Quarterly Taxes
Estimated tax payments made four times per year to the IRS and state agencies, covering income tax and self-employment tax on earnings without withholding.
Quarterly Taxes Definition
Quarterly taxes (estimated tax payments) are periodic payments to the IRS covering income tax and self-employment tax on income that doesn't have taxes withheld. Self-employed individuals, freelancers, and business owners typically must pay them.
2026 Due Dates
Who Must Pay
How to Calculate
1. Estimate annual income
2. Subtract deductions
3. Apply tax rates + 15.3% self-employment tax
4. Subtract any W-2 withholding
5. Divide by 4
Safe harbor: Pay 100% of last year's tax (110% if AGI > $150K) to avoid penalties.
FAQ
Q: What happens if I miss a payment?
A: The IRS charges an underpayment penalty — currently around 8% annually on the shortfall. Pay as soon as possible to minimize it.
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