Quarterly Tax Calculator
Calculate quarterly estimated tax payments for self-employed individuals, freelancers, and those with investment income. Avoid IRS underpayment penalties.
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About This Calculator
Quarterly estimated tax payments are required for self-employed individuals, freelancers, and anyone with significant income not subject to withholding. The IRS expects you to pay taxes throughout the year - not just at filing time. Failing to make adequate quarterly payments can result in underpayment penalties, even if you pay everything you owe by April 15.
Who Must Make Quarterly Payments:
- Self-employed individuals and freelancers
- Independent contractors
- Sole proprietors and partners
- S corporation shareholders with K-1 income
- Investors with significant capital gains or dividends
- Anyone expecting to owe $1,000+ in taxes
Why Quarterly Payments Exist: The U.S. tax system is "pay as you go." Employees have taxes withheld from each paycheck. Self-employed individuals and investors must replicate this through quarterly estimated payments.
Payment Due Dates:
- Q1 (Jan-Mar): April 15
- Q2 (Apr-May): June 15
- Q3 (Jun-Aug): September 15
- Q4 (Sep-Dec): January 15 (next year)
Safe Harbor Rules: You can avoid penalties by paying at least:
- 100% of last year's tax liability, OR
- 90% of this year's tax liability
- (110% of last year's tax if AGI > $150,000)
This calculator helps determine your quarterly payment amounts. For self-employment tax details, see our Self-Employment Tax Calculator. For 1099 tax planning, visit our 1099 Tax Calculator.
How to Use the Quarterly Tax Calculator
- 1Enter your expected annual income for the tax year.
- 2Select your income type (self-employment, investment, or mixed).
- 3Choose your tax filing status.
- 4Enter any W-2 withholding that will apply toward your taxes.
- 5Input your prior year's total tax (Form 1040 Line 24).
- 6Enter your prior year AGI (affects safe harbor threshold).
- 7Optionally enter payments already made for Q1-Q3.
- 8Review your total tax estimate and quarterly amounts.
- 9Note the safe harbor amounts to avoid penalties.
- 10Follow the payment schedule to stay compliant.
Understanding Quarterly Estimated Taxes
The IRS requires pay-as-you-go tax payments for income without withholding.
Who Must Pay Quarterly
General Rule: If you expect to owe $1,000 or more in taxes when you file your return, you should make quarterly payments.
Common Situations:
| Situation | Quarterly Payments? |
|---|---|
| Self-employed (1099) | Yes |
| Freelancer | Yes |
| Rental income | Usually yes |
| Investment income | If significant |
| Side gig + W-2 job | Maybe (depends on withholding) |
| W-2 employee only | Usually no |
Payment Schedule
| Quarter | Income Period | Due Date |
|---|---|---|
| Q1 | January 1 - March 31 | April 15 |
| Q2 | April 1 - May 31 | June 15 |
| Q3 | June 1 - August 31 | September 15 |
| Q4 | September 1 - December 31 | January 15 |
Note: Q2 covers only 2 months, Q3 covers 3 months. The periods are uneven.
What's Included in Quarterly Payments
- Federal income tax
- Self-employment tax (Social Security + Medicare)
- NOT state taxes (pay those separately)
Safe Harbor Rules
Safe harbor rules let you avoid penalties even if you underpay.
Two Safe Harbor Options
Option 1: Prior Year Safe Harbor Pay at least 100% of last year's tax liability.
- Doesn't matter what you owe this year
- Simple and predictable
- Good if income is increasing
Option 2: Current Year Safe Harbor Pay at least 90% of this year's tax liability.
- Must estimate accurately
- Better if income is decreasing
- Risk if you underestimate
High-Income Exception
If Prior Year AGI > $150,000: Must pay 110% of prior year tax (not 100%)
Example:
- Last year's tax: $30,000
- AGI was $180,000 (above $150K)
- Required: $30,000 × 110% = $33,000
- Quarterly: $33,000 ÷ 4 = $8,250
Safe Harbor Comparison
| Your Situation | Use This Safe Harbor |
|---|---|
| Income increasing | Prior year (100%/110%) |
| Income decreasing | Current year (90%) |
| Variable income | Whichever is lower |
| First year self-employed | Current year estimate |
Calculating Quarterly Payments
Several methods exist for calculating your quarterly payments.
