Making estimated tax payments is important since the U.S. tax system is "pay-as-you-go," meaning the IRS expects tax to be paid as income is earned — either through withholding or quarterly estimated tax payments.
As an employee, the government automatically withholds taxes from your paycheck based on your Form W-4. Also, retirees may have taxes taken from their Social Security benefits and retirement plan distributions.
However, what if you are self-employed or don't have taxes withheld from other sources of taxable income, like dividends, capital gains, interest, rental income, or alimony? In that case, you are responsible for making estimated tax payments to the IRS.
If you are making estimated payments, the next quarterly due date is January 15, 2026. Here's what else you need to know.
What are estimated tax payments?
Estimated tax payments are the taxes you pay to the IRS throughout the year to account for income you've earned that wasn't subject to tax withholding.
- When paying estimated taxes, you usually make four equal payments and follow the IRS's yearly schedule. (More on that below.)
- Estimated tax payments are commonly referred to as "quarterly" payments, even though they might not necessarily be three months apart or cover three months of income.
Final estimated tax payment for the 2025 tax year
If you're making estimated tax payments (more on that later), deadlines matter.
The fourth and final estimated tax payment for the 2025 tax year is due January 15, 2026. After that date, all estimated tax payments apply to the 2026 tax year.
Note: If you file your 2025 federal tax return and pay all taxes owed by February 2, 2026, you generally do not need to make the January 16, 2026, estimated tax payment.
Quarterly estimated tax payments: 2026 due dates
The table below shows the payment deadlines for 2026. (Note that some people will have extended IRS tax deadlines for estimated tax payments due to residing or working in IRS-designated disaster areas.)
Payment |
When Income Earned |
Due Date |
1st Quarter Payment 2026 |
Jan. 1 to March 31, 2026 |
April 15, 2026 |
2nd Quarter Payment 2026 |
Apr. 1 to May 31, 2026 |
June 15, 2026 |
3rd Quarter Payment 2026 |
June 1 to Aug. 31, 2026 |
Sept. 15, 2026 |
4th Quarter Payment 2026 |
September 1. to Dec. 31, 2026 |
Jan. 15, 2027 |
*If a due date falls on a weekend or federal holiday, the deadline is pushed to the next business day.
Sometimes, you can deviate from the set estimated tax payments schedule by following specific rules.
- For example, if you pay all your estimated taxes for the 2026 tax year before Tax Day (April 15), you will not have to make additional tax payments for the rest of the year.
- Additionally, if you submit your 2025 federal income tax return by Jan. 31, 2026, and pay the entire balance due, you won't have to make the final estimated payment for 2025, which would normally be due on Jan. 15, 2026.
Who must pay quarterly estimated taxes
You generally must make estimated tax payments if both of the following apply:
- You expect to owe at least $1,000 in federal tax for the year after subtracting withholding and refundable credits, and
- Your withholding and credits will be less than 90% of the tax you owe for the current year or 100% of the tax shown on your prior-year return (110% if your adjusted gross income (AGI) exceeded certain thresholds).
This requirement surprises some taxpayers because it isn’t limited to the self-employed.
- Self-employed workers, freelancers, and independent contractors whose income isn’t subject to withholding
- Investors who earn interest, dividends, or capital gains with little or no withholding
- Landlords or others receiving rental or royalty income
- Retirees receiving Social Security benefits, pension payments, or retirement account distributions without sufficient withholding
- Employees with wage income who underwithhold and expect to owe a significant amount at tax time
If you’re unsure whether you need to make estimated payments, IRS Publication 505 includes worksheets that can help you estimate your tax liability for the year.
Estimated Tax Rules for Farmers and Fishermen
If more than two-thirds of your income is from farming or fishing, you only need to make one estimated tax payment for the 2025 tax year, due by Jan. 15, 2026.
If you meet the farming/fishing income threshold and file and pay your taxes by Mar. 1, you don't need to make estimated payments.
How to calculate estimated taxes
To calculate your estimated tax payments, use Form 1040-ES.
- First, determine your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year.
- Then follow the instructions on the Form 1040-ES worksheet to assist you.
You can refer to your previous year's tax return as a general guide. Your goal is to estimate your expected annual income.
If you overestimated your tax, you can adjust your estimated tax payments using another Form 1040-ES worksheet.
You can also recalculate your tax estimate if your circumstances change or tax law changes impact your tax liability for the year.
How to pay estimated taxes to the IRS
Estimated tax payments can be made in several ways:
- Online through the IRS Direct Pay system
- By electronic funds withdrawal when filing electronically
- By mail using payment vouchers from Form 1040-ES
- Through the Electronic Federal Tax Payment System (EFTPS)
Paying electronically provides a confirmation record and helps reduce the risk of late or misapplied payments.
What happens if you don't pay enough estimated tax
Failing to pay enough taxes during the year can lead to IRS penalties. Even if you anticipate a refund when you eventually file your return, the IRS may penalize late or insufficient estimated tax payments.
Generally, the penalty is essentially interest on the amount you should have paid earlier. However, meeting one of the IRS “safe harbor” rules can help you avoid penalties, even if you still owe tax at filing time.
For example:
- if you've experienced an unexpected event like a casualty, disaster, or unusual circumstance.
- Or, if you're at least age 62, retired, or have become recently disabled, and your underpayment resulted from a "reasonable cause" and not "willful neglect."
Since these exceptions are limited, consider paying most of your tax liability for the year through withholding or estimated tax payments.
State Estimated Taxes
If you live in a state with income tax, remember that you might need to make estimated tax payments to your state as well.
The due dates for state payments may differ from the federal dates, so check with your state's tax agency.
Bottom line
Estimated tax payments aren’t just for the self-employed. Anyone with income that isn’t fully covered by withholding may need to pay quarterly to avoid penalties and surprises at tax time.
Review your income and withholding each year, especially if your financial situation changes, to determine whether estimated payments are required and how much to pay.
