# Estimated taxes: who must pay, when, and how much Source: https://taxbracketsdesk.com/estimated-taxes Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site Topic: Estimated Taxes Last updated: 2026-09-19 > You generally must pay estimated taxes for 2026 if you expect to owe at least $1,000 after withholding and refundable credits, and your withholding will cover less than 90% of your 2026 tax or 100% of your 2025 tax (110% if 2025 AGI topped $150,000). The four 2026 payments are due April 15, June 15 and September 15, 2026, and January 15, 2027. ## Key facts - Owe-at-least trigger: $1,000 after withholding and refundable credits - 2026 due dates: Apr 15, Jun 15, Sep 15, 2026; Jan 15, 2027 - Safe harbor: 90% of 2026 tax or 100% of 2025 tax (110% if 2025 AGI over $150,000) - Underpayment interest rate, 2026: 7% (Q1), 6% (Q2), 7% (Q3), 7% (Q4) - IRS form: Form 1040-ES, Estimated Tax for Individuals ## What are estimated taxes? Estimated taxes are payments you send the IRS during the year on income that has no tax withheld from it, such as self-employment and gig earnings, interest, dividends, rent, alimony and capital gains. The 2026 Form 1040-ES adds that people who skip voluntary withholding should also make estimated tax payments on unemployment compensation and the taxable part of Social Security benefits. The U.S. tax system is pay-as-you-go. Employers handle this for wages through withholding, but when nobody withholds for you, the IRS expects you to prepay in four installments. Paying too little, or paying late, can trigger an underpayment penalty even if you end up with a refund when you file. This hub covers the whole process for tax year 2026, the return you file in the 2027 season. Each section below links to a page that goes deeper on one step. ## Who has to pay estimated taxes? Under the general rule in IRS Publication 505 (2026), you must pay estimated tax for 2026 if both of these are true: you expect to owe at least $1,000 after subtracting withholding and refundable credits, and you expect your withholding and refundable credits to be less than the smaller of 90% of your 2026 tax or 100% of the tax on your 2025 return. There is one clean exception. If you were a U.S. citizen or resident alien for all of 2025 and had no tax liability for a full 12-month 2025 tax year, you do not have to pay estimated tax for 2026. No liability means your total tax was zero or you were not required to file. ### Can I avoid quarterly taxes by changing my withholding? Yes, if you also have a job or a pension. You can give your employer a new Form W-4 asking for extra withholding, use Form W-4P for pension or annuity payments, Form W-4V for certain government payments such as unemployment, or Form W-4R for nonperiodic payments like IRA withdrawals. Our [Form W-4 withholding guide](https://taxbracketsdesk.com/payroll-tax/w-4-withholding-guide) explains how to set the extra amount. Withholding has a timing advantage. For penalty purposes, the IRS treats income tax withheld during the year as paid in four equal parts on the four due dates, unless you choose to use the actual withholding dates (Instructions for Form 2210). Extra withholding taken in November can therefore cover a shortfall from April. ## When are estimated taxes due? For tax year 2026, estimated tax payments are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027 (IRS Form 1040-ES). The periods are uneven: the second payment covers only two months of income, and the fourth covers four. | Income earned | Payment | Due date | | --- | --- | --- | | January 1 to March 31, 2026 | 1st | April 15, 2026 | | April 1 to May 31, 2026 | 2nd | June 15, 2026 | | June 1 to August 31, 2026 | 3rd | September 15, 2026 | | September 1 to December 31, 2026 | 4th | January 15, 2027 | 2026 estimated tax periods and due dates (Pub. 505, 2026) You can skip the January payment if you file your 2026 return early and pay the full balance. Pub. 505 sets that filing date as January 31, 2027; because that is a Sunday, the 2026 Form 1040-ES prints February 1, 2027. Details, the weekend rule and fiscal-year dates are on our [2026 estimated tax due dates](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-due-dates) page. The 2027 Form 1040-ES has not been released yet; the IRS usually publishes it in January or February. The expected 2027 schedule, including a January 18, 2028 final payment caused by a weekend and a federal holiday, is on our [estimated tax due dates 2027](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-due-dates-2027) page. ## How much estimated tax do you have to pay? To avoid a penalty, your withholding plus estimated payments must reach the required annual payment: the smaller of 90% of your 2026 tax or 100% of your 2025 tax. If your 2025 adjusted gross income (AGI) was more than $150,000, or more than $75,000 if you file married filing separately for 2026, the prior-year figure becomes 110% (Form 1040-ES, 2026). Farmers and fishers who get at least two-thirds of their gross income from those activities use 66 2/3% instead of 90%, and the 110% rule does not apply to them. They also have a single January 15, 2027 due date, or no payment at all if they file and pay by March 1, 2027. The prior-year test is the easiest to hit because the number is already printed on last year's return. The trade-offs between the three percentages, and how a mid-year raise or a big capital gain changes the choice, are covered in our guide to the [safe harbor estimated tax rules](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-safe-harbor). ## How do I calculate estimated taxes? You calculate estimated taxes with the 2026 Estimated Tax Worksheet in Form 1040-ES: project your AGI, subtract deductions, apply the 2026 tax rate schedules, add self-employment tax and other taxes, subtract credits and withholding, then compare the result with your safe harbor. If your income is steady, you divide the required amount by four. ### Example: a retiree with IRA withdrawals Take a single filer age 67 who expects $48,000 of traditional IRA withdrawals with no withholding and $4,000 of bank interest in 2026. AGI is $52,000. The deductions are the $16,100 standard deduction, the $2,050 additional amount for an unmarried filer 65 or older, and the $6,000 senior deduction, which applies in full because income is under $75,000. 