Estimated tax is income tax, plus self-employment tax, that you pay during the year instead of all at once when you file. The IRS runs a pay-as-you-go system: tax is due as income arrives. A paycheck gets that through withholding. Business income does not, so you send it in four payments.
Who has to pay
- Individuals (sole proprietors, partners, S corporation shareholders) generally pay if they expect to owe $1,000 or more when the return is filed. They figure it on Form 1040-ES.
- Corporations generally pay if they expect to owe $500 or more, and figure any penalty on Form 2220. The IRS estimated taxes page covers how a corporation pays.
Farmers, fishers and certain higher-income taxpayers have different rules. Self-employment tax is part of what you estimate: it applies once net earnings from self-employment reach $400, at 15.3%.
The tax year 2026 calendar
| Payment | Due |
|---|---|
| First | April 15, 2026 |
| Second | June 15, 2026 |
| Third | September 15, 2026 |
| Fourth | January 15, 2027 |
If a date lands on a Saturday, Sunday or legal holiday, a payment is on time the next day that is not one. File your 2026 tax return by February 1, 2027 and pay the whole balance with it, and you don’t need the fourth payment; the 2026 Form 1040-ES gives that date because January 31 falls on a Sunday. Farmers and fishers with at least two-thirds of gross income from farming or fishing have one date: January 15, 2027.
The tax year 2027 dates publish with the 2027 Form 1040-ES, which the IRS had not released when this page was checked.* They usually follow the same pattern, but confirm them on the IRS page before you plan around them.
The safe harbor rules
You generally avoid the underpayment penalty if you owe less than $1,000 after withholding and refundable credits. You also avoid it if withholding and estimated payments total at least:
- 90% of this year’s tax, or
- 100% of the tax on last year’s return, if it covered all 12 months.
Pay whichever is smaller. If your adjusted gross income last year was more than $150,000 ($75,000 if married filing separately), the prior-year test is 110% instead. For tax year 2026 that means your 2025 adjusted gross income.
How to pay
- IRS Direct Pay takes the payment from your bank account for estimated tax and other federal income tax.
- Your IRS online account shows your payment history beside the payment form.
- Businesses can pay through their business tax account. Some business payments must go through the Electronic Federal Tax Payment System (EFTPS), which the IRS estimated taxes page explains.
- By mail, send Form 1040-ES with a check. The same page has the instructions.
Many states want their own estimated payments on their own dates. Your state’s tax agency sets them: start from your state’s Stay compliant page.
What happens if you miss one
The IRS charges an underpayment penalty. You figure it on Form 2210. It depends on the size of the shortfall, how long it stayed unpaid and the IRS’s published quarterly interest rates for underpayments. The rates change, so use the IRS’s penalty page. The IRS also charges interest on penalties.
If you have a W-2 job
You can skip estimated payments by asking your employer to withhold more tax from your earnings. Extra withholding counts toward the safe harbor tests. Whether that covers your side income depends on your numbers, so ask a CPA. Small Business Taxes lists the other federal deadlines.
Do this
- Decide if you expect to owe $1,000 or more for tax year 2026. Use the worksheet in Form 1040-ES from the IRS estimated taxes page.
- Pick a safe harbor target. Compare 90% of this year’s tax with 100% of last year’s in Publication 505.
- Pay on each date in the calendar above with IRS Direct Pay or your IRS online account. For the January payment, filing your 2026 return by February 1, 2027 and paying the balance counts instead.
- Put each payment on a calendar and add your state’s dates from your state’s Stay compliant page.
- Check the penalty if you fell short. The IRS penalty page points to Form 2210.
This step, state by state
Common questions
Do I have to pay quarterly taxes on my side business?
Generally yes, if you expect to owe $1,000 or more in tax when you file, after withholding and credits. Sole proprietors, partners and S corporation shareholders all fall under this rule.
When are quarterly estimated taxes due in 2026?
The four payments for tax year 2026 are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. If a date lands on a weekend or legal holiday, the next business day counts.
What is the safe harbor for estimated taxes?
You generally avoid the underpayment penalty if withholding and estimated payments add up to at least 90% of this year's tax or 100% of last year's, whichever is smaller. The prior-year test is 110% for higher income.
How do I pay estimated taxes to the IRS?
Online with IRS Direct Pay or your IRS online account, by mail with Form 1040-ES, or through your business tax account. Some business payments must go through EFTPS.
What is the penalty for missing an estimated tax payment?
The IRS figures it on Form 2210 from the amount of the underpayment, how long it was unpaid and its published quarterly interest rates for underpayments. The IRS page on the penalty has the current rates.
Can I skip estimated taxes if I have a W-2 job?
You can ask your employer to withhold more tax from your paychecks, which can cover the tax on side income. Withholding counts toward the safe harbor tests the same way estimated payments do.