FreeFederal + State2026

Quarterly Estimated Tax Calculator 2026

Calculate your 1040-ES quarterly payments in seconds. For self-employed, freelancers, and gig workers — federal and state, with safe harbor option.

1Enter SE income & expenses
2Add W-2 / withholding
3Choose state & filing status
4Get quarterly amounts + due dates

1040-ES Estimated Tax

Federal + state · Results update instantly

2026

Income

$
$
$
$

Settings

Per quarter

$2,494.91

$9,980 total annual · 4 equal payments

Effective rate

22%

SE Tax

$6,358

15.3% self-empl.

Federal

$2,839

Income tax

State

$783

California

Payment schedule

Q1

$2,494.91

April 15, 2026

Q2

$2,494.91

June 15, 2026

Q3

$2,494.91

September 15, 2026

Q4

$2,494.91

January 15, 2027

2026 Quarterly Estimated Tax Due Dates

QuarterIncome PeriodDue Date
Q1Jan–MarApril 15, 2026
Q2Apr–MayJune 15, 2026
Q3Jun–AugSept 15, 2026
Q4Sep–DecJan 15, 2027

If a due date falls on a weekend or federal holiday, it moves to the next business day. Farmers and fishermen have different rules — see IRS Publication 505.

Estimated Tax by State

Click any state to open its quarterly estimated tax calculator.

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What most guides don't tell you about quarterly taxes

The mechanics are straightforward. The strategy takes longer to learn.

The quarterly calendar wasn't designed for freelancers — and it shows

Q2 covers only April and May — two months of income — yet it's due just nine weeks after Q1. Meanwhile Q4 covers September through December (four months) and you don't pay until January 15. The lopsided schedule has agricultural roots: the system was built for farmers who needed flexibility around harvests and never got updated for the modern gig economy. The practical consequence: if you do project-based work and a big contract lands in October, that income all stacks into Q4 — which you estimate in January, looking at four-month-old numbers.

The cleaner approach that most experienced self-employed people eventually land on: set aside a fixed percentage of every payment you receive — 25–30% is a reasonable starting point for most tax situations — into a separate account, regardless of which quarter it lands in. Then pay from that account on the quarterly due dates. You stop trying to predict the future and just tax yourself at the source.

The April 15 double-hit

April 15 is the same deadline for both your prior-year return balance and your Q1 estimated payment for the current year. New freelancers get blindsided by this every first year — you owe last year's taxes and start paying this year's on the same day. Build that into your April cash flow plan well before March.

If you have a W-2 job, you may never need to make a quarterly payment

The IRS treats W-2 withholding as if it were paid evenly throughout the year — regardless of when it actually left your paycheck. So if you have a day job alongside your freelance income, you can ask your employer to withhold an extra flat dollar amount each pay period (via IRS Form W-4, line 4(c)) to cover your expected self-employment tax liability. If you get paid biweekly, a modest extra $400 per check adds up to $10,400 over the year — which might cover your entire quarterly obligation.

This approach eliminates the quarterly filing hassle and the risk of missing a due date. It works even if your freelance income is unpredictable, because you're satisfying safe harbor through accumulated withholding rather than guessing your quarterly payments. The catch: your employer can only withhold from your W-2 earnings, so if your W-2 income isn't large enough to cover the extra withholding, you'll still need quarterly payments for the remainder.

How to calculate the extra withholding amount

Use this calculator to find your estimated annual tax on your self-employment income. Divide by the number of pay periods you have left in the year. That's the extra amount to request on Form W-4. Do this in January to spread it across all 26 biweekly or 24 semi-monthly pay periods.

Safe harbor avoids penalties — but it can cost you thousands in cash flow

Safe harbor is designed for income uncertainty, not for all situations. Pay 100% of prior-year tax (or 110% if your prior-year AGI exceeded $150,000) and the IRS won't penalize you, even if your actual tax is higher. The mechanic is sound — but the math can work against you when your income drops significantly from one year to the next.

Say you had a great consulting year in 2025 ($180,000 AGI) but 2026 looks slower — maybe $40,000. Under the 110% safe harbor rule, you'd owe quarterly payments based on 110% of your 2025 tax bill. That might mean sending $30,000+ in quarterly payments on a year where your actual liability is closer to $8,000. You'll get the overpayment back as a refund in spring 2027, but you've given the IRS an interest-free loan all year.

