If you are self-employed and expect to owe $1,000 or more in federal income tax for 2026, you are required to make quarterly estimated tax payments. Missing these payments does not just mean a bigger bill in April — it means an underpayment penalty on top of what you owe. Here is exactly how to calculate and pay your estimates for 2026.
Who Must Pay Quarterly Estimates?
You must pay quarterly estimated taxes if you expect to owe at least $1,000 in federal tax after withholding and credits, and your withholding and credits will cover less than 90% of your current-year tax liability or less than 100% of your prior-year tax liability (110% if your prior-year AGI was over $150,000). For solo contractors, landlords with net rental income, and cleaning business owners, this threshold is almost always met.
The 2026 Payment Schedule
| Payment Period | Due Date |
|---|---|
| January 1 – March 31 | April 15, 2026 |
| April 1 – May 31 | June 16, 2026 |
| June 1 – August 31 | September 15, 2026 |
| September 1 – December 31 | January 15, 2027 |
How to Calculate Your Quarterly Payment
The simplest method is the safe harbor method: pay 100% of your prior-year tax liability in four equal installments (or 110% if your prior-year AGI exceeded $150,000). This protects you from underpayment penalties regardless of what you actually earn in 2026.
Example: Your 2025 federal tax liability was $8,400. Under the safe harbor method, pay $2,100 per quarter ($8,400 ÷ 4). Even if you earn significantly more in 2026, you will not owe an underpayment penalty.
How 2026 OBBBA Changes the Calculation
- $16,100 standard deduction (up from $14,600 in 2025) — reduces your taxable income by an additional $1,500
- $12,500 overtime premium deduction cap — if you worked overtime hours, the overtime premium portion is deductible up to $12,500
- $40,400 SALT cap — if you itemize and pay significant state and local taxes, the increased cap may make itemizing more beneficial
Use the SoloBid Estimator to model your 2026 tax liability with all three OBBBA parameters applied, then divide by four to get your quarterly payment target.
How to Pay
The easiest method is IRS Direct Pay at irs.gov/payments. Select "Estimated Tax" as the payment type and "1040-ES" as the form. Minnesota also requires quarterly estimated payments if you expect to owe more than $500 in state income tax — pay at revenue.state.mn.us on the same schedule.
Common Mistakes
- Forgetting self-employment tax in the estimate: SE tax (15.3% on the first $168,600 of net earnings) is separate from income tax and must be included in your quarterly estimate.
- Not setting aside money as you earn it: Transfer 25–30% of every payment you receive into a separate tax savings account immediately. Do not wait until the quarterly due date to figure out where the money is coming from.
- Paying the same amount every quarter regardless of income: If Q1 was slow and Q2 was busy, adjust your Q2 payment upward rather than waiting until April to catch up.