Quarterly Estimated Tax Calculator
Calculates quarterly estimated tax payment amounts for the self-employed and those with non-wage income. Use it to avoid underpayment penalties during the tax year.
About this calculator
When taxes are not withheld from income, the IRS requires taxpayers to pay estimated taxes in four quarterly installments. The formula is: Quarterly Payment = ((expectedIncome × estimatedTaxRate) / 100) / 4. The estimated tax rate should reflect your combined federal income tax rate and self-employment tax rate — typically 25–35% for most self-employed individuals. Quarterly due dates generally fall in April, June, September, and January. To avoid underpayment penalties, your total payments must cover at least 90% of the current year's tax or 100% of last year's tax liability (110% if your prior-year AGI exceeded $150,000). This calculator provides a baseline estimate; actual liability may vary with deductions and credits.
How to use
Suppose you expect to earn $80,000 this year as a consultant and estimate a combined tax rate of 28% (income tax plus self-employment tax). Enter Expected Annual Income = $80,000 and Estimated Tax Rate = 28. The calculator computes: ($80,000 × 28 / 100) / 4 = $22,400 / 4 = $5,600. You should pay approximately $5,600 each quarter — in April, June, September, and January — to stay current with your tax obligation and avoid IRS underpayment penalties.
Frequently asked questions
Who is required to make quarterly estimated tax payments to the IRS?
You generally must make quarterly estimated tax payments if you expect to owe at least $1,000 in federal tax after subtracting withholding and credits. This commonly applies to freelancers, self-employed individuals, landlords, investors with capital gains, and those with large side incomes. Employees who receive bonuses or have significant investment income may also need to supplement their withholding with estimated payments. Failure to pay enough during the year can result in an underpayment penalty even if you receive a refund when you file.
What tax rate should I use when calculating estimated quarterly tax payments?
Your estimated tax rate should combine your expected federal income tax bracket and self-employment tax. For a self-employed individual, this is commonly in the range of 25–35% — for example, a 22% income tax bracket plus roughly 14% SE tax, offset by the SE tax deduction and business deductions, might net out to about 28–30%. Using last year's effective tax rate as a starting point is a practical approach. If your income varies widely, consider recalculating each quarter with updated income projections.
What are the quarterly estimated tax due dates and what happens if I miss one?
The four federal estimated tax due dates are typically April 15, June 15, September 15, and January 15 of the following year. If a due date falls on a weekend or holiday, it shifts to the next business day. Missing a payment or underpaying a quarter triggers an underpayment penalty calculated using the IRS underpayment interest rate, which changes quarterly. You can use IRS Form 2210 to calculate the exact penalty, or the IRS will calculate it and send a bill. Even a late partial payment reduces the penalty, so pay as soon as possible if you miss a deadline.