Even WageQuarterly estimated taxes explained: the step-by-step guide for freelancers
As a freelancer or 1099 contractor, no one withholds taxes from your payments — so the IRS expects you to pay four times a year, in advance. Miss a deadline and you owe a penalty even if you pay in full at year-end. Here's exactly when to pay, how much, and how to do it in five minutes online.
Who must pay quarterly estimated taxes?
The IRS generally requires estimated tax payments if both of these apply to you:
- You expect to owe at least $1,000 in federal income tax after subtracting withholding and credits.
- Your withholding and refundable credits will cover less than the smaller of: 90% of your current-year tax, or 100% of your prior-year tax (110% if your prior-year AGI exceeded $150,000).
In plain English: if you're a full-time freelancer with no day-job paycheck withholding, you almost certainly need to file quarterly. The threshold is low enough that even a few thousand dollars in 1099 income triggers it.
2026 quarterly tax due dates
| Payment period | Due date | Covers income earned |
|---|---|---|
| Q1 2026 | April 15, 2026 | January 1 – March 31 |
| Q2 2026 | June 16, 2026 | April 1 – May 31 |
| Q3 2026 | September 15, 2026 | June 1 – August 31 |
| Q4 2026 | January 15, 2027 | September 1 – December 31 |
Note that Q2's period only covers two months (April–May), not three. This catches many first-year freelancers off guard — the "quarters" are not equal.
If a due date falls on a weekend or federal holiday, it moves to the next business day. Check IRS.gov each year to confirm exact dates.
How to calculate what you owe: two methods
The IRS offers two safe paths that avoid the underpayment penalty. Use whichever produces the lower total payment.
Method 1 — Safe harbor (easiest, most common)
Pay in four equal installments totaling 100% of what you owed in federal income tax last year. If your prior-year AGI was above $150,000, the threshold rises to 110%.
Example: You paid $6,000 in federal tax last year. Divide by 4 = $1,500 per quarter. Pay that on each due date and you're protected from underpayment penalties, even if you end up owing more at year-end.
Safe harbor is the right choice when your income is highly variable (feast-or-famine) and you can't predict this year's earnings — which describes most freelancers.
Method 2 — 90% of current-year liability
Estimate your total tax for the current year and pay at least 90% of it across the four quarters. This is more accurate if your income is rising sharply, but it requires a mid-year projection and is harder to get right.
Use Form 1040-ES (available on IRS.gov) to run the worksheet for either method. Or your tax software (TurboTax, TaxAct) will calculate it automatically when you're filing your return.
How to actually make the payment (5 minutes online)
You don't need to mail a check or file any form separately. The IRS makes this straightforward:
Go to IRS Direct Pay at directpay.irs.gov. It's free, no account required, and accepts bank account (ACH) payments only — no credit cards (use EFTPS or a third-party processor if you want to pay by card, but there's a fee).
Select "Estimated Tax" as the reason for payment and the applicable tax year. For quarterly payments, the payment type is "1040ES."
Verify your identity using information from a recent tax return (prior-year AGI, filing status, etc.).
Enter your bank account and routing number, the payment amount, and the payment date. You can schedule up to 30 days in advance — useful if you want to set all four payments at the start of the year.
Confirm and save your confirmation number. IRS Direct Pay does not send email receipts by default — screenshot or write it down.
Alternative: EFTPS.gov (IRS's Electronic Federal Tax Payment System) requires a one-time enrollment but lets you schedule months in advance and view your payment history. Worth setting up if you'll be doing this for years.
Don't forget state estimated taxes
Most states with income tax require quarterly estimated payments on the same schedule as the IRS. Your state's Department of Revenue will have its own online payment portal — search "[your state] estimated tax payment" to find it. A few states have different due dates, so verify for your state.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax, so no state estimates are required.
What happens if you miss a payment?
Missing a quarterly estimated tax deadline doesn't trigger a fine per se — instead, the IRS charges an underpayment penalty. As of 2026, this is roughly the federal short-term interest rate plus 3%, calculated on the amount underpaid and for the number of days late. On a $1,500 quarterly payment missed for 90 days, that's approximately $20–30 — small enough that some people skip payments intentionally, but it adds up if you're consistently underpaying.
The bigger risk: if you underpay significantly throughout the year (below either safe-harbor threshold), you'll owe the accumulated penalty on top of your year-end balance — right when cash is tight from filing preparation.
Let Even Wage handle the math
The Tax Center in Even Wage calculates your set-aside on every payment, tracks your running total, and displays all four quarterly due dates with how much should be ready. No spreadsheet formulas to build — it's already done. Works in Excel, Google Sheets & Numbers.
Get Even Wage — $19A system that makes this automatic
The hardest part of quarterly estimated taxes isn't the math or the payment — it's the discipline of setting aside money on every invoice before you can spend it. The freelancers who get blindsided in April aren't doing the math wrong; they're spending irregular windfalls without earmarking the tax portion first.
The fix is a system that separates "your money" from "the IRS's money" at the point of deposit — automatically, on every payment. That's the core job of the Tax Center in Even Wage: it watches your income log and keeps a running tax reserve you never accidentally touch.
For more on setting aside the right percentage in the first place, see our guide on how much freelancers should save for taxes. For the bigger picture of managing variable income, see how to budget with an irregular income.
This article is general educational information for U.S. freelancers, not tax or legal advice. Tax rules change annually — verify current due dates and thresholds on IRS.gov or with a qualified tax professional before acting.