Freelancer's Guide to Quarterly Estimated Taxes (Form 1040-ES)

7 min read · Updated September 2026

If you're self-employed and expect to owe $1,000+ in taxes for the year, the IRS requires you to pay estimated taxes quarterly. Miss a payment and you'll face penalties — even if you pay the full amount by April 15.

What Are Quarterly Estimated Taxes?

Unlike W-2 employees who have taxes withheld from every paycheck, freelancers and independent contractors must send tax payments to the IRS four times a year. This covers both income tax and self-employment tax (Social Security + Medicare).

2026 Quarterly Tax Due Dates

Period	Due Date
January 1 – March 31	April 15
April 1 – May 31	June 15
June 1 – August 31	September 15
September 1 – December 31	January 15 (next year)

If a due date falls on a weekend or holiday, it moves to the next business day.

How to Calculate Your Quarterly Payment

The safest approach is the "safe harbor" rule: pay at least 100% of last year's tax liability (110% if your AGI was over $150,000). Divide that by 4 and send it each quarter.

For a more precise estimate:

Estimate your annual net income — total freelance revenue minus business expenses
Calculate self-employment tax — 15.3% on the first $184,500 of net earnings, 2.9% above that
Estimate income tax — apply the federal brackets to your taxable income (after the ½ SE tax deduction and 20% QBI deduction)
Add state tax — varies by state (0% in TX/FL/WA to 13.3% in CA)
Divide by 4 — that's your quarterly payment

Calculate Your Quarterly Payment

Use our Freelancer Tax Calculator to get an instant estimate including quarterly payment amounts and due dates.

How to Pay

IRS Direct Pay — free, direct from your bank account at irs.gov/payments
EFTPS — Electronic Federal Tax Payment System (enroll at eftps.gov)
By mail — Form 1040-ES with a check (allow 2 weeks for delivery)
Credit/debit card — through approved payment processors (fees apply)

Underpayment Penalties

The penalty is essentially interest on the amount you should have paid each quarter. For 2026, the rate is approximately 8% annually. You can avoid penalties if you:

Pay at least 100% of last year's tax (110% if AGI > $150K)
Pay at least 90% of this year's actual tax
Owe less than $1,000 in tax for the year

Common Mistakes

Forgetting the June and September payments — they're easy to miss since they're not at quarter-end
Not accounting for state taxes — many states require separate quarterly payments
Using last year's income when this year is much higher — you'll owe a big bill in April plus penalties
Mixing personal and business expenses — makes it impossible to calculate accurate deductions

1099-K Threshold — the $600 Rule Never Happened

The federal 1099-K threshold is still more than $20,000 AND more than 200 transactions on a single platform; the $600 rule was delayed every year and finally repealed. You can owe tax on the profit even with no form at all. Use our 1099-K Tax Estimator to prepare.