Contribution Deadlines with an Extension: IRA, HSA, SEP & Solo 401(k)

What Are Quarterly Estimated Taxes?

Quarterly estimated taxes are periodic payments made to the IRS by individuals whose income is not subject to regular withholding. Self-employed workers, freelancers, investors, and small business owners often need to pay these taxes to avoid penalties.

If you expect to owe at least $1,000 in federal income tax for the year after subtracting withholding and credits, the IRS requires you to make estimated tax payments.

Quarterly Estimated Tax Due Dates

Estimated taxes are paid in four installments each year. For the 2026 filing year, the due dates are:

• April 15, 2026 – 1st payment
• June 15, 2026 – 2nd payment
• September 15, 2026 – 3rd payment
• January 15, 2027 – 4th payment

Payments are generally due even if the date falls on a weekend or holiday. If so, the due date shifts to the next business day.

How to Calculate Estimated Taxes

You can calculate your estimated taxes using IRS Form 1040-ES. Most taxpayers calculate by estimating their annual income, deductions, credits, and taxes owed, then dividing by four.

The IRS safe harbor rules help you avoid penalties:

• Pay at least 90% of your current year’s tax liability, or
• Pay 100% of last year’s tax liability (110% if your AGI was over $150,000).

How to Pay Quarterly Estimated Taxes

The IRS offers several convenient payment methods:

• IRS Direct Pay – Pay directly from your bank account.
• Electronic Federal Tax Payment System (EFTPS) – Online system for individuals and businesses.
• Credit or Debit Card – Additional processing fees may apply.
• Mailing a check with Form 1040-ES payment voucher.

Tip: Paying online through Direct Pay or EFTPS ensures faster processing and immediate confirmation.

Frequently Asked Questions

Who needs to pay quarterly estimated taxes?

Anyone with income not subject to withholding – such as self-employed workers, gig economy earners, landlords, and investors – may need to pay estimated taxes if they expect to owe $1,000 or more.

Can I skip estimated payments if I file an extension?

No. An extension of time to file does not extend the time to pay. Estimated payments must still be made on time.

What happens if I don’t pay enough?

You may be subject to underpayment penalties and interest, even if you later pay in full when you file your return. The IRS provides penalty calculations in Form 2210.

Bottom Line

Quarterly estimated taxes are a must for self-employed taxpayers and others without sufficient withholding. Paying on time and meeting safe harbor rules helps you avoid costly penalties and surprises at tax time. To make a payment, start with the IRS Direct Pay tool or explore the EFTPS system.