Method 1: Equal Payments
Simplest Approach: Estimated annual tax ÷ 4 = Each quarterly payment
Example:
- Expected tax: $24,000
- Quarterly payment: $24,000 ÷ 4 = $6,000
Pros: Simple, consistent Cons: May overpay if income varies
Method 2: Annualized Income
For Variable Income:
- Calculate actual income each quarter
- Annualize and compute tax
- Pay based on actual income received
Annualization Periods:
| Payment | Annualize Through |
|---|---|
| Q1 (Apr 15) | March 31 |
| Q2 (Jun 15) | May 31 |
| Q3 (Sep 15) | August 31 |
| Q4 (Jan 15) | December 31 |
Best For: Seasonal businesses, year-end bonuses, variable commissions
Method 3: Prior Year Method
Most Predictable: Prior year tax ÷ 4 (or ÷ 4 × 110% if high income)
Example:
- Last year's tax: $20,000
- Last year's AGI: $120,000 (below $150K)
- Quarterly payment: $20,000 ÷ 4 = $5,000
Guaranteed Penalty-Free: If you pay 100% (or 110%) of prior year, no penalties regardless of actual tax.
Avoiding Underpayment Penalties
Understanding penalties helps you plan payments effectively.
When Penalties Apply
You'll Owe Penalties If:
- You owe $1,000+ at filing
- You paid less than 90% of current year tax
- AND less than 100%/110% of prior year tax
Penalty Calculation
How It's Calculated:
- Federal short-term rate + 3%
- Currently approximately 8% annual
- Applied to underpayment for period unpaid
- Calculated separately for each quarter
Penalty Example
| Quarter | Required | Paid | Underpaid | Months Late | Penalty |
|---|---|---|---|---|---|
| Q1 | $5,000 | $3,000 | $2,000 | 12 | ~$160 |
| Q2 | $5,000 | $5,000 | $0 | - | $0 |
| Q3 | $5,000 | $4,000 | $1,000 | 6 | ~$40 |
| Q4 | $5,000 | $5,000 | $0 | - | $0 |
| Total | $20,000 | $17,000 | $3,000 | - | ~$200 |
Penalty Exceptions
No Penalty If:
- Total tax due < $1,000
- Withholding covers 90% of tax
- Current year tax - withholding < $1,000
- Special circumstances (disaster, casualty, retirement)
Making Your Payments
Multiple options exist for making quarterly payments.
Payment Methods
| Method | Details | Fees |
|---|---|---|
| IRS Direct Pay | irs.gov/payments | Free |
| EFTPS | eftps.gov (enrollment required) | Free |
| Credit Card | Various processors | 1.87-2.35% |
| Debit Card | Various processors | $2-$3 flat |
| Check | Mail with 1040-ES voucher | Stamp |
IRS Direct Pay
Best For Most People:
- No enrollment required
- Free bank account transfer
- Immediate confirmation
- Schedule up to 30 days ahead
Steps:
- Go to irs.gov/payments
- Select "Estimated Tax"
- Enter payment info
- Receive confirmation
EFTPS (Electronic Federal Tax Payment System)
Best For Businesses:
- Schedule payments far in advance
- Batch payments
- Business entity payments
- Requires 5-7 day enrollment
What to Include with Check
Form 1040-ES Voucher:
- Your name and address
- SSN
- Tax year
- Payment amount
- Quarter (1, 2, 3, or 4)
Mail To: Address varies by state - check 1040-ES instructions
State Estimated Taxes
Many states also require quarterly estimated tax payments.
State Payment Requirements
States With Income Tax: Most states with income tax also require estimated payments.
States With No Income Tax: Alaska, Florida, Nevada, New Hampshire (dividends only), South Dakota, Tennessee (dividends only), Texas, Washington, Wyoming
State Due Dates
Usually Same as Federal:
- April 15
- June 15
- September 15
- January 15
Some States Differ: Check your state's requirements
Common State Rules
| State | Safe Harbor | Notes |
|---|---|---|
| California | 90%/100%/110% | Same as federal |
| New York | 90%/100%/110% | Same as federal |
| Texas | N/A | No income tax |
| Florida | N/A | No income tax |
Making State Payments
Options Vary By State:
- State tax website
- Paper vouchers
- Tax software integration
- State tax apps
Pro Tips
- 💡Use prior year safe harbor if your income is stable or increasing.
- 💡Pay at least 100% (or 110% if high income) of last year's tax to guarantee no penalties.
- 💡Set calendar reminders for April 15, June 15, September 15, and January 15.
- 💡Use IRS Direct Pay for free, immediate payment confirmation.
- 💡Keep records of all payments including confirmation numbers.
- 💡Don't forget state estimated taxes if your state has income tax.
- 💡If income varies, consider the annualized income installment method.
- 💡Open a dedicated savings account for tax payments.
- 💡Review your estimate quarterly and adjust as needed.
- 💡Include both income tax and self-employment tax in your calculation.
- 💡First-year self-employed? Estimate conservatively to avoid penalties.
- 💡Use tax software to help calculate and track estimated payments.
Frequently Asked Questions
Quarterly payments are due April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15 (Q4). If the due date falls on a weekend or holiday, payment is due the next business day. State estimated taxes typically follow the same schedule.
