Why freelancers pay quarterly
No employer withholds tax from 1099 income, so the IRS asks you to pay as you go. If you expect to owe $1,000 or more after withholding and credits, estimated payments are required.
Two taxes, not one
Self-employed people pay income tax and self-employment (SE) tax: 15.3% on 92.35% of net profit, covering Social Security and Medicare. Half of SE tax is deductible above the line, which softens it slightly. Budget roughly 25–30% of net profit for federal taxes as a starting rule of thumb.
The safe-harbor rule
You avoid the underpayment penalty if your four payments total at least:
- 100% of last year's tax (110% if last year's AGI exceeded $150,000), or
- 90% of this year's tax.
Most freelancers use the prior-year number because it is known in January. If income is growing quickly, the 90% method saves cash.
Due dates (tax year 2027)
| Quarter | Period covered | Due |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 15 |
| Q2 | Apr 1 – May 31 | June 15 |
| Q3 | Jun 1 – Aug 31 | September 15 |
| Q4 | Sep 1 – Dec 31 | January 15 |
Yes, the quarters are uneven. Set calendar reminders.
How to pay
Use IRS Direct Pay or your online IRS account and select "Estimated tax, 1040-ES". Keep the confirmation numbers. You will need them at filing time. Many states require parallel state estimates.
A worked example
Net freelance profit of $80,000, single, no other income, 2026 rates:
- SE tax ≈ $11,300; half ($5,650) deducted
- AGI ≈ $74,350; standard deduction $16,100 → taxable $58,250
- Income tax ≈ $7,530
- Total ≈ $18,830, or about $4,700 per quarter
Use our estimator to run your own numbers.
Common mistakes
Skipping Q4 because "I'll just pay in April" (penalty accrues from January), forgetting state estimates, and not adjusting when income jumps mid-year.
This guide is general information for United States taxpayers, not advice for your specific situation. Rates and thresholds change with each IRS revenue procedure; confirm current figures with the IRS or with us before acting.
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