Quarterly Estimated Taxes for Freelancers: Dates, Safe Harbor and a Worked Example
General information for US federal taxes, tax year 2026. Not tax advice. Rules and dates change; confirm on IRS.gov or with a tax professional.
Employees have tax withheld from each paycheck. Freelancers do not, so the IRS expects you to pay during the year through estimated tax payments, usually four a year.
Do you have to pay?
The IRS says individuals, including sole proprietors, "generally have to make estimated tax payments if they expect to owe tax of $1,000 or more" for the year. That $1,000 is the tax you expect to owe after subtracting withholding and credits. If you also have a job with withholding, you can sometimes raise that withholding instead of paying estimates.
The four payment dates
The year is split into four payment periods. The usual due dates are:
| Period | Income earned | Usual due date |
|---|---|---|
| 1 | Jan 1 to Mar 31 | April 15 |
| 2 | Apr 1 to May 31 | June 15 |
| 3 | Jun 1 to Aug 31 | September 15 |
| 4 | Sep 1 to Dec 31 | January 15 of the next year |
When a date falls on a weekend or holiday, it moves to the next business day. Confirm the exact dates for the year on IRS.gov.
The safe harbor: how not to be penalized
You generally avoid the underpayment penalty if you owe less than $1,000 after withholding and credits, or if you pay at least the smaller of:
- 90 percent of this year's tax, or
- 100 percent of last year's tax (the IRS applies a higher percentage for higher-income taxpayers; the usual figure is 110 percent when last year's adjusted gross income was above $150,000).
The "100 percent of last year" route is popular with freelancers because it gives you a fixed number to pay even if this year's income jumps. You may still owe the balance in April, but not a penalty. If your income is falling, the 90 percent test may give a lower number.
Worked example
Suppose last year's total federal tax was $16,000 and you want the safe harbor with the 100 percent rule.
| Item | Amount |
|---|---|
| Last year's total tax | $16,000 |
| Four equal payments | $4,000 each |
| Paid by Apr 15, Jun 15, Sep 15, Jan 15 | $16,000 total |
If this year turns out better and your actual tax is $20,000, you still owe the extra $4,000 at filing, but the penalty should not apply because you met the safe harbor. Confirm the details with a professional.
How to pay
The IRS offers online payment options and a form (1040-ES) for estimates; see the IRS page for current methods. Many states also have their own estimated tax rules and dates, which we do not cover.
Working out the amount
Use our tax set-aside calculator with your expected profit to see how much self-employment tax and income tax to plan for. The worked example guide explains the math. Keep a separate tax savings account and move money every time you are paid, so each payment date is not a surprise.
Tracking income so the numbers are right
Estimates depend on knowing your profit so far. Accounting software such as FreshBooks or QuickBooks Online produces profit reports from your invoices and expenses; see our pricing comparison. A simple spreadsheet also works, see whether you need software at all.