How to Pay Quarterly Estimated Taxes

Quarterly estimated taxes can feel intimidating the first time you hear about them. Instead of taxes being withheld automatically from a paycheck, you may need to send payments yourself during the year. That can feel like one more responsibility, especially if your income is irregular.

In this guide, you’ll learn how to pay quarterly estimated taxes, who may need to pay them, how to estimate the amount, and how to avoid tax-time surprises.

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TL;DR: Quick Decision Guide

• If you earn income without tax withholding → you may need to make estimated tax payments.
• If you are self-employed, freelance, or run a side hustle → estimated taxes may cover income tax and self-employment tax.
• If you also have a W-2 job → increasing paycheck withholding may be easier than making quarterly payments.
• If your income changes during the year → update your estimate instead of sticking with an outdated number.
• If you miss a payment → pay as soon as possible and adjust the next quarter.

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What Are Quarterly Estimated Taxes?

Quarterly estimated taxes are payments you make during the year toward income that does not have enough tax withheld automatically.

The IRS says estimated tax is the method used to pay tax on income that is not subject to withholding, including self-employment income, interest, dividends, rents, alimony, and other taxable income. Form 1040-ES is used to figure and pay estimated tax.

You may need estimated taxes if you receive income from:

• Freelance work
• Contracting
• Gig work
• Side hustles
• Small business profit
• Rental income
• Investment income
• Retirement income without enough withholding
• Unemployment income without withholding
• Interest or dividends

What to do:
Look at your income sources. If taxes are not being withheld, you may need a plan to pay during the year.

👉 Explore: Tax software and free filing options in the Marketplace →

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Step 1: Figure Out Whether You Need to Pay

Not everyone with extra income needs quarterly payments. The question is whether your withholding and credits are likely to cover your total tax for the year.

Estimated taxes are most common for people who expect to owe tax after subtracting withholding and credits. Self-employed people should pay special attention because their payments may need to cover both federal income tax and self-employment tax.

The IRS self-employed tax center says self-employed individuals can use the worksheet in Form 1040-ES to find out whether they are required to pay estimated taxes quarterly.

What to do:
Review last year’s return and this year’s expected income. If your income increased, withholding dropped, or you added untaxed income, run an estimate.

👉 Related: How to File Taxes if You’re Self-Employed →

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Step 2: Know the Quarterly Tax Deadlines

Estimated taxes are called “quarterly,” but the payment periods are not evenly spaced. The IRS lists the standard payment periods and due dates as follows: January 1 through March 31 is due April 15; April 1 through May 31 is due June 15; June 1 through August 31 is due September 15; and September 1 through December 31 is due January 15 of the following year.

For the 2026 tax year, those deadlines are:

Payment Period	Due Date
January 1–March 31, 2026	April 15, 2026
April 1–May 31, 2026	June 15, 2026
June 1–August 31, 2026	September 15, 2026
September 1–December 31, 2026	January 15, 2027

What to do:
Add the due dates to your calendar. Set a reminder at least two weeks before each deadline so you have time to review your numbers.

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Step 3: Estimate Your Income for the Year

To calculate estimated taxes, you need a reasonable estimate of your income, deductions, credits, and tax for the year.

Start with:

• Expected business income
• Expected side hustle income
• Expected W-2 income, if any
• Investment income
• Rental income
• Retirement income
• Business expenses
• Deductions
• Credits
• Tax already withheld
• Estimated payments already made

If this is your first year being self-employed, the IRS says you will need to estimate how much income you expect to earn for the year. If you estimate too high or too low, you can complete another Form 1040-ES worksheet to refigure the next quarter.

What to do:
Use your best current estimate. Quarterly taxes are not about perfection. They are about staying reasonably paid in as the year unfolds.

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Step 4: Use Form 1040-ES or Tax Software

Form 1040-ES includes worksheets to help individuals estimate their tax. You can also use tax software, bookkeeping software, or a tax professional.