When to skip safe harbor and use the actual method instead

  • Your income is materially lower than last year (career change, health issue, business slowdown)
  • You had a one-time income event last year (sold a business, exercised options, large capital gain)
  • You can estimate current-year income with reasonable confidence

The January 15 payment you're legally allowed to skip

Almost no one knows this: per the 2026 Form 1040-ES, the Q4 estimated payment due January 15 is entirely optional — if you file your complete 2026 tax return and pay any remaining balance owed by February 1, 2027. (January 31, 2027 falls on a Sunday, so the IRS moves the deadline to the next business day.) Not just file by February 1, but file and pay. If you do both, the IRS waives any Q4 underpayment penalty.

This matters most for freelancers who do significant work in November and December and find it hard to estimate their Q4 income accurately in early January. Instead of guessing, you can close your books quickly, file your return early, and just pay the exact amount owed. No estimate required. The main downside: you need your records together by late January, which isn't realistic for everyone. But if you track income and expenses in real time, it's often easier than estimating.

One more Q4 thing worth knowing

If a client pays you on January 2 instead of December 30, that income falls in Q1 of the new year — not Q4 of the old one. Estimated taxes for individuals work on a cash basis. A two-day delay on a large invoice can meaningfully shift your Q4 liability, and you have until April 15 to address Q1 instead of January 15. Some freelancers time invoice issuance strategically for this reason.

Self-employment tax: the 15.3%, the 92.35% multiplier, and the AGI deduction

SE tax is 15.3% total: 12.4% Social Security plus 2.9% Medicare. But you don't pay it on 100% of your net profit — you pay it on 92.35% of net earnings. Here's why: employees don't pay FICA on the employer's matching half. The IRS gives self-employed people the same treatment by letting you reduce your SE earnings by the "employer-equivalent" portion (7.65%) before the tax is calculated. So: SE tax base = net profit × (1 − 0.0765) = net profit × 0.9235.

Example: $80,000 net self-employment profit

  • SE tax base: $80,000 × 0.9235 = $73,880
  • SE tax: $73,880 × 15.3% = $11,304
  • AGI deduction (50% of SE tax): $11,304 × 50% = $5,652 off your gross income (Schedule 1, line 15)

The Social Security portion (12.4%) is capped — only the first $184,500 of combined wages and net SE earnings is subject to it in 2026. If you also have W-2 wages, those count first toward the cap. Medicare (2.9%) has no cap. Additionally, net SE earnings above $200,000 single / $250,000 MFJ are subject to an extra 0.9% Additional Medicare Tax — the same surtax that applies to high-earning W-2 workers.

Your estimated quarterly payments must cover both your income tax and your self-employment tax. New self-employed people often calculate quarterly payments based only on income tax and get a nasty surprise — SE tax is typically the bigger bill at lower income levels.

California's 30/40/0/30 schedule: how state estimated tax differs from federal

California is the most important example of a state that does not follow the federal equal-quarters structure. While the IRS expects four payments of 25% each, the California FTB (Franchise Tax Board) requires a 30% / 40% / 0% / 30% installment schedule — meaning a larger front-loaded payment in June and nothing due in September. Paying California in equal quarters is a mistake that triggers an underpayment penalty even if your annual total is correct.

PaymentDue dateFederal %California %
Q1April 15, 202625%30%
Q2June 15, 202625%40%
Q3Sept 15, 202625%0%
Q4Jan 15, 202725%30%

Other California differences (2026)

  • Threshold: $500 owed (vs $1,000 federal); $250 if MFS
  • Safe harbor prior year: 100% (no 110% surcharge for high earners)
  • Q4 skip: file + pay by January 31, 2027
  • Form: 540-ES (not 1040-ES)
  • Payment portal: FTB Web Pay — cannot pay CA tax via EFTPS

Other common state quirks

  • Some states set their own due dates that differ from federal — always check your state revenue department
  • Nine states have no income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY
  • Each state has its own safe harbor threshold and penalty rate — never assume federal rules apply

Source: FTB.ca.gov Estimated Tax Payments and 2026 Form 540-ES Instructions.

