Federal estimated taxes · tax year 2026
Will you owe an underpayment penalty — and what should you pay each quarter?
Enter four numbers and get your safe-harbor target and the per-quarter estimated payment that keeps the IRS penalty off your return. Built for freelancers, 1099 contractors, and anyone with income that isn't fully withheld.
- Required annual payment (smaller safe harbor)
- $12,000
- · 100% of last year's tax
- $12,000 ◀
- · 90% of this year's tax
- $19,800
- Less expected withholding
- −$5,000
- Estimated tax to pay this year
- $7,000
| Quarter | Due | Pay |
|---|---|---|
| Q1 | Apr 15, 2026 | $1,750 |
| Q2 | Jun 15, 2026 | $1,750 |
| Q3 | Sep 15, 2026 | $1,750 |
| Q4 | Jan 15, 2027 | $1,750 |
Heads-up: hitting the safe harbor avoids the penalty, not the tax. At these numbers you'd still owe about $10,000 when you file.
Estimate only — not tax advice. Confirm with IRS Form 2210 / Pub 505 or a tax professional.
How the safe harbor works
- Pick the smaller of 90% of your estimated current-year tax and 100% (or 110% for higher earners) of last year's tax — that is your required annual payment.
- Subtract the withholding you expect this year. Withholding counts as paid evenly across all four quarters.
- Divide what is left by four. That is the estimated payment to send each quarter to stay penalty-free.
- If your total balance owed after withholding is under $1,000, no penalty applies and no estimated payments are required.
Withholding counts as paid evenly across the year — so bumping up your W-2 withholding late can retroactively fix an earlier shortfall, something estimated payments can't do. For uneven income, the annualized-income method (Form 2210 Schedule AI) can lower early-quarter payments.
Questions
What is the estimated-tax "safe harbor"?
The IRS will not charge an underpayment penalty if your withholding plus timely estimated payments cover the smaller of (a) 90% of this year's total tax, or (b) 100% of last year's total tax — 110% if your prior-year AGI was over $150,000 ($75,000 if married filing separately). Hit either target and you are safe even if you still owe a balance at filing.
Is there a minimum I can owe without a penalty?
Yes. If your balance due after withholding is less than $1,000, the underpayment penalty generally does not apply at all, regardless of the safe harbor.
Do estimated payments have to be equal each quarter?
The default is four equal installments (25% each). If your income is lumpy (e.g., a big Q3), you can instead use the annualized-income installment method on Form 2210 Schedule AI to lower early-quarter payments — but that is more paperwork. This tool shows the simple equal-quarter amount.
Does withholding count toward the quarters?
Withholding is treated as paid evenly throughout the year no matter when it was actually withheld. That is why increasing your W-2 withholding late in the year can retroactively cure an earlier shortfall — an option estimated payments do not have.
When are 2026 estimated payments due?
For tax year 2026: Q1 — April 15, 2026; Q2 — June 15, 2026; Q3 — September 15, 2026; Q4 — January 15, 2027. If a date lands on a weekend or holiday it shifts to the next business day.
Why does this tool not show the dollar penalty?
The penalty is interest-based and uses the IRS underpayment rate, which is reset every quarter (it has recently been around 7–8% per year). Because that rate changes, this tool focuses on the reliable part — the safe-harbor target and the per-quarter payment that avoids the penalty entirely.