Step-by-step instructions on calculating, estimating, and paying quarterly taxes for 2026 to stay compliant and avoid penalties.
Quarterly taxes are estimated payments freelancers, independent contractors, and gig workers must pay to the IRS four times a year. These payments cover federal income tax and self-employment tax, ensuring you avoid penalties at the end of the year.
Most 1099 workers, freelancers, and gig workers who expect to owe $1,000 or more in taxes must pay quarterly. This includes:
1. Estimate your total annual income.
2. Subtract business expenses to get your net profit.
3. Calculate self-employment tax (15.3% of net profit).
4. Estimate federal income tax based on tax brackets.
5. Apply your state income tax rate if applicable.
6. Divide the total estimated tax by 4 to get quarterly payments.
Use our Quarterly Tax Calculator to simplify these calculations.
Deductible expenses lower taxable income and reduce quarterly payments. Examples include:
Calculate estimated tax payments easily for each quarter of the year.
Estimate federal and state taxes based on your 1099 income quickly and accurately.
Maximize deductible expenses to reduce taxable income as a freelancer or independent contractor.