1. Taxable income: $52,000 minus $24,150 = $27,850. 2. Tax from the 2026 single schedule: $1,240 plus 12% of the $15,450 above $12,400 = $3,094. 3. 90% of 2026 tax: $2,784.60. Suppose the 2025 return showed $3,000 of tax. 4. Required annual payment: the smaller figure, $2,784.60, or about $696.15 per quarter. This retiree could instead ask the IRA custodian to withhold on Form W-4R. Because withholding counts as paid evenly, a single December withdrawal with enough withheld would also satisfy all four periods. To run your own numbers, use our [estimated taxes calculator](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-calculator), or follow the line-by-line walkthrough of [Form 1040-ES](https://taxbracketsdesk.com/estimated-taxes/form-1040-es-instructions). ## How do I pay estimated taxes? You can pay estimated taxes through your IRS Online Account, IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), a debit or credit card processor, or by mailing a check with a Form 1040-ES voucher. You can also apply part of last year's refund to this year's estimated tax on your return. | Method | Cost | Worth knowing | | --- | --- | --- | | IRS Online Account | Free | Shows 5 years of payment history, including pending and scheduled payments | | IRS Direct Pay | Free | No registration; keep the confirmation number to change or cancel | | EFTPS | Free | Enrollment required; suits scheduling all four payments in advance | | Debit card, credit card or digital wallet | Processor fee | The fee goes to the payment processor, not the IRS | | Check or money order with voucher | Postage | Payable to United States Treasury; write 2026 Form 1040-ES and your SSN | | Overpayment credit from 2025 return | Free | Treated as paid April 15, 2026 if the 2025 return was filed on time | Ways to pay 2026 estimated tax (Form 1040-ES, IRS Direct Pay help) Online Account and Direct Pay both let you schedule payments up to 365 days ahead and cancel a pending payment up to two days before its date. Do not send cash by mail, and do not mail estimated payments to the address in the Form 1040 instructions. ## What happens if you underpay estimated taxes? If you pay too little or too late, the IRS charges an underpayment penalty that works like interest: it is figured separately for each installment and runs for the number of days each shortfall stays unpaid. It can apply even when you are due a refund, because an early shortfall is not erased by paying extra later. The rate is the federal short-term rate plus 3 percentage points, reset each quarter. For 2026 the IRS underpayment rate is 7% for January to March, 6% for April to June, and 7% for both July to September and October to December. You figure or request relief from the penalty on Form 2210. The IRS can waive it if you retired after reaching age 62 or became disabled and the underpayment had reasonable cause, or if a casualty, disaster or other unusual circumstance made the penalty inequitable. People in federally declared disaster areas generally get relief applied automatically. ## Estimated taxes for freelancers and uneven income Self-employed people owe two taxes through their quarterly payments: income tax and self-employment tax, which is 15.3% of 92.35% of net profit (IRS Topic 554). The self-employment part often surprises new freelancers more than the income tax does. If your income is seasonal or arrives in a lump late in the year, the annualized income installment method lets you pay less in the early periods; you then attach Form 2210 with Schedule AI to your return. Worked freelancer numbers are on our page about [estimated taxes for self-employed](https://taxbracketsdesk.com/estimated-taxes/estimated-taxes-self-employed) workers. ## What if a payment does not show up? Check your IRS Online Account two business days after the scheduled payment date. If a payment is still pending after three more business days, it may have been returned, and you should pay again to limit penalties and interest. Checks can be converted to electronic debits, so look for a withdrawal on your bank statement rather than a returned check. Our guide to an [estimated tax payment not showing up](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-payment-not-showing) walks through tracing a missing or misapplied payment. ## Common questions ### Do I have to pay estimated taxes if I have a W-2 job and a side business? Only if your withholding will fall short. If your paycheck withholding covers at least 90% of this year's tax or 100% of last year's tax (110% above $150,000 AGI), or leaves less than $1,000 owed, you do not need quarterly payments. Raising withholding on a new Form W-4 is often simpler. ### Can I pay all my estimated taxes at once? Yes. Form 1040-ES allows you to pay the whole year's estimated tax by April 15, 2026. You can also make more than four payments, as long as the total paid by each due date meets that period's required amount. ### Are estimated taxes required if I will get a refund? If your withholding and credits already exceed your tax, you will not owe the $1,000 that triggers the requirement. But a refund at filing does not cancel a penalty for an earlier period in which you were behind. ### Do married couples pay estimated taxes together? Couples who will file jointly can make joint estimated payments, even if they live apart. They cannot if either spouse is a nonresident alien, they are separated under a divorce or separate maintenance decree, or they have different tax years. ### Is there a minimum estimated tax payment? There is no minimum payment size. The $1,000 figure is the threshold for being required to pay at all, not a floor on each installment. ## Sources - [Form 1040-ES (2026), Estimated Tax for Individuals](https://www.irs.gov/pub/irs-pdf/f1040es.pdf) - [Publication 505 (2026), Tax Withholding and Estimated Tax](https://www.irs.gov/pub/irs-pdf/p505.pdf) - [Instructions for Form 2210](https://www.irs.gov/pub/irs-pdf/i2210.pdf) - [Quarterly interest rates](https://www.irs.gov/payments/quarterly-interest-rates) - [Topic 554, Self-employment tax](https://www.irs.gov/taxtopics/tc554) - [Direct Pay help](https://www.irs.gov/payments/direct-pay-help)