Quarterly Estimated Taxes for Freelancers

As an employee, taxes come out of every paycheck automatically. As a freelancer, nobody withholds anything — so the IRS asks you to pay it yourself, four times a year. These are estimated taxes, and missing them can mean penalties even if you pay in full come April.

Do you have to pay them?

Generally, yes — if you expect to owe $1,000 or more in tax for the year after subtracting any withholding. That's most full-time freelancers. If freelancing is a small side income and your day-job withholding covers everything, you may not need to.

The 2026 due dates

Estimated taxes are paid in four installments. For the 2026 tax year they fall on:

• April 15, 2026 — for income earned Jan 1 – Mar 31
• June 15, 2026 — for April 1 – May 31
• September 15, 2026 — for June 1 – Aug 31
• January 15, 2027 — for Sep 1 – Dec 31

If a date lands on a weekend or holiday, it shifts to the next business day. You pay using Form 1040-ES, or online through IRS Direct Pay or your IRS account.

What you're actually paying

Each payment covers both:

• Income tax on your profit, and
• Self-employment tax (15.3% on net earnings).

That's why the bill feels large — it's two taxes bundled into one payment.

The safe-harbor rule (your penalty shield)

You don't have to predict your income perfectly. You avoid an underpayment penalty if you pay at least the smaller of:

• 90% of this year's total tax, or
• 100% of last year's total tax (110% if your prior-year adjusted gross income was over $150,000).

That second option is the easy one: look at last year's total tax, pay that amount split across four quarters, and you're protected — even if you earn much more this year. You'll settle the difference in April.

A simple system that works

1. Open a separate savings account just for taxes.
2. Every time a client pays you, move 25–30% into it.
3. On each due date, send a quarter of your safe-harbor number from that account.
4. Reconcile the real total when you file.

The set-aside percentage depends on your bracket, your state, and your deductions. To get a number tuned to your situation, run your income through our rate & take-home calculator — it shows the tax slice of every dollar you bill, so you know how much to hold back.

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This is general information, not tax advice. Due dates and rules can change, and your safe-harbor figure depends on your full return — confirm with a qualified tax professional or the IRS.