Estimated tax payments

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Estimated tax payments

If your income isn't fully covered by withholding, you'll likely need to make quarterly estimated payments — here's everything you need to know.

Who needs to pay

Individual

You likely need to pay if you…

  • Are self-employed, freelance, or run a sole proprietorship
  • Receive significant investment, rental, or dividend income
  • Have capital gains from asset sales
  • Receive retirement or pension income without withholding
  • Expect to owe at least $1,000 after subtracting withholding and credits
Business

Corporations must pay if…

  • The corporation expects to owe at least $500 in federal income tax for the year
  • Applies to C corps on Form 1120-W
  • S corps, partnerships, and LLCs generally don't pay corporate estimated tax — the obligation flows to the individual owners

2026 quarterly schedule

Due date Income period Individual (1040-ES) C corp (1120-W)
Apr 15
Jan 1 – Mar 31
Q1 payment
Q1 payment
Jun 15
Apr 1 – May 31
Q2 payment
Q2 payment
Sep 15
Jun 1 – Aug 31
Q3 payment
Q3 payment
Jan 15 '27
Sep 1 – Dec 31
Q4 payment
Dec 15 '26 →

† C corps pay Q4 on December 15, 2026, not January 15. The January date applies to individuals only.

How much do you need to pay?

You avoid underpayment penalties if you meet either of these two "safe harbor" thresholds:

Option A — Prior-year safe harbor

100% of last year's tax
Pay at least as much as your total 2025 tax liability across four installments. If your 2025 AGI exceeded $150,000 (married filing jointly: $150,000), this rises to 110%.

Option B — Current-year safe harbor

90% of this year's tax
Pay at least 90% of what you'll actually owe for 2026. This requires estimating your current-year income — useful if your income dropped significantly from last year.
Most people find the prior-year safe harbor easier to calculate and less risky. If last year's return is available, divide your total tax by four and pay that amount each quarter.

Quick quarterly estimate

How to pay

IRS Direct Pay Free · no enrollment · schedule up to 365 days ahead IRS Online Account Free · view payment history EFTPS Free · best for businesses & recurring payments Card / digital wallet ~1.75–1.85% fee · works without a US bank account

Compare all options, including international wire, on our Payment Options page →

If you live abroad

The automatic 2-month extension for overseas taxpayers applies to your filing deadline only — it does not move your estimated tax due dates. Q1 and Q2 payments are still due April 15 and June 15, and interest accrues from those dates on any shortfall.

Without a US bank account, the easiest path is paying by card through an IRS-approved processor ↗. International wire is also an option — see our Payment Options page for the routing details.

Underpayment penalty

If you don't pay enough through withholding or estimated payments, the IRS charges an underpayment penalty calculated using the current federal short-term rate plus 3%. It's applied separately to each quarter's shortfall — a large catch-up payment in Q4 won't offset the interest that accrued on earlier quarters.

You can waive or reduce the penalty in certain situations (unusual income, casualty, retirement after age 62, first-year estimated tax filers) using Form 2210 ↗.

Frequently asked questions

Yes. Estimated payments and filing are separate obligations. Your payments reduce the amount you owe (or increase your refund), but they don't substitute for filing your annual return.
You can use the "annualized income installment method" (via Form 2210) to calculate each quarter's payment based on the income you actually earned in that period, rather than dividing your annual estimate by four. This helps self-employed individuals and investors avoid overpaying early quarters when income is uneven.
Yes, as long as your total withholding meets the safe harbor threshold. Unlike estimated payments, withholding is treated as paid evenly throughout the year regardless of when it was actually withheld. So increasing your W-4 withholding late in the year can still satisfy the requirement for earlier quarters.
Individuals use Form 1040-ES, though payment via IRS Direct Pay or your Online Account doesn't require submitting the paper form — you just enter the tax year and payment type when prompted. C corporations use Form 1120-W as a worksheet to calculate the amount.
The overpayment is credited against your final balance when you file. You can either take it as a refund or apply it toward your next year's estimated payments.

This page reflects 2026 rules and due dates for calendar-year taxpayers. Dates for fiscal-year filers differ. Always confirm current thresholds at irs.gov or with your tax advisor.