The U.S. tax system is pay-as-you-go. Employees have taxes withheld from every paycheck. Self-employed people, freelancers, landlords, and investors with significant unwithheld income must send those payments directly to the IRS throughout the year. These are called estimated tax payments.
Who needs to pay estimated taxes
You must make estimated federal tax payments if both of the following apply:
- You expect to owe at least $1,000 in federal taxes after subtracting withholding and credits
- Your withholding and credits will cover less than 90% of your current year tax liability, or less than 100% of your prior year tax liability (110% if your prior year AGI exceeded $150,000)
The second condition gives you a safe harbor. If your total withholding and estimated payments equal at least what you owed last year, the IRS will not charge an underpayment penalty, even if you end up owing more this year. This is useful when your income is unpredictable.
Common situations requiring estimated payments:
- Freelance, consulting, or gig income with no withholding
- Business income from a sole proprietorship, partnership, or S corporation
- Significant capital gains from selling investments
- Rental income
- Alimony received under pre-2019 divorce agreements (still taxable under prior law)
2026 payment due dates
For tax year 2026, estimated payments are due:
| Payment period | Due date |
|---|---|
| January 1 to March 31 | April 15, 2026 |
| April 1 to May 31 | June 16, 2026 |
| June 1 to August 31 | September 15, 2026 |
| September 1 to December 31 | January 15, 2027 |
The second period covers only two months and the fourth covers four. Mark all four in your calendar at the start of the year.
If a due date falls on a weekend or federal holiday, the deadline shifts to the next business day. June 15, 2026 falls on a Sunday, which is why the June payment is due June 16.
How to calculate what to pay
Option 1: Safe harbor based on last year’s tax. Look at line 24 of your 2025 Form 1040 (total tax). Divide by four and pay that amount each quarter. If your 2025 AGI exceeded $150,000 (or $75,000 MFS), pay 110% of last year’s tax divided by four. This method requires no income tracking during the year.
Option 2: Estimate current year tax. Use the worksheet in Form 1040-ES to project this year’s income, deductions, and credits. Calculate your expected total tax, subtract any withholding, and divide the remaining amount into four payments. This takes more work but avoids overpaying if your income dropped from last year.
Most self-employed people use the safe harbor method for the first three quarters, then recalculate in the fall once they know how the year is shaping up.
How to make the payment
IRS Direct Pay (IRS.gov/directpay): Free, no registration required, pay directly from your checking or savings account. Select “Estimated Tax” as the reason and “1040-ES” as the form. You can schedule payments up to 30 days in advance.
IRS Online Account: At IRS.gov/account you can view your payment history, see applied payments, and pay directly.
EFTPS (Electronic Federal Tax Payment System): Free enrollment-based system at EFTPS.gov. Allows you to schedule multiple payments in advance, useful for setting all four quarterly payments at the start of the year.
Mail a check: Complete the Form 1040-ES voucher (downloadable from IRS.gov) and mail it with a check payable to “United States Treasury.” Write your SSN and “2026 Form 1040-ES” on the memo line.
Credit or debit card: The IRS authorizes several third-party processors to accept card payments, but they charge a convenience fee (typically 1.82% to 1.99% for credit cards). This erases most of the value unless you’re earning significant card rewards.
What happens if you miss or underpay
Underpayment results in an interest-based penalty calculated on the shortfall for each quarter. For 2026, the underpayment interest rate is tied to the federal short-term rate plus 3 percentage points (the IRS adjusts this quarterly).
You calculate the penalty on Form 2210 when you file your annual return. If you paid at least as much as last year’s total tax (the safe harbor), Form 2210 is not required and no penalty applies. If you missed a quarter, it’s better to catch up in the next quarter than to skip it entirely, since the penalty accrues by quarter.
Tracking for year-end
Keep a record of every estimated payment you make: the date, amount, and confirmation number. These payments are entered on your Form 1040 (Schedule 3, line 6) and reduce your balance due or increase your refund when you file your annual return.