Quarterly Estimated Taxes: How to Calculate and Pay
If you are self-employed or own a business, the IRS expects tax payments four times a year — not just in April. Here is exactly how it works.
2026 Quarterly Tax Deadlines
Q1 (Jan 1 – Mar 31)
Due April 15
Q2 (Apr 1 – May 31)
Due June 16
Q3 (Jun 1 – Aug 31)
Due September 15
Q4 (Sep 1 – Dec 31)
Due January 15 (next year)
How to Calculate Your Quarterly Payment
Estimate your annual net profit
Take your gross revenue minus all business deductions. This is your taxable income.
Calculate self-employment tax
Multiply net profit by 92.35%, then by 15.3%. This covers Social Security and Medicare.
Calculate income tax
Apply your marginal federal tax rate to your net profit (minus half of SE tax). Add state income tax.
Add them together and divide by 4
This is your quarterly estimated payment. Pay via IRS Direct Pay or EFTPS.
The Simple Rule: Set Aside 25–30%
Every time revenue hits your account, immediately transfer 25–30% to a dedicated tax savings account. Pay quarterly from that account. You will never be caught short at tax time.
Underpayment penalty
If you pay less than 90% of your current year tax or 100% of last year's tax, the IRS charges an underpayment penalty (currently ~8% annualized). Avoid it by using the "safe harbor" method — pay at least 100% of last year's total tax bill.