What the underpayment penalty actually costs: real dollar math for 2026

The underpayment penalty is often treated like a boogeyman. In practice it's a daily interest charge — not a flat fine, not a percentage of your tax, and not a criminal matter. The 2026 rate is 7% annualized (federal short-term rate + 3 percentage points, per IRC §6621). It is calculated separately for each payment period that was underpaid, for the exact number of days the shortfall existed.

Formula: Penalty = underpaid amount × 7% × (days unpaid ÷ 365)

ScenarioShortfallDays unpaidPenalty
Miss Q1 entirely; pay at filing (Apr 15, 2027)$2,000365~$140
Underpay Q2 by $1,500; pay at filing (Apr 15, 2027)$1,500~304~$88
Pay Q3 two months late (Nov 15 instead of Sep 15)$3,000~61~$35
Miss all four quarters entirely$8,000 totalvaries by Q~$400–$500

Key facts about the penalty:

  • The IRS figures the penalty for you using Form 2210 — you generally do not need to file it yourself unless you're requesting a waiver or using the Annualized Income Installment Method (Schedule AI).
  • The rate changes quarterly, set by the IRS as the federal short-term rate + 3%. For 2026, Q1 rate was 6% and Q2 was 7%. The IRS publishes updates at IRS.gov/payments/quarterly-interest-rates.
  • There is no penalty at all if you owe less than $1,000 after withholding and credits at filing — regardless of quarterly payments made.
  • The penalty can be waived if the underpayment resulted from a casualty, disaster, or retirement/disability during the tax year. See IRS Topic 306 for waiver conditions.

How to Actually Make the Payments

Federal (three options)

  • IRS Direct Pay at IRS.gov/payments — free, no account needed, but limited to 2 payments per day
  • EFTPS (requires prior enrollment) — preferred by accountants because it allows scheduling payments in advance and keeps a full payment history
  • Mail a check with Form 1040-ES voucher — allow 5–7 business days; the IRS uses the postmark date, not the arrival date

State (the part people forget)

Every state with an income tax runs a completely separate estimated payment system. You cannot pay state taxes through the federal EFTPS portal. Each state has its own payment portal, voucher system, and — crucially — its own due dates that sometimes differ from the federal schedule.

Check your state revenue department website for the exact portal. Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — no state estimated payments required.

Disclaimer: This calculator is for planning only. Tax rules and state requirements vary. Consult IRS Publication 505, Form 1040-ES instructions, or a tax professional for your situation.

Official Sources

How we calculate your quarterly estimated tax
Step-by-step breakdown of the 1040-ES estimate shown in the calculator above. Last reviewed 2026-02-17.

The quarterly amounts above come from your inputs on this page—not a third-party widget. We estimate your full-year self-employment and income tax, subtract any W-2 withholding you already have, optionally apply the IRS safe harbor rule, then divide the remainder into four equal federal installments. Below are the formulas, the order we follow, and a worked example you can check by hand.

Formulas

These are the equations behind the calculator. Dollar amounts come from the fields you enter above.

LineFormula
Net profitSelf-employment income − Business expenses (cannot be less than $0)
Self-employment tax baseNet profit × 92.35%
Self-employment taxSocial Security (12.4% on base, up to $184,500 wage base) + Medicare (2.9% on full base) + Additional Medicare (0.9% above $200,000 single / $250,000 married filing jointly when W-2 + SE income combined exceed the threshold)
Federal taxable incomeNet profit − 50% of (Social Security + Medicare portions of SE tax) + Other W-2 income, then minus standard deduction
Annual tax liabilitySelf-employment tax + Federal income tax + State income tax
Remaining to payAnnual tax liability − W-2 withholding already paid (minimum $0)
Safe harbor (optional)Prior year total tax × 100% (or × 110% if your income exceeds $150,000)
Quarterly paymentWhen safe harbor is on: lesser of (remaining based on current-year estimate, remaining based on safe harbor). Otherwise: remaining to pay
Per quarterQuarterly payment ÷ 4

Order of operations

1

Calculate net profit from self-employment

Net profit = Self-employment income − Business expenses

We start with your 1099 or Schedule C net earnings. Expenses reduce profit before any tax is calculated. If expenses exceed income, net profit is zero.

