Calculate exactly how much to pay in estimated taxes each quarter. Never get caught off guard by a big tax bill again.
Unlike W-2 employees who have taxes withheld from each paycheck, freelancers and self-employed individuals are responsible for paying their own taxes throughout the year. The IRS requires these payments quarterly to ensure they receive tax revenue steadily, not just once a year.
Quarterly estimated taxes are how the IRS implements "pay-as-you-go" taxation for self-employed workers. You estimate your annual income, calculate the taxes owed, and pay 25% each quarter.
To avoid underpayment penalties, you can either pay 100% of last year's tax liability or 90% of this year's expected liability. If your AGI was over $150,000 last year, you need to pay 110% of last year's liability for safe harbor protection.
Quarterly estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year. For 2026, the dates are: Q1 (Jan-Mar) due April 15, 2026; Q2 (Apr-May) due June 15, 2026; Q3 (Jun-Aug) due September 15, 2026; Q4 (Sep-Dec) due January 15, 2027.
You must pay quarterly estimated taxes if you expect to owe $1,000 or more in taxes for the year. This typically applies to freelancers, independent contractors, self-employed individuals, and anyone with significant income not subject to withholding.
The IRS charges an underpayment penalty if you don't pay enough estimated tax throughout the year. The penalty is calculated based on the federal short-term interest rate plus 3%. Paying late is better than not paying at all—the penalty accumulates daily.
Estimate your total annual tax liability (including self-employment tax, federal income tax, and state tax), then divide by 4. Our calculator does this automatically based on your expected income and expenses.
Yes! If your income changes significantly, you can adjust future quarterly payments. Many freelancers have variable income—WorkMade recalculates your payments automatically as your actual income comes in.
WorkMade calculates your quarterly taxes automatically based on your real income. We even pay them for you if you want.
Start Free Trial