Quarterly Estimated Taxes for Self-Employed Owners

Posted on April 14th, 2026

Quarterly estimated taxes often surprise many self-employed individuals, particularly during their inaugural year of business. The IRS still expects taxpayers to pay taxes as they earn income, even when no employer is withholding taxes from each paycheck. That includes both income tax and self-employment tax, and missing those payments can lead to penalties even if you plan to pay everything when you file your annual return. 

Small Business Taxes Start With Pay-As-You-Go

If you work for yourself, the IRS usually expects you to pay taxes throughout the year instead of waiting until tax season. IRS Publication 505 says people who are in business for themselves generally have to pay tax this way, and Form 1040-ES explains that estimated tax is the method used to pay tax on income that is not subject to withholding, including earnings from self-employment. That means small business taxes are often handled on a pay-as-you-go basis, not as one big payment in April.

A few basics usually apply right away:

• Estimated tax covers more than income tax, including self-employment tax

• Gig work, freelance work, contract income, and side income may all trigger estimated payments

• Paying nothing until tax season can create both a balance due and a penalty

• A first-year business owner may still need estimated payments if expected tax is high enough

• Withholding from a spouse’s paycheck can sometimes help reduce the need for separate estimated payments

These details matter because many people assume quarterly taxes are only for larger businesses. In reality, sole proprietors, freelancers, and independent contractors are often the exact people who need to pay the closest attention. 

When Are Quarterly Estimated Taxes Due 2026

One of the most common questions people ask is, When are quarterly estimated taxes due in 2026? For the 2026 tax year, the usual due dates are April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. The IRS explains that the year is divided into four payment periods, each with its own due date, and the Taxpayer Advocate Service lists those same 2026 dates directly.  The dates to remember for 2026 are:

• April 15, 2026 for the first payment

• June 15, 2026 for the second payment

• September 15, 2026 for the third payment

• January 15, 2027 for the fourth payment

If your income is uneven during the year, there may be some flexibility. IRS Topic No. 306 says taxpayers with uneven income may be able to vary payment amounts and potentially reduce or avoid a penalty by using the annualized installment method on Form 2210. 

How To Calculate Quarterly Estimated Taxes

The question "How to calculate quarterly estimated taxes for self-employed" sounds simple, but this is where many people start guessing. The IRS gives a worksheet in Form 1040-ES to estimate total tax for the year, including income tax and self-employment tax, then divide that amount into payments. Often, taxpayers make four equal payments, though people with uneven income may use the annualized method instead.  A solid process often includes:

• Projecting annual net income instead of monthly revenue alone

• Adding expected self-employment tax to income tax

• Subtracting withholding and credits already expected for the year

• Dividing into four payments if income is fairly steady

• Revisiting the estimate if business income changes sharply midyear

This is also where safe-harbor rules matter for How to avoid estimated tax penalties IRS issues. Form 1040-ES says you generally avoid an underpayment penalty if your withholding and estimated payments equal at least 90% of the current year’s tax or 100% of the prior year’s tax, whichever is smaller. 

How To Avoid Estimated Tax Penalties IRS

The IRS underpayment penalty applies if you do not pay enough estimated tax or if you pay late. The IRS penalty page says the penalty can apply even if you are due a refund when you file your return.  A few penalty-reduction strategies stand out:

• Pay by each due date, not just by year-end

• Use safe-harbor targets based on current-year or prior-year tax

• Increase withholding elsewhere if you or a spouse has W-2 income

• Annualize income if earnings are uneven through the year

• Keep records of every payment so nothing gets missed or duplicated

This also answers part of "What happens if I miss a quarterly tax payment?" If you miss one, the IRS can assess a penalty for that underpayment period. Form 2210 is used to determine or explain underpayment issues, and the IRS says it may calculate the penalty for you and send a bill in numerous instances. 

Related: How Does Catch-Up Bookkeeping Help Fix Your Finances?

Conclusion

Quarterly estimated taxes are one of the biggest pressure points for self-employed people because they combine timing, projections, and IRS penalty rules into one recurring task. The IRS expects taxes to be paid as income is earned, not just at filing time, and penalties can apply if payments are too low or too late.

At AB Accounting Solutions LLC, we help business owners take the guesswork out of quarterly payments and avoid costly mistakes. Stop guessing your quarterly tax payments and learn more about our Business Tax Preparation Services so you can get back to running your business with more peace of mind. To get started, call (978) 987-9840 or email [email protected].