2

Calculate self-employment tax

SE base = Net profit × 92.35%; SE tax = Social Security + Medicare (+ Additional Medicare if applicable)

Self-employed workers pay both the employee and employer halves of FICA through Schedule SE. The IRS taxes 92.35% of net profit—not 100%—to mirror the employer share W-2 workers never see on their paycheck. Half of the base Social Security and Medicare SE tax reduces your income for federal tax.

3

Calculate federal and state income tax

Federal + State income tax on taxable income after the SE tax deduction and standard deduction

We combine net profit, the deductible half of SE tax, and any W-2 wages, then apply federal brackets and your selected state's income tax rules—the same logic as our 1099 tax calculator.

4

Total annual tax liability

Annual liability = Self-employment tax + Federal income tax + State income tax

This is your estimated full-year tax before any payments you have already made through W-2 withholding.

5

Subtract W-2 withholding

Remaining = Annual liability − W-2 withholding (minimum $0)

If you also have a W-2 job, enter federal withholding from your pay stubs. That reduces how much you need to send in quarterly estimated payments.

6

Apply safe harbor (if enabled)

Safe harbor = Prior year tax × 100% (or × 110% if income > $150,000); use lesser of current-year remaining or safe harbor remaining

Paying 100% of last year's tax (110% for higher incomes) in four installments generally avoids federal underpayment penalties even if this year's actual tax is higher. We use your current-year income as a proxy for the $150,000 threshold when you do not enter prior-year AGI separately.

7

Divide into four quarterly payments

Per quarter = Quarterly payment ÷ 4

Federal Form 1040-ES assumes four equal installments due April 15, June 15, September 15, and January 15. Some states use different percentages or due dates—we show federal equal quarters only.

Worked example

$75,000 self-employment income, $8,000 expenses, single filer, Texas

Step A — net profit.

Net profit = $75,000 $8,000 = $67,000

Step B — self-employment tax.

SE base = $67,000 × 92.35% = $61,874.50. Self-employment tax = $9,466.80 (Social Security + Medicare on the SE base). Half of base SE tax ($4,733.40) reduces federal taxable income.

Step C — income tax.

Federal income tax = $5,291.99. Texas has no state income tax on wages.

Step D — quarterly payments.

Annual liability = $9,466.80 + $5,291.99 = $14,758.79. No W-2 withholding entered. Per quarter = $14,758.79 ÷ 4 = $3,689.70.

Line itemAmount
Net profit$67,000
Self-employment tax$9,466.80
Federal income tax$5,291.99
Texas state income tax$0
Annual tax liability$14,758.79
W-2 withholding applied-$0
Total quarterly payments$14,758.79
Per quarter (÷ 4)$3,689.70
QuarterDue date (2026)Payment
Q1April 15, 2026$3,689.70
Q2June 15, 2026$3,689.70
Q3September 15, 2026$3,689.70
Q4January 15, 2027$3,689.70

$9,466.80 SE tax + $5,291.99 federal + $0 Texas state = $14,758.79 annual liability; ÷ 4 = $3,689.70 per quarter

Texas has no state income tax on this example, so the full $14,758.79 is federal only. In California with the same income, state tax adds about $1,874.80 and annual liability rises to about $16,633.59.

Rates and parameters we use

ParameterWhat we use
SE tax base multiplier92.35%
Social Security rate (SE)12.4% on SE base
Medicare rate (SE)2.9% on SE base (no cap)
2026 Social Security wage base$184,500
Safe harbor — standard100% of prior year total tax
Safe harbor — higher income110% of prior year total tax
2026 federal due datesApr 15, Jun 15, Sep 15, Jan 15, 2027

What we do not model on this page

We model federal equal 25% quarters only—not California's 30/40/0/30 schedule, annualized installment method (Form 2210 Schedule AI), or state-specific due dates that differ from the IRS. Safe harbor 110% uses current-year income as a proxy for the $150,000 AGI test because we do not collect prior-year AGI separately. We do not calculate underpayment penalty interest, refundable credits beyond W-2 withholding, or estimated payments already made earlier in the year.

