Quarterly Estimated Taxes: A 2026 Guide
Quarterly estimated taxes: overview
This page is an informational summary of quarterly estimated tax payment rules for the 2025 and 2026 tax years, drawn from IRS sources. Tax situations vary. Confirm current details at irs.gov or with a qualified tax professional before making financial decisions.
If you expect to owe at least $1,000 in federal income tax after subtracting withholding and refundable credits, you generally must make quarterly estimated tax payments. For 2026 income, those four payment due dates are April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. Missing them can trigger an underpayment penalty.
Who has to pay quarterly estimated taxes?
The IRS requires estimated payments when all three of the following conditions apply:
- You expect to owe $1,000 or more in tax for the year after subtracting federal income tax withheld and any refundable credits.
- You expect your withholding and refundable credits to cover less than 90 percent of this year's tax liability, and
- Your withholding and refundable credits also cover less than 100 percent of last year's tax liability (110 percent if your prior-year adjusted gross income exceeded $150,000, or $75,000 if married filing separately).
In practice, this affects filers whose income is not fully subject to employer withholding. Common examples include:
- Self-employed individuals and 1099 contractors — no employer withholds Social Security, Medicare, or income tax on their behalf. For a deeper look at the self-employment tax picture, see our guide on self-employed and 1099 tax obligations.
- Investors receiving capital gains or dividend income throughout the year.
- Landlords with rental income not covered by withholding.
- Retirees receiving pension distributions, Social Security benefits (when partially taxable), or IRA withdrawals without withholding elections.
- Gig-economy workers whose payers do not withhold federal tax.
- Employees who receive a large bonus or exercise stock options, where standard payroll withholding may fall short.
If your situation changed significantly from last year — a new freelance contract, a rental property purchase, or the sale of an investment — reviewing whether estimated payments apply is worthwhile. The guide on whether you need to file a federal return covers related thresholds.
When are estimated taxes due in 2026?
The IRS divides the year into four uneven payment periods. Each installment covers income earned during that window. Note that the periods are not three calendar months each — the first period is two and a half months, the second is two months, and the third is three months.
| Income period covered | Payment due date |
|---|---|
| January 1 – March 31, 2026 | April 15, 2026 |
| April 1 – May 31, 2026 | June 15, 2026 |
| June 1 – August 31, 2026 | September 15, 2026 |
| September 1 – December 31, 2026 | January 15, 2027 |
If any due date falls on a weekend or federal holiday, the IRS moves the deadline to the next business day. For the 2025 tax year (the return due April 15, 2026), Q4 2025 estimated payments were due January 15, 2026. Taxpayers who filed their 2025 return and paid any remaining balance in full by January 31, 2026 were generally not required to make the January 15 estimate. Refer to IRS Estimated Taxes for current guidance on deadline exceptions.
For a full picture of 2026 federal filing and payment deadlines, the guide on tax filing deadlines for 2026 covers annual returns, extensions, and other key dates.
How do I figure out what to pay?
Form 1040-ES includes a worksheet that walks through an estimated tax calculation. The underlying goal is to reach one of the safe-harbor thresholds that protect against the underpayment penalty:
| Filer situation | Safe-harbor amount (withholding + estimates) |
|---|---|
| Most filers | At least 90% of the current year's tax liability |
| Most filers (prior-year method) | At least 100% of the prior year's total tax |
| Prior-year AGI over $150,000 (or $75,000 MFS) | At least 110% of the prior year's total tax |
Using the prior-year method can simplify planning when current-year income is difficult to project. You take last year's total tax liability from your return (the 100% or 110% figure, depending on your AGI), divide by four, and submit roughly equal quarterly amounts. Because withholding is treated as paid evenly throughout the year, W-2 employees who also have self-employment income may be able to cover part of the shortfall through adjusted paycheck withholding rather than separate estimated installments — see the FAQ below for details.
When income is uneven — seasonal business, a one-time asset sale in Q3 — the annualized income installment method described in Form 2210 and IRS Publication 505 allows installments to be sized proportionally to income earned in each period. This can result in lower Q1 and Q2 payments when income ramps later in the year.
How do I pay estimated taxes?
