Estimated taxes for 2026: who pays, how much and when
If you earn money without tax taken out (freelance work, a side business, investments, rental income), the IRS expects you to pay during the year, not just at tax time. Here is who has to, how much is enough and when it is due.
General information, not tax advice. Based on IRS Publication 505 (2026) and IRS guidance (checked October 15, 2026).
Who must pay
In most cases you must make estimated payments for 2026 if both are true:
- You expect to owe at least $1,000 after subtracting withholding and refundable credits.
- Your withholding and credits will be less than the smaller of 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 AGI was over $150,000, or $75,000 married filing separately).
You do not have to pay at all if you had no tax liability for 2025, were a U.S. citizen or resident all year, and that year covered 12 months. Farmers and fishers who get two-thirds of their income from farming or fishing use 66⅔% instead of 90%.
The safe harbors: how much is enough
Paying the smaller of these amounts on time, through withholding plus estimated payments, avoids the underpayment penalty even if you owe more when you file:
| 90% of this year's tax | Best when income is falling |
| 100% of last year's tax | Best when income is rising; easy to know in advance |
| 110% of last year's tax | Instead of 100% if last year's AGI was over $150,000 |
Example. Your total tax last year was $8,000. Paying $2,000 a quarter (100% of last year) protects you from the penalty this year, however much you earn. If last year's AGI was over $150,000, pay $2,200 a quarter instead. You settle the rest when you file.
2026 due dates
| Income earned | Payment due |
|---|---|
| January 1 to March 31 | Wed, April 15, 2026 |
| April 1 to May 31 | Mon, June 15, 2026 |
| June 1 to August 31 | Tue, September 15, 2026 |
| September 1 to December 31 | Fri, January 15, 2027 |
The periods are not equal quarters. A due date on a weekend or holiday moves to the next business day. You can skip the January payment if you file your 2026 return by January 31, 2027 and pay everything you owe. See all dates on tax deadlines.
How to pay
- IRS online account or IRS Direct Pay: free transfers from a bank account.
- EFTPS: the Treasury's free payment system; requires enrollment.
- Debit or credit card or digital wallet: through IRS-approved processors, which charge a fee.
- Check or money order with a Form 1040-ES payment voucher.
- Apply last year's refund to this year's estimated tax when you file.
Have a W-2 job too? Raising your withholding on Form W-4 can replace some or all of the quarterly payments.
The underpayment penalty
The penalty is figured separately for each payment period, based on how much was short, how long, and the IRS's quarterly interest rate for underpayments. It is not a flat fee, and it stops growing once you pay. The IRS usually figures it and sends a notice; you can figure it yourself, or ask for a waiver or use the annualized method, on Form 2210.
If your income changes mid-year, refigure your estimate and pay the difference by the next due date, spread over the payments left.
Work out your amounts: the self-employment tax calculator figures your 2026 tax and the safe-harbor payment for each due date. For your whole return, use the tax refund calculator.
Frequently asked questions
Do I have to pay estimated tax if I have a W-2 job too?
Only if your withholding falls short. Instead of quarterly payments, you can file a new Form W-4 to have more withheld from your paycheck.
What if I miss a payment?
Pay as soon as you can. The penalty works like interest on each late or short payment, so it stops growing once you catch up. Later payments do not erase the penalty for earlier quarters.
Do I get a penalty if I end up with a refund?
You can. The penalty is figured for each payment period, so being short early in the year can cost a penalty even if you are due a refund when you file.
My income was uneven. Do I have to pay four equal amounts?
No. If most of your income came late in the year, the annualized income installment method (Form 2210, Schedule AI) lets your required payments follow your income and can reduce or remove the penalty.
Can I skip the January payment?
Yes, if you file your 2026 return by January 31, 2027 and pay all the tax you owe with it.
Can the penalty be waived?
Sometimes. It generally cannot be waived just for reasonable cause, but the IRS may remove or reduce it after circumstances beyond your control, such as a serious illness, injury or a death in the family, and may reduce it if you retired after age 62 or became disabled in the last 2 years and had reasonable cause. You ask on Form 2210 or in writing.
Do married couples pay together?
You can make joint estimated payments even if you later file separately, unless you are legally separated, have different tax years, or one spouse is a nonresident alien.
Official sources
- IRS Publication 505 (2026), Tax Withholding and Estimated Tax
- IRS Form 1040-ES, Estimated Tax for Individuals
- IRS: Underpayment of estimated tax by individuals penalty
- IRS Form 2210, Underpayment of Estimated Tax by Individuals
Related: independent contractor tax checklist · self-employment tax calculator · tax deadlines · 1099 forms explained