Quarterly estimated taxes for freelancers: when to pay and how much

If you work for yourself in the US, nobody withholds tax from your payments. The IRS expects you to send it in yourself, four times a year. Those four payments are called quarterly estimated taxes, and missing them is how a good freelance year turns into a bad April.

Here is how they work: who has to pay, what each date actually covers, how much to send, and the simplest way to pay.

Who has to pay

The IRS says individuals, including sole proprietors, generally need to make estimated payments if they expect to owe $1,000 or more in tax when they file their return. That is tax after withholding and credits, so if you also have a job that withholds, some of the bill is already covered.

A first freelance year catches people out because the tax that used to come off every paycheck is now yours to pay. There are exceptions, and the IRS lists them on its estimated taxes page, but if you expect a real tax bill, plan on paying quarterly.

The four dates, and what each one covers

The year is split into four payment periods, and each has its own due date. They are not evenly spaced.

• Income from January 1 to March 31: due April 15.
• Income from April 1 to May 31: due June 15.
• Income from June 1 to August 31: due September 15.
• Income from September 1 to December 31: due January 15 of the following year.

For the 2026 tax year, that means April 15, June 15, September 15, and January 15, 2027. If a due date lands on a weekend or legal holiday, your payment is on time if you make it the next business day.

The June date covers only two months of income, so it tends to arrive sooner than people expect. The January date covers four months and lands after the year has ended, which is why it is the one most often forgotten.

How much to pay

There are two ways to decide, and you can use either one.

The first is to base it on last year. The IRS generally treats you as safe from the underpayment penalty if you pay at least 90% of this year's tax or 100% of last year's tax, whichever is smaller. For many freelancers that means taking last year's total tax, dividing it by four, and sending that amount each quarter. Different rules apply to higher-income taxpayers, so check yours with an accountant or in IRS Publication 505.

The second is to base it on this year. Work out your profit so far, multiply it by the percentage you set aside for tax, and pay that. The worksheet in Form 1040-ES walks through the full version, and the calculator below does the quick one.

If your income is lumpy, and for most freelancers it is, you do not have to send four equal payments. The IRS says you can pay weekly, biweekly or monthly, as long as you have paid enough by the end of each period. There is also an annualized method, using Form 2210, for uneven income that can reduce a penalty. It is worth asking an accountant about once, before it matters.

How to pay

You can pay online, by phone, or through the IRS app, including from your IRS online account at IRS.gov/account. If you would rather mail a check, use the voucher that comes with Form 1040-ES.

Whichever way you pay, keep the confirmation. You will need the dates and amounts at tax time, and your accountant will ask for them.

Many states with an income tax have their own estimated payment rules, often on similar dates. The IRS payment does not cover your state, so check your state's revenue department site.

What happens if you miss one

The IRS charges an underpayment penalty, worked out period by period. It generally behaves more like interest than a flat fine, so a payment that is a few weeks late costs less than one you skip all year. That is not a reason to stop paying. It is a reason to catch up quickly if you fall behind.

The mistakes that cost freelancers the most

• Forgetting January. The fourth payment arrives during the holidays, after the year is over, and it is the one people skip.
• Keeping the tax money in the spending account. If it sits next to the rent money, it gets spent. Move it to a separate account the day a payment clears.
• Paying only the federal bill. Many states want their own payment too.
• Waiting for an exact number. A reasonable estimate paid on time beats a perfect one paid late. You can adjust in the next period.

Making it boring

The system is the same one from the guide on how much to set aside: pick a rate, move that share the day you get paid, and send the quarter's total on the due date. The Tax set-aside tab in the Quarterly workbook shows the running total by quarter, so on each due date you can see what is already sitting in savings and what to send.

This is general information for US freelancers, not tax advice. Rules and thresholds change, so check the IRS estimated taxes page or ask an accountant before you pay.