Self-employed
Why freelancers owe quarterly taxes
The US tax system is pay-as-you-go. Employees have tax withheld from every paycheck, but if you are self-employed, a 1099 contractor, or have large untaxed income, you generally must send the IRS estimated payments four times a year using Form 1040-ES. Skip them and you can owe an underpayment penalty even if you pay in full by April.
What goes into each payment
Your estimate combines two taxes: self-employment tax (15.3% — 12.4% Social Security up to the $184,500 wage base plus 2.9% Medicare, applied to 92.35% of net earnings) and federal income tax on your taxable income. You get to deduct half of the SE tax and your standard deduction before computing income tax. Subtract anything already withheld from a W-2 job, then divide by four.
| 2026 quarter | Period covered | Payment due |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 15, 2026 |
| Q2 | Apr 1 – May 31 | June 15, 2026 |
| Q3 | Jun 1 – Aug 31 | September 15, 2026 |
| Q4 | Sep 1 – Dec 31 | January 15, 2027 |
The safe-harbor shortcut
You avoid the underpayment penalty if you pay the smaller of 90% of this year’s tax or 100% of last year’s tax (110% if your prior-year AGI exceeded $150,000). Many people simply pay last year’s liability in four equal installments and settle up in April — a clean way to stay penalty-proof when income is rising.
Self-employed owners should also check the QBI deduction calculator (it can cut income tax by up to 20% of profit) and the dedicated self-employment tax calculator. For your overall blended rate, see the effective tax rate calculator.
Questions
Estimated Quarterly Tax Calculator 2026 FAQ
Who has to pay quarterly estimated taxes?
Generally anyone who expects to owe $1,000 or more in tax after withholding and credits — most self-employed people, 1099 contractors, freelancers, investors and landlords. If all your income is from a W-2 job with enough withholding, you usually do not need to make estimated payments.
When are 2026 estimated taxes due?
The four federal deadlines are April 15, 2026 (Q1), June 15, 2026 (Q2), September 15, 2026 (Q3) and January 15, 2027 (Q4). If a date falls on a weekend or holiday, it shifts to the next business day. Payments can be made online through IRS Direct Pay or EFTPS.
What is the safe-harbor rule?
You avoid an underpayment penalty if your total estimated payments and withholding equal at least 90% of your current-year tax or 100% of your prior-year tax — 110% if your prior-year AGI was over $150,000. Paying the prior-year amount in four equal installments is the simplest way to be safe.
How is self-employment tax calculated?
Self-employment tax is 15.3% on 92.35% of your net self-employment earnings: 12.4% for Social Security up to the $184,500 wage base (2026) and 2.9% for Medicare with no cap, plus 0.9% Additional Medicare Tax on high earnings. You can deduct half of the SE tax when figuring income tax.
- Sources: IRS Form 1040-ES (estimated tax) · IRS Schedule SE · IRS Rev. Proc. 2025-32 (2026 brackets & standard deduction) · SSA 2026 wage base $184,500.
- 🔄 Last updated June 27, 2026 · Tax year 2026
Disclaimer: Educational estimate, not tax advice; the operator is not a CPA. It simplifies state tax, credits, the QBI deduction and uneven income (annualized method). Confirm your payments with a tax professional or the IRS.
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