Estimated payments are submitted using Form 1040-ES. The form itself is primarily a calculation worksheet; the actual remittance can be made through several channels.
IRS Direct Pay
IRS Direct Pay allows a payment to be pulled directly from a checking or savings account at no charge. No enrollment is required. Payments can be scheduled up to 30 days in advance and confirmation is immediate. This is generally the most straightforward electronic option for individual filers.
Electronic Federal Tax Payment System (EFTPS)
EFTPS is the IRS's dedicated electronic payment system. It requires a one-time enrollment using your Employer Identification Number or Social Security number. Once enrolled, it supports scheduled payments up to 365 days ahead and provides a full payment history — useful for filers who want a centralized record across multiple tax types (estimated tax, self-employment tax, etc.).
Debit or credit card
The IRS authorizes several third-party payment processors to accept card payments. A processing fee applies — percentage-based for credit cards, flat fee for debit cards. Details are available at irs.gov/payments.
Mail (check or money order)
A paper voucher from the Form 1040-ES booklet, along with a check or money order payable to the U.S. Treasury, can be mailed to the IRS address for your state. Include your Social Security number, the tax year, and "1040-ES" in the memo line. Mail payments are considered timely if postmarked by the due date. See About Form 1040-ES for current mailing addresses.
What is the penalty for underpaying?
When withholding and timely estimated payments fall short of a safe-harbor threshold, the IRS may assess an underpayment penalty. The penalty is not a flat fine — it functions as interest on the underpaid amount, calculated from the date each installment was due through the date of payment (or the return due date, whichever is earlier). The rate tracks the federal short-term rate plus three percentage points and adjusts quarterly.
The penalty is computed on Form 2210 and is sometimes calculated by the IRS on your behalf if you do not attach the form. The IRS will send a bill if a penalty is owed.
Certain exceptions can reduce or eliminate the penalty even when a safe harbor is not met — for example, when the underpayment was due to a casualty, disaster, or other unusual circumstance, or when you retired or became disabled during the tax year. Form 2210 instructions detail the exceptions and the waiver-request process.
Because the penalty is proportional to both the underpaid amount and the duration of the shortfall, the practical effect of missing an early quarterly installment is generally larger than missing a late one. Catching up in a later quarter does not retroactively eliminate the penalty for the earlier period, though it does stop the accrual from that point forward.
Frequently asked questions
What if my income varies throughout the year?
Filers with seasonal or irregular income may benefit from the annualized income installment method. Rather than dividing an annual estimate into four equal parts, each installment is based on income actually earned through that period. The calculation is performed on Form 2210 (Schedule AI); IRS Publication 505 provides a detailed worksheet. A qualified tax professional can help determine whether this method produces lower required installments given your income pattern.
Can I cover a shortfall by increasing my paycheck withholding instead?
Yes. Federal withholding is treated as paid evenly across the year regardless of when it was actually deducted, so adjusting your Form W-4 with your employer to withhold additional tax is one way to reduce or eliminate a shortfall. This can be useful for filers who have side income or investment gains but prefer not to track and submit separate quarterly payments. The additional withholding amount must be sufficient to reach the applicable safe-harbor threshold.
What if I miss a quarterly due date?
A late or missed installment does not prevent you from filing your return; it may, however, result in an underpayment penalty for that period. Making the payment as soon as possible limits further accrual. If subsequent quarters bring in less income than expected, the overall penalty may be modest. Form 2210 is used to determine the penalty owed, and in some circumstances the IRS will compute it automatically after you file. Waivers are available for certain hardship situations as described in the Form 2210 instructions.
Do I need to make estimated payments if I already get a refund every year?
Not necessarily. If your employer withholding consistently covers at least 100 percent of your prior-year tax (or 110 percent if your AGI exceeded $150,000), you generally satisfy the safe harbor even without separate estimated payments. However, a significant income change — a freelance contract, rental income, or capital gain — can shift the calculation. Reviewing your withholding position when income changes is worthwhile.
Are state estimated taxes separate from federal?
Yes. Most states that impose an income tax have their own estimated payment requirements, due dates, and safe-harbor rules that differ from federal rules. State payments are made to the relevant state revenue agency, not to the IRS. This page covers federal obligations only. A qualified tax professional in your state can clarify state-specific requirements.