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When you’re self-employed, no employer is withholding taxes from your pay — so the IRS expects you to pay as you go, in four installments through the year. Here’s who needs to, when payments are due, and how to avoid penalties.
Who has to pay?
Generally, you should make quarterly estimated payments if you expect to owe $1,000 or more when you file (after any withholding and credits). That commonly includes freelancers, gig workers, sole proprietors, partners, S-Corp shareholders, landlords, and investors. Separately, once your net self-employment earnings reach $400, you owe self-employment tax.
What the payments cover
Estimated payments cover both your income tax and your self-employment tax — the 15.3% (12.4% Social Security + 2.9% Medicare) that replaces the payroll taxes an employer would normally split with you.
2026 due dates
- Q1: April 15, 2026
- Q2: June 15, 2026
- Q3: September 15, 2026
- Q4: January 15, 2027
How much should you pay? (the “safe harbor”)
To avoid an underpayment penalty, aim to pay at least one of the following through the year:
- 90% of the tax you’ll owe for the current year, or
- 100% of last year’s total tax — or 110% if your prior-year adjusted gross income was over $150,000 ($75,000 if married filing separately).
The worksheet in IRS Form 1040-ES helps you estimate the amount. A common rule of thumb is to set aside roughly 25–30% of your self-employment income for taxes, but your actual rate depends on your situation.
How to pay
You can pay online through IRS Direct Pay or EFTPS, or by mailing a 1040-ES voucher. Our Resources page links straight to the official IRS payment tools.
A few tips
- Keep clean books so each quarter’s estimate is based on real numbers — our bookkeeping service makes this painless.
- Re-check mid-year if your income jumps or drops; you can adjust the remaining payments.
- Don’t skip Q4 — a strong end to the year can create a surprise balance due.
Not sure what your quarterly number should be? We help freelancers and small-business owners estimate payments, stay penalty-free, and plan ahead. See our tax services or request a consultation.
Sources & disclaimer: Thresholds, due dates, and safe-harbor rules are from the IRS estimated taxes guidance and Form 1040-ES. This article is general information, not tax advice; confirm the details for your situation with a tax professional.