Quarterly Estimated Taxes 2026: Who Needs to Pay & When

Everyone in the US has to pay taxes each April. But you might be one of the lucky people who get to pay them every four months as well.  

Whether you're aware of it or not, your employment or withholding situation may require you to file quarterly tax returns and pay an estimated amount based on your income.

Before you miss a deadline, you need to know:

• If you’re required to file quarterly estimated taxes, and by when

• How to calculate what you owe

• The penalties for not filing on time

What are Quarterly Estimated Taxes?

Quarterly estimated taxes are those you pay when your income doesn’t already have withholdings each month. This is so the IRS collects your taxes as you earn income, the way they would if taxes were already withheld by an employer. 

Estimated taxes cover federal income tax and a 15.3% self employment tax (12.4% for social security and 2.9% for Medicare). You’ll generally pay around 20-25% percent of your income each quarter.

You’ll be obligated to file each quarter if you meet certain criteria.

Who Needs to Pay Quarterly Estimated Taxes?

The most common taxpayers who must file quarterly are self-employed workers, freelancers, and independent contractors. This includes sole proprietors, partners, and S corporation shareholders.

You may also need to file if you: 

• Receive rental or royalty income

• Receive Social Security or pension payments without significant withholdings

• Underwithhold your W-2 income 

Generally, you’ll need to follow the IRS’s threshold rule when it comes to paying taxes on income without existing tax withholdings: if you earn more than $400 net and expect to owe $1,000 or more in federal income taxes for the year, after subtracting withholding and credits.

When are Quarterly Estimated Taxes Due?

There are four key deadlines to pay your quarterly taxes by:

• April 15th (income earned Jan 1–Mar 31)

• June 16th (income earned Apr 1–May 31) 

• September 15th (income earned Jun 1–Aug 31)

• January 15th of the following calendar year  (income earned Sep 1–Dec 31)

You can always reference the IRS tax calendar to confirm payment deadlines. 

To avoid surprises, you’ll need to know how to calculate your estimated tax each quarter.

How to Calculate Quarterly Estimated Taxes

There are two main ways you can figure out what you’ll owe the IRS each quarter.

1. The Prior-Year Safe Harbor

The IRS Safe Harbor Rule helps you avoid underpayment penalties by paying the smaller of 90% of your expected current year tax liability or 100% of last year's tax liability.  That rate rises to 110% if your prior year adjusted gross income was more than $150,000.

Many self-employed taxpayers favor this method because they know the exact method to base their estimations on without any guesswork.

2. Estimate Your Yearly Income

Your other option would be to take the total amount you expect to make for the year and divide it by four, sending 25% to the IRS each quarter. This is a good option if your income is relatively consistent throughout the year.

You can use Form 1040-ES to figure out what you may owe. 

If you miss a payment or file incorrectly, you can face financial penalties.

What Happens If You Miss a Quarterly Tax Payment?

If you underpay, pay late, or ignore a quarterly tax deadline, the IRS can charge you a penalty in the form of interest on the underpaid amount, accruing from the missed due date. Even if you're due a refund at the end of the year, the penalty can apply and dig into that amount. 

Aside from Federal penalties, local tax agencies on Long Island and other areas of New York can levy their own underpayment penalties as well.

Not Sure What You Owe? Let AVM DeMars Help

Quarterly estimated taxes can be a stressful guessing game, but they don't have to be when you have the right team on your side.

The tax advocacy team at AVM DeMars has been helping business owners, freelancers, and individuals across Long Island and Manhattan stay ahead of their tax obligations before deadlines become a problem. 

If you're unsure how to approach quarterly tax estimates or need to resolve issues that came from a missed payment, we’re here for you. 

Contact our team to schedule a consultation today.