Who must pay estimated taxes in 2026
- You expect to owe at least $1,000 for 2026 after subtracting withholding and refundable credits; and
- Your withholding and refundable credits will be less than the smaller of (a) 90% of your 2026 tax, or (b) 100% of your 2025 tax (110% if your 2025 AGI exceeded $150,000; $75,000 if MFS). See IRS Publication 505
2026 quarterly estimated payment calendar (calendar‑year filers)
- Q1 (income Jan 1–Mar 31): due Wednesday, April 15, 2026
- Q2 (income Apr 1–May 31): due Monday, June 15, 2026
- Q3 (income Jun 1–Aug 31): due Tuesday, September 15, 2026
- Q4 (income Sep 1–Dec 31): due Friday, January 15, 2027
How much to pay: Safe harbor versus projection
- Safe harbor approach: Pay the smaller of 90% of your 2026 total tax or 100% of your 2025 total tax (110% if your 2025 AGI exceeded $150,000; $75,000 if MFS). Form 2210 instructions (higher‑income rule)
- Projection approach: Estimate 2026 income and recompute each quarter, especially if income is uneven (e.g., a large capital gain later in the year). You can use the Annualized Income Installment Method (Form 2210 Schedule AI) to match payments to when income actually arrives and avoid penalties.
How to avoid or reduce penalties
- Use the annualized method (Schedule AI) in years with lumpy income: penalties are figured separately for each installment, so timing matters.
- Increase withholding late in the year (including from IRA, pension, or bonus checks). For penalty purposes, federal withholding is generally treated as paid in equal amounts on each due date, which can help cover earlier shortfalls.
- If you file your 2026 return and pay all tax due by January 31, 2027, you can often skip the January 15 payment without penalty.
- Check the IRS quarterly interest rates: penalty equals interest on the underpayment, computed for each period at the published rates.
How to pay your 2026 estimated taxes
Common 2026 scenarios (quick examples)
- New freelancer: You expect a $12,000 net profit and little withholding. Use Form 1040‑ES to compute quarterly amounts; consider the safe harbor to avoid penalties your first year.
- Investor with a large December gain: Annualize income with Schedule AI and/or raise year‑end withholding to avoid penalties for earlier quarters.
- Retiree with IRA withdrawals: Submit Form W‑4P to increase federal withholding on distributions instead of making separate estimates.