Why freelancers pay quarterly
Employers withhold tax from each paycheque. Nobody does that for freelance or platform income, so the IRS expects you to pay during the year through estimated tax payments. These cover both income tax and self-employment tax.
The due dates
Estimated payments are generally due around April 15, June 15, September 15 and January 15 of the following year. For 2026 income, the last installment is due around January 15, 2027. When a date falls on a weekend or holiday, it moves to the next business day, so check the IRS calendar for the exact day.
How to estimate what you owe
- Estimate your net profit for the year: income minus allowable business expenses.
- Calculate self-employment tax: 15.3% of 92.35% of net profit, with the Social Security part stopping at the $184,500 wage base for 2026.
- Subtract half of that tax and the standard deduction ($16,100 single, $32,200 married filing jointly), then apply the 2026 brackets to the rest.
- Add the two taxes together and divide by four.
Worked examples (single filer, 2026)
| Net profit | SE tax | Income tax | Total | Per quarter |
|---|---|---|---|---|
| $20,000 | $2,826 | $249 | $3,075 | $769 |
| $35,000 | $4,945 | $1,723 | $6,669 | $1,667 |
| $60,000 | $8,478 | $4,511 | $12,989 | $3,247 |
| $100,000 | $14,130 | $11,616 | $25,745 | $6,436 |
These figures use the same formulas as our take-home pay calculator. They exclude state tax, the 20% qualified business income deduction and credits, so your real bill may be lower. They are for planning, not filing.
The safe harbor rules
You generally avoid an underpayment penalty if your payments during the year add up to at least 90% of this year's tax, or 100% of last year's tax (110% if last year's adjusted gross income was above $150,000). You also generally owe no penalty if you will owe less than $1,000 when you file. Paying 100% of last year's tax is popular with freelancers whose income is rising, because the amount is known in advance.
How to pay
You can pay through IRS Direct Pay, your IRS online account, or EFTPS, or by mail with a voucher from Form 1040-ES. Keep a record of every payment, because you will claim them as credits on your return. Many states have their own estimated tax payments, which are separate.
Uneven income
Creators and freelancers often earn most of their money in a few months. If your income is lumpy, check the IRS rules for the annualized installment method, or ask a tax professional, so that you don't pay penalties on early quarters when you had not yet earned the money.
A practical habit
Move 25–30% of each payout into a separate account the day it arrives, then pay the IRS from that account each quarter. The US and UK tax guide covers the wider picture, and the creator tax estimator shows what deductions save.
A sample year with uneven income
Take a creator whose net profit by quarter is $4,000, $6,000, $12,000 and $13,000, a total of $35,000. Using our 2026 formulas the full-year federal bill is about $6,668, or $1,667 a quarter if paid evenly. But the money didn't arrive evenly. In the first quarter, paying $1,667 against $4,000 of profit would take more than 40% of what came in. That is where the safe harbor rules help.
If last year's total federal tax was $4,200, paying 100% of that figure through the year, $1,050 a quarter, generally protects you from an underpayment penalty even though this year's bill is higher. You would still owe about $2,468 at filing time, so the practical approach is to pay the safe harbor amount to the IRS and set the rest aside in a savings account. Check the safe harbor rules for your own situation before relying on this.
Setting up a system you will actually follow
The maths is the easy part. What goes wrong is the habit. A system that works for most people looks like this:
- Open a separate savings account used only for tax. Money you can't see in your everyday balance is much harder to spend.
- Move a fixed percentage every time a payout lands. Start with 25–30% for federal tax, and more if your state taxes income.
- Put the four payment dates in your calendar two weeks early, so a busy week doesn't swallow the deadline.
- Compare at each quarter-end. Look at profit so far against the estimate and adjust the next payment up or down.
- Pay through IRS Direct Pay or your IRS online account and save each confirmation with your records.
If income drops, recalculate and pay less. If it jumps, pay more in the quarter it arrives. Overpaying isn't a penalty, since the excess is credited to your return or refunded, but it does tie up cash you may need.
Mistakes that catch people out
- Paying only income tax. Self-employment tax is a separate 15.3% on most profits and is often the bigger part of the bill at lower incomes.
- Forgetting the January payment. The last installment for the year falls in the following January, when many people have already stopped thinking about that tax year.
- Using the wrong profit figure. Estimates are based on profit after expenses, not revenue. Track both.
- Ignoring state tax. Many states want their own estimated payments on top of the federal ones.
- Treating the estimate as exact. Our tables exclude state tax, credits and the 20% qualified business income deduction, so use them to plan, not to file.
Whatever you decide, writing down each payment and its date will save you a lot of grief when you come to file the return.
Last reviewed October 2026. Figures are estimates for planning, not tax advice. See the disclaimer and methodology.