How the quarterly math works
Employees settle their tax every paycheck through withholding. Freelancers get four deadlines instead — April 15, June 15, September 15, and January 15 — and the IRS estimated tax rules require payments once you expect to owe $1,000 or more for the year after withholding and credits. This calculator builds the annual bill from its two layers, then divides by four. Self-employment tax is 15.3% (12.4% Social Security plus 2.9% Medicare) applied to 92.35% of your net profit, and it starts once net earnings reach $400 for the year. Income tax is your net profit times the rate you enter — use your effective rate on the freelance income if you know it, or your marginal bracket as a conservative stand-in. The paid-to-date field then subtracts whatever you have already sent the IRS, so mid-year you see the remaining balance rather than the January number.
Formula: quarterly payment = (net profit × 0.9235 × 15.3% + net profit × income-tax rate) ÷ 4; remaining balance = annual total − estimated tax paid year-to-date.
| Output | What it means | At the defaults |
|---|---|---|
| Quarterly payment | One-fourth of the estimated annual bill — the check to write each deadline | $5,419.43 |
| Annual total | Self-employment tax plus income tax for the full year | $21,677.73 |
| SE-tax portion | 15.3% on 92.35% of net profit; owed from the first $400 of net earnings | $8,477.73 |
| Income-tax portion | Net profit at the rate you entered | $13,200.00 |
| Remaining after YTD payments | Annual total minus estimated tax already paid this year | $21,677.73 |
Worked example: $60,000 of profit at a 22% rate
The defaults describe a full-time freelancer with no other household income and no state income tax. First the self-employment layer: $60,000 × 0.9235 = $55,410 of taxable net earnings, then $55,410 × 15.3% = $8,477.73. Next the income layer: $60,000 × 22% = $13,200. The annual total is $8,477.73 + $13,200 = $21,677.73, which is 36.1% of net profit — the honest number behind the folk advice to "just save 30%." Divided into four equal installments, each quarterly payment is $21,677.73 ÷ 4 = $5,419.43. With nothing paid yet this year the remaining balance is the full $21,677.73; enter $10,000 already paid and the calculator shows $11,677.73 still to send across the deadlines that remain.
The safe-harbor note: what avoids the penalty
Computing the bill is only half the job; paying enough of it on time is the other half. You generally avoid the underpayment penalty by paying the smaller of 90% of the current year's tax or 100% of the prior year's tax — 110% of the prior year's tax if your prior-year adjusted gross income was above $150,000 — once you expect to owe $1,000 or more. If last year's income was stable, paying 100% of last year's bill in four chunks is the stress-free path even if this year turns out better. One thing the safe harbor does not do is pay your tax: it protects you from the penalty, not from the bill, and any balance beyond what you prepaid is still due with the return. The full schedule, the uneven quarter lengths, and the W-4 withholding trick for mixed-income households are in our quarterly estimated taxes guide.
Safe-harbor voucher math: a $10,000 prior year
Take a freelancer whose prior-year total tax was $10,000 with prior-year AGI under $150,000, expecting $15,000 of tax this year. Formula: voucher = min(0.90 × current-year tax, prior-year tax × 1.10 if AGI over $150,000 else × 1.00) ÷ 4. Here that is min(0.90 × $15,000 = $13,500, $10,000 × 1.00 = $10,000) = $10,000 for the year, or $2,500 per voucher — even though the actual bill will be $5,000 higher, the penalty is avoided and the $5,000 balance simply comes due with the return.
Common quarterly-tax mistakes
Four errors cause most estimated-tax trouble, and each one is avoidable:
- Treating the January 15 payment as next-year money: it closes the prior tax year, so tag every payment with the year it applies to — payments default to the current year, which is wrong in January.
- Skipping a quarter because that quarter's invoices were small: the $1,000 threshold is annual, and the underpayment penalty accrues per missed quarter.
- Forgetting state estimates on top of the federal figure: this calculator is federal only, so add your state's rate to each payment or the shortfall arrives all at once in April.
- Setting the rate in January and forgetting it: re-run the calculator whenever a contract changes size rather than trusting January's number in October.
For 2026, the four voucher deadlines are:
| Payment | Due date |
|---|---|
| Q1 2026 | April 15, 2026 |
| Q2 2026 | June 15, 2026 |
| Q3 2026 | September 15, 2026 |
| Q4 2026 | January 15, 2027 |
The January 15, 2027 payment is 2026 money, not 2027 money — it covers the final months of 2026, which is exactly why the first mistake above is so common.
Limitations of this estimate
This is a federal-only planning figure, not a filed return. It does not include state income tax, which you must add on top wherever your state charges it. It does not adjust for the qualified business income deduction (up to 20% of qualified business income), retirement contributions, the premium tax credit, or any other above-the-line item — each of which shrinks the income-tax layer. It assumes level income across four equal quarters; if your earnings are lumpy, the Form 1040-ES annualized income worksheet lets you size each payment to the quarter it covers instead. And the income-tax rate you enter is doing real work in the result: an effective rate understates the marginal cost of the next dollar, a marginal bracket overstates a low year, so re-run the calculator whenever a contract changes size rather than trusting January's number in October.
See also
For the deadlines, the penalty mechanics, and a safe-harbor worked example on different numbers, read the quarterly estimated taxes guide. To turn this annual figure into a percentage you move on the day each invoice clears, use the tax set-aside calculator. If you started from gross 1099 billings rather than net profit, the 1099 tax calculator walks from gross to net first. Estimate only — for education, not tax advice; confirm your figures with IRS Publication 1040-ES or a tax professional.
Every figure above is hand-checked: the worked example was recomputed independently of the calculator code, and tax figures track 2026 IRS limits. How we check every page.