payments.
- You paid at least 100% of the prior year's tax, or 110% if your prior-year adjusted gross income was over $150,000.
The prior-year rule is the easiest for many freelancers whose income goes up: take last year's total tax, divide by four, and pay that each quarter. You may still owe a balance in April, but without a penalty. IRS Publication 505 has the full rules.
If your income is uneven
Freelance income often arrives in bursts. If you earn most of your income late in the year, the annualized income installment method lets you match payments to when you earned the money. It requires Form 2210 with your return, so many people use tax software or a tax professional for it.
How to pay
- IRS Direct Pay from your bank account, at no cost
- Your IRS online account
- EFTPS, the Treasury's electronic federal tax payment system
- Card payments through IRS-approved processors, which charge a fee
- Check or money order with a Form 1040-ES voucher
Keep a record of each payment. You report the total on your Form 1040 when you file.
A simple system that works
Many freelancers move a fixed share of every client payment into a separate savings account the day it arrives, then pay from that account each quarter. In the Georgia example, setting aside about a quarter of each payment would cover the estimate. In states with no wage tax, like Texas, the share needed is lower because there's no state income tax.
For background on the self-employment part, see self-employment tax explained. If you are weighing freelance work against a salaried job, read 1099 vs W-2 take-home pay, and if you have a day job plus a side gig, see side hustle taxes.
Frequently Asked Questions
What happens if I miss an estimated tax payment?
You may owe an underpayment penalty for that period. Paying as soon as you can limits it, since the penalty is based on how long the amount was unpaid.
Do I have to make equal payments each quarter?
Equal payments are the default. If your income is uneven, the annualized income installment method can allow smaller early payments.
Can I pay all my estimated tax at once?
Yes, paying early is allowed. Paying the whole year's estimate by the first due date covers every quarter.
Do I need to pay state estimated taxes too?
Most states with an income tax have their own estimated payment rules and due dates. Check your state tax agency.
Sources
- IRS: Estimated Taxes
- IRS Publication 505, Tax Withholding and Estimated Tax
- IRS: Self-Employment Tax
- Tax Foundation: State Income Tax Rates 2026
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.