# Estimated taxes for self-employed workers: what to pay each quarter

Source: https://taxbracketsdesk.com/estimated-taxes/estimated-taxes-self-employed
Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site
Topic: Estimated Taxes
Last updated: 2026-09-19

> Estimated taxes for self-employed people must cover both federal income tax and self-employment tax of 15.3% on 92.35% of net profit. A single freelancer with $80,000 of 2026 profit and no other income owes about $16,647 in total, so paying 90% of that means roughly $3,746 each quarter, unless last year's tax gives a lower safe harbor.

## Key facts

- Self-employment tax rate: 15.3% on 92.35% of net profit
- SE tax threshold: Net SE earnings of $400 or more
- Social Security wage base, 2026: $184,500
- $80,000 profit, single, 2026: About $16,647 total federal tax (20.8% of profit)
- Uneven income option: Annualized installment method, Form 2210 Schedule AI

## What do estimated taxes for self-employed people include?

Estimated taxes for the self-employed cover every federal tax on business income that nobody withholds: regular income tax, self-employment (SE) tax, and, at higher incomes, the 0.9% Additional Medicare Tax. The SE tax goes on line 9 of the Form 1040-ES worksheet and is part of the amount your quarterly payments must cover.

SE tax is 12.4% for Social Security plus 2.9% for Medicare, applied to 92.35% of net profit, and it is owed once net SE earnings reach $400 (IRS Topic 554). The 12.4% part stops at the 2026 wage base of $184,500, reduced by any W-2 wages you earn. Our [self-employment tax rate](https://taxbracketsdesk.com/payroll-tax/self-employment-tax-rate) page explains each piece.

Two deductions soften the income tax. Half of your SE tax is subtracted when figuring AGI, and many sole proprietors can take the qualified business income (QBI) deduction of up to 20% of qualified business income, which is limited to 20% of taxable income before that deduction. The QBI deduction goes on line 2b of the worksheet.

## Example: quarterly taxes for a self-employed designer

A single freelance designer expects $80,000 of net profit on Schedule C for 2026 and has no other income, credits or withholding. Here is the 2026 math using Form 1040-ES figures.

| Step | Amount |
| --- | --- |
| Net earnings from self-employment ($80,000 x 92.35%) | $73,880.00 |
| Social Security part (12.4%) | $9,161.12 |
| Medicare part (2.9%) | $2,142.52 |
| Self-employment tax | $11,303.64 |
| AGI ($80,000 minus half of SE tax, $5,651.82) | $74,348.18 |
| Standard deduction | $16,100.00 |
| QBI deduction (limited to 20% of $58,248.18) | $11,649.64 |
| Taxable income | $46,598.54 |
| Income tax ($1,240 + 12% of amount over $12,400) | $5,343.82 |
| Total federal tax | $16,647.46 |

2026 estimated tax for $80,000 of self-employment profit, single filer

Ninety percent of $16,647.46 is $14,982.71, or $3,745.68 per quarter. If the designer's 2025 return showed only $12,000 of total tax, the prior-year safe harbor is $12,000, or $3,000 per quarter, and the remaining $4,647.46 is paid with the return without penalty.

## What percentage should self-employed workers set aside?

There is no single correct percentage, because income tax rises with profit while SE tax stays near a flat 14.13% of profit below the wage base. Running the same 2026 method at three profit levels for a single filer with no other income shows the spread.

At $40,000 of profit the total is $7,426.93 (18.6%); at $80,000 it is $16,647.46 (20.8%); at $150,000 it is $37,607.63 (25.1%). Those figures exclude state and local tax, and they change with filing status, other income and credits. A married freelancer whose spouse has a salary could land in a higher bracket at the same profit.

A practical routine is to move your own percentage of every client payment into a separate savings account the day it arrives, then pay each quarter from that account. Recheck the percentage after each quarter using our [estimated taxes calculator](https://taxbracketsdesk.com/estimated-taxes/estimated-tax-calculator).

## What if my 1099 income is uneven?

If your income is seasonal or lumpy, the annualized income installment method can lower the early payments. Instead of dividing the year's tax by four, you figure tax on the income actually earned through the end of each period, scaled up to a full year, then pay the matching share (Pub. 505, Worksheet 2-9).

| Period ends | Income counted | Multiply by | Share of tax due |
| --- | --- | --- | --- |
| March 31 | January to March | 4 | 22.5% |
| May 31 | January to May | 2.4 | 45% |
| August 31 | January to August | 1.5 | 67.5% |
| December 31 | Full year | 1 | 90% |

How the annualized method scales income (Pub. 505, 2026)

A wedding photographer who earns most of the year's profit from June to October would owe little in April and June under this method, then catch up in September and January. The trade-off is paperwork: you must attach Form 2210 with Schedule AI to your return to show the IRS why your early payments were smaller.

The opposite also happens. If a large contract lands in July, refigure your estimate and pay the extra by the next due date. Waiting until January can leave a penalty for September.

## Should a gig worker with a W-2 job pay quarterly taxes?

Not necessarily. If you also have a paycheck, you can cover your side income by raising withholding on a new Form W-4. Withholding counts as paid evenly through the year, so a change made in October still covers the earlier quarters for penalty purposes.

Your W-2 wages also use up part of the $184,500 Social Security wage base, which lowers the 12.4% portion of SE tax on side earnings once combined earnings pass that level. If combined wages and SE income exceed $200,000 single ($250,000 joint), include the [Additional Medicare Tax](https://taxbracketsdesk.com/payroll-tax/additional-medicare-tax) in your estimate.

## A quarterly routine for 1099 estimated taxes

Log each payment in the Record of Estimated Tax Payments on page 12 of Form 1040-ES or your own spreadsheet. For the full worksheet, see our [Form 1040-ES walkthrough](https://taxbracketsdesk.com/estimated-taxes/form-1040-es-instructions); for dates and payment methods, see the [estimated taxes guide](https://taxbracketsdesk.com/estimated-taxes).

## Common questions

### Do I pay self-employment tax through estimated payments?

Yes. Self-employment tax is part of the total your estimated payments must cover. It goes on line 9 of the 2026 Estimated Tax Worksheet alongside income tax.

### Do I owe estimated taxes on my first year of freelancing?

If you had no tax liability in 2025, you do not have to pay 2026 estimated tax. If you owed tax in 2025, you likely need to pay at least 100% of that amount (110% above $150,000 AGI) through withholding and payments.

### Are 1099-K payments included in estimated taxes?

Estimated taxes are based on net profit, not the gross amount reported on Forms 1099-K or 1099-NEC. Subtract business expenses first, then apply the self-employment and income tax calculation.

### Can I deduct my estimated tax payments as a business expense?

No. Federal estimated tax payments are prepayments of your own income and self-employment tax, not business expenses. Half of the self-employment tax itself is deductible when figuring AGI.

### What if I overpay estimated taxes as a freelancer?

The excess comes back as a refund when you file, or you can apply it to next year's estimated tax. Credited to next year on a timely return, it counts as paid on April 15.

## Sources

- [Topic 554, Self-employment tax](https://www.irs.gov/taxtopics/tc554)
- [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)
- [Qualified business income deduction](https://www.irs.gov/newsroom/qualified-business-income-deduction)