Estimated taxes: who pays them and when they are due
If tax is not withheld from your income — self-employment, interest, dividends, rent — you pay in during the year using Form 1040-ES. Due dates and how it works.
Sourced from official pages · Updated September 30, 2026💡 Key takeaways
- Estimated tax is for income with no withholding: self-employment, interest, dividends and rent.
- Payments are due April 15, June 15, September 15 and January 15.
- You can also cover the shortfall by increasing withholding at a job.
- Underpaying can trigger a penalty.
What estimated tax is
Estimated tax is how you pay tax on income that has no withholding, such as self-employment earnings, interest, dividends and rent. You figure it with Form 1040-ES and pay in installments during the year.
Due dates for calendar-year taxpayers
| Installment | Due date |
|---|---|
| 1st | April 15 |
| 2nd | June 15 |
| 3rd | September 15 |
| 4th | January 15 of the next year |
If a due date falls on a Saturday, Sunday or legal holiday, the payment is on time if made on the next day that is not.
How to estimate
- Project your income, deductions and credits for the year.
- Work out the tax, plus Social Security and Medicare (self-employment) tax if it applies.
- Subtract expected withholding and credits, then divide what is left across the installments.
Avoiding the underpayment penalty
IRS explains that you can also cover the shortfall by increasing withholding at a job (Form W-4), which is treated as paid evenly through the year. See the IRS guide “Pay as you go, so you won’t owe” for the current safe-harbor rules.
A simple way to estimate
- Estimate this year’s total income and deductions.
- Compute income tax plus self-employment tax if it applies.
- Subtract withholding and credits.
- Divide the balance into four payments.
- Pay online with IRS Direct Pay or from your IRS online account.
Uneven income
If your income is seasonal, you may be able to use the IRS annualized method instead of equal payments. See the instructions to Form 1040-ES and Form 2210.
Keep records
Keep a log of each payment date and amount. Match it to your return when you file.
🔤 Key terms
| Term | Meaning |
|---|---|
| Form 1040-ES | Estimated tax payment worksheet and vouchers |
| Safe harbor | A payment level that avoids a penalty under IRS rules |
| Annualized income method | A method for uneven income |
| Underpayment penalty | Interest-like charge for paying too little during the year |
⚠️ Common mistakes to avoid
- Skipping the payment in a quarter with low income and paying a penalty.
- Forgetting self-employment tax when estimating.
- Paying state and federal amounts to the wrong agency.
- Missing the January 15 payment.
🛠️ Try it yourself
❓ Frequently asked questions
Do I need to pay estimated tax if I have a job?
Not necessarily; if your withholding covers your tax, you do not. Use the IRS Tax Withholding Estimator to check.
What if a due date falls on a weekend?
The payment is on time if made on the next day that is not a Saturday, Sunday or legal holiday.
Where do I pay?
Through IRS Direct Pay, an IRS online account or by mailing a voucher.
What if I overpay?
You can apply the overpayment to next year or receive a refund.
📚 Sources
This guide is general information, not financial, tax or legal advice. Rules and limits change; confirm with the sources above or a licensed professional.