Your estimate should include:

Tax Item	Why It Matters
Federal income tax	Based on taxable income
Self-employment tax	Applies to many freelancers and sole proprietors
Credits	May reduce your tax
Withholding	Reduces what you still need to pay
Prior payments	Helps avoid overpaying

The IRS says Form 1040-ES is used to figure and pay estimated tax.

What to do:
If your income is simple, Form 1040-ES or tax software may be enough. If you have a business, rental property, large investment income, or irregular income, consider getting help.

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Step 5: Set Aside Money as You Earn It

The easiest way to pay quarterly taxes is not to wait until the deadline. Set aside money when income arrives.

A simple system:

1. Get paid.
2. Move a percentage into a separate tax savings account.
3. Track income and expenses monthly.
4. Review your estimate at quarter-end.
5. Pay from the tax savings account.

There is no one percentage that works for everyone. Your number depends on income, deductions, credits, filing status, state taxes, and other household income.

What to do:
Start with a conservative tax savings percentage, then adjust after your first quarterly review or after talking with a tax professional.

Smile Money Tip:
Do not let tax money sit in the same account as spending money. If it looks available, it gets easier to use it for something else.

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Step 6: Pay the IRS Safely

You can pay estimated taxes online, by phone, by mail with Form 1040-ES vouchers, through the IRS2Go app, or through your IRS online account. The IRS says estimated tax payments can be made by mail with Form 1040-ES, online, by phone, through IRS2Go, or through an online account where taxpayers can see payment history and tax records.

Online payment options may include:

• IRS Direct Pay
• IRS Online Account
• EFTPS
• Debit card, credit card, or digital wallet through approved processors
• IRS2Go app

What to do:
Go directly to IRS.gov/payments or your IRS online account. Avoid payment links in emails, texts, social media messages, or search ads.

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Step 7: Keep Payment Records

Every estimated tax payment should be documented. This matters because you will report estimated payments when you file your annual tax return.

Save:

• Payment confirmation number
• Date paid
• Amount paid
• Tax year
• Payment method
• Bank record
• State estimated payment confirmation, if applicable

What to do:
Create a folder labeled “Estimated Tax Payments.” Save each confirmation as a PDF or screenshot with the payment date and tax year.

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Step 8: Do Not Forget State Estimated Taxes

Federal estimated taxes are only one part of the picture. If your state has income tax, you may also need to make state estimated tax payments.

This matters if you:

• Freelance
• Run a business
• Have rental income
• Moved states
• Work remotely across states
• Have investment income
• Owed state taxes last year

What to do:
Check your state tax agency’s estimated payment rules. State deadlines often follow federal timing, but not always.

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Step 9: Adjust When Income Changes

If your income changes, your estimated payments can change too. You do not have to keep paying based on an old estimate that no longer fits.

Adjust if:

• You gain or lose a major client
• Business expenses increase
• You start or stop a side hustle
• You get a W-2 job
• You lose a W-2 job
• Investment income changes
• You move states
• Your filing status changes
• You qualify for new credits or deductions

What to do:
Review your estimate each quarter. If the first quarter was slow and the third quarter was strong, update the next payment rather than guessing.

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Common Mistakes to Avoid

• Waiting until April to think about self-employment taxes
• Forgetting self-employment tax
• Paying federal estimated taxes but ignoring state taxes
• Not saving money as income arrives
• Using last year’s numbers when this year changed
• Missing payment confirmation records
• Paying the wrong tax year
• Assuming a W-2 job always covers side hustle taxes
• Clicking fake IRS payment links

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FAQs on Paying Quarterly Estimated Taxes

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Final Thought

Quarterly estimated taxes are not meant to punish freelancers, side hustlers, or business owners. They are part of a pay-as-you-go tax system.

The goal is to create a rhythm: earn, set aside, estimate, pay, and record. Once you build that habit, estimated taxes become less of a scary deadline and more of a regular part of managing your money.

Next Steps:

• 👉 Learn: How Self-Employment Taxes Work →
• 👉 Read: How to Report Side Hustle Income on Your Taxes →
• 👉 Learn: How to Save for Taxes as a Freelancer or Side Hustler →
• 👉 Explore: Tax software and free filing options in the Marketplace →