If you earn income without withholding, such as self-employment, rental or investment income, the IRS expects you to pay during the year.
Who must pay
You generally must pay estimated tax if you expect to owe at least $1,000 after withholding and credits. Payments are due approximately April 15, June 15, September 15 and January 15.
Safe harbor rules
You avoid penalties if you pay at least 90% of this year's tax or 100% of last year's tax, increasing to 110% when prior-year AGI exceeded $150,000. Many freelancers use the prior-year method for predictability.
Practical tips
Move a set percentage of each payment into a tax savings account. Pay online through IRS Direct Pay or your IRS account. If income is uneven, the annualized income installment method may reduce penalties. Revisit your numbers each quarter.
Try the numbers
Use our Quarterly Estimated Tax Calculator to see this in practice. With its default example (Expected total tax this year: $24,000; Total tax last year: $19,000; Last year’s AGI: $120,000), it shows each quarterly payment: $3,750. Adjust the inputs to match your situation.
Key takeaways
- Safe harbor: 90% of this year or 100%/110% of last year.
- Quarterly due dates fall in April, June, September and January.
- Automate a tax savings transfer.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.