Frequently Asked Questions

The underpayment penalty is calculated at the IRS short-term rate plus 3% — in 2026, that's roughly 7–8% annualized, applied only to the amount you underpaid and only for the days it was underpaid. In practice, a modest underpayment for part of a quarter often amounts to less than $50. It's not a criminal penalty, it doesn't accrue late fees, and it gets assessed when you file your return — not as a separate notice. That said, serial underpayment across multiple quarters adds up. If you find yourself consistently behind, the W-4 withholding strategy or safe harbor enrollment will eliminate the problem more reliably than guessing each quarter.

Not exactly. The $1,000 threshold is about your estimated liability after withholding — not your final balance due at filing. If you had significant W-2 withholding that covered most of your tax, you might owe $4,000 at filing without having triggered any quarterly requirement. The IRS looks at whether your withholding plus estimated payments met the safe harbor threshold (100% or 110% of prior-year tax, or 90% of current-year tax) throughout the year. If it did, you won't owe a penalty regardless of how large your April balance is.

The four equal installments approach is the default — and the simplest. But the IRS does allow unequal payments if you use the Annualized Income Installment Method (Form 2210, Schedule AI), which bases each quarter's payment on what you actually earned in that period rather than a flat annual estimate divided by four. This is valuable for seasonal businesses (a landscaper who earns 80% of revenue in summer), for freelancers who start mid-year, or for anyone who receives a single large payment late in the year. It's more paperwork, but it can legitimately defer early quarterly obligations when income is genuinely back-loaded.

A single-member LLC taxed as a disregarded entity changes nothing — you report everything on Schedule C and file 1040-ES exactly like a sole proprietor. If you've elected S-corp taxation, the mechanics shift: the corporation pays your salary with W-2 withholding handling payroll taxes, and you make estimated payments only on the distributions (net profit passed through to you as an owner) that aren't covered by that withholding. S-corps are often used precisely to reduce SE tax — but the distributions still generate federal and state income tax, which still requires quarterly payments unless withholding covers them.

This confuses almost everyone the first time they see it. The underpayment penalty is calculated quarter by quarter, not on an annual net basis. If you underpaid Q1 and Q2 but then made large payments in Q3 and Q4 that resulted in an overall refund, the IRS still assesses the penalty for Q1 and Q2's shortfall periods. It's like owing rent: paying double in March doesn't erase the late fee from January. The fix going forward is either safe harbor (which pegs payments to prior-year tax and avoids this entirely) or annualized installments (which aligns payments to actual earned income).

Two reliable strategies for variable income: (1) Set aside 25–30% of every payment you receive into a dedicated tax account, then draw from it on the quarterly due dates. You're always current because you're taxing yourself at the source, not forecasting. (2) Use safe harbor — base your quarterly payments on 100% of last year's tax (or 110% if your prior-year AGI exceeded $150K), pay four equal installments, and accept that you'll either owe or get a refund at filing depending on how the year actually went. Safe harbor doesn't eliminate the year-end reconciliation — it eliminates the penalty. For highly variable income, that tradeoff is usually worth it.

Because W-2 employees split FICA with their employer — each pays 7.65%. The IRS gives self-employed people the same treatment: before computing SE tax, you reduce net earnings by the 'employer-equivalent' half of SE tax (7.65%). That's where 92.35% comes from (1 − 0.0765 = 0.9235). The actual SE tax rate is still 15.3%, but applied to the reduced base. On $80,000 net profit: base = $73,880; SE tax = $11,304. You then deduct half of SE tax ($5,652) as an above-the-line adjustment on Schedule 1 — this reduces your AGI and therefore your income tax. Your quarterly estimated payments must cover both income tax and SE tax, which surprises many first-year freelancers.

Yes. California's FTB uses a 30/40/0/30 installment schedule (Form 540-ES), not equal 25% quarters. Q1 (April 15): 30%. Q2 (June 15): 40%. Q3 (September 15): 0% due. Q4 (January 15): 30%. Paying equal quarters in California triggers an underpayment penalty even if your total annual payment is correct, because the FTB calculates the penalty period by period. California's threshold is $500 owed (vs $1,000 federal), and the Q4 skip requires filing and paying by January 31, 2027 (one day earlier than the federal February 1, 2027 deadline). Pay via FTB Web Pay — you cannot use the federal EFTPS portal for California taxes.

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