Quarterly estimated taxes: who pays, when, and how much

2026 examples. Figures, rates and dates on this page change by year; check current IRS and state guidance before you rely on them.

Employees have tax withheld from every paycheck. Business owners and freelancers usually do not, so the IRS expects them to pay during the year through estimated taxes.

This guide covers who pays, when payments are due and how the safe harbor rules work. It is general information, so check current IRS guidance and talk to a CPA about your own situation.

What are estimated taxes?

Estimated taxes are payments of income tax, and self-employment tax where it applies, on income that is not subject to withholding. Common examples are profit from a sole proprietorship, partnership or S corporation, freelance income, rental income and investment gains.

Individuals figure and pay estimated tax using Form 1040-ES. You can pay electronically through the IRS or by mail with a payment voucher.

When are the payments due?

For calendar-year individuals, the four federal due dates are April 15, June 15, September 15 and January 15 of the following year. If a date falls on a weekend or legal holiday, the deadline moves to the next business day.

Corporations follow a different schedule. A C corporation pays estimated tax on the 15th day of the 4th, 6th, 9th and 12th months of its tax year. Our business tax return deadlines guide shows how these dates fit with the annual returns.

How much should you pay?

The amount is based on your expected tax for the year. Many owners use the safe harbor rules instead of trying to predict income exactly. You generally avoid a penalty if your payments and withholding cover at least 90% of this year's tax or 100% of last year's tax.

If your prior-year adjusted gross income was over $150,000 ($75,000 if married filing separately), the prior-year safe harbor is 110%. For a rough starting number, try our estimated tax calculator, which gives an estimate and does not replace a full projection.

What if your income is uneven?

Seasonal businesses often earn most of their profit in a few months. The annualized income installment method lets you match payments to when income was actually earned, which can lower or remove a penalty for early installments.

This method uses Form 2210 and takes more record keeping. It works well when your books are current every quarter, which is part of how we approach tax planning.

How do estimated payments connect to your annual return?

Every estimated payment is a credit against the tax shown on your annual return. If you paid more than you owe, the excess can be refunded or applied to next year's estimates. If you paid less, the balance is due by the return's original due date.

The structure of your business also changes how you pay. S corporation owners who take a salary may cover part of their tax through payroll withholding. Our guide to choosing a sole proprietorship, LLC or S corp explains these differences.

Summary

Estimated taxes cover income that has no withholding, such as business or self-employment income.

Calendar-year individuals pay on April 15, June 15, September 15 and January 15.

Individuals use Form 1040-ES to figure and pay estimated tax.

Paying 90% of this year's tax or 100% of last year's tax generally avoids a penalty.

The prior-year safe harbor rises to 110% if your prior-year AGI was over $150,000.

Corporations pay estimates on the 15th of the 4th, 6th, 9th and 12th months of the tax year.

Frequently asked questions

Do I have to pay quarterly estimated taxes?

Generally, you need to make estimated payments if you expect to owe $1,000 or more when you file, after subtracting withholding and refundable credits. This often applies to sole proprietors, partners, S corporation shareholders and freelancers whose income has no tax withheld.

What happens if I miss an estimated tax payment?

The IRS can charge an underpayment penalty, which works much like interest on the amount that was late, for the period it was late. Paying as soon as possible limits the penalty. Each installment is measured separately, so a larger payment later in the year does not fully erase a shortfall in an earlier one.

What is the safe harbor for estimated taxes?

You generally avoid the penalty if your payments and withholding equal at least 90% of the current year's tax or 100% of the prior year's tax. If your prior-year adjusted gross income was over $150,000 ($75,000 if married filing separately), the prior-year figure becomes 110%.

Are the due dates really quarterly?

Not evenly. For calendar-year individuals the due dates are April 15, June 15, September 15 and January 15 of the following year, so the payment periods cover different numbers of months. When a due date falls on a weekend or legal holiday, it moves to the next business day.

Do I also owe state estimated taxes?

Many states that have an income tax also expect estimated payments, and their due dates often follow the federal schedule. Rules differ by state, so check your state department of revenue. North Carolina, for example, has its own estimated tax rules for individuals.