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Tax Planning Self-Employed Quarterly Taxes

Quarterly Estimated Taxes: A Plain-English Guide for the Self-Employed

Karl Geldmeister February 4, 2026

When you work for an employer, taxes are withheld from every paycheck automatically. When you're self-employed, that responsibility falls entirely on you — four times a year. Miss a payment and the IRS charges a penalty even if you settle up in full by April 15.

Who Needs to Pay Quarterly?

If you expect to owe at least $1,000 in federal taxes after subtracting withholding and credits, you're required to make estimated payments. This includes freelancers, consultants, sole proprietors, partners, and S-corp shareholders who take distributions.

The 2026 Due Dates

  • Q1 (Jan–Mar): April 15, 2026
  • Q2 (Apr–May): June 16, 2026
  • Q3 (Jun–Aug): September 15, 2026
  • Q4 (Sep–Dec): January 15, 2027

How Much to Pay

The safest approach is the safe harbor rule: pay at least 100% of last year's tax liability (110% if your prior-year AGI exceeded $150,000), spread across four payments. This protects you from underpayment penalties even if your income spikes.

A simpler formula: estimate your annual net profit, multiply by 92.35% (the self-employment income subject to SE tax), then apply the 15.3% SE tax rate, and add your estimated income tax bracket. Divide by four.

How to Pay

IRS Direct Pay at irs.gov/payments is free, fast, and requires no account. EFTPS is better if you want a payment history dashboard. Both accept same-day payments.

Questions about your specific situation? Our team can help you build a quarterly payment schedule that keeps you penalty-free year-round.