Estimated Tax Payments 2026

Self-employed individuals, freelancers, and investors must make quarterly estimated tax payments.

Due Dates

Q1: April 15. Q2: June 15. Q3: September 15. Q4: January 15 (following year). If date falls on weekend/holiday: next business day.

Who Must Pay

Expected tax liability $1,000+. No withholding sufficient. Self-employed. Freelancers. Investment income. Rental income. Side hustle income.

Calculation Methods

Current year method: 90% of current year tax. Prior year method: 100% of prior year tax (110% if AGI > $150K). Annualized income method for uneven income.

Safe Harbor Rules

Pay 100% of prior year tax (110% high income). Pay 90% of current year. Equal quarterly payments. Any method avoids penalty.

Penalty

Underpayment rate: 8% annually (2026 estimate). Applied quarterly. Compounds. Can be significant for large underpayments.

Strategies

Use prior year safe harbor. Set aside 25–30% of income. Increase W-4 withholding (treated as equal payments). Use annualized method for irregular income.