Estimated Tax Payments: When You Need Them and How to Pay
Do You Need to Make Estimated Tax Payments?
You may need to make estimated tax payments if you earn income that isn’t subject to withholding, such as:
- Self-employment income
- Interest
- Dividends
- Alimony
- Rental income
- Realized investment gains
- Prizes and awards
You may also owe estimated tax payments if:
- The tax withheld from your salary, pension, or other income isn’t enough to cover what you’ll owe, or
- You had a tax liability in the prior year
Because every financial situation is different, it’s a good idea to consult a professional with tax expertise regarding your individual circumstances.
How to Calculate Estimated Tax
To calculate your estimated tax, you’ll need to project the following for the year:
- Adjusted gross income
- Taxable income
- Taxes owed
- Deductions
- Credits
Many taxpayers use their prior year’s federal tax return as a starting point, then adjust for any expected changes in income, deductions, or credits.
Estimated Tax Payment Requirements
If you file as a sole proprietor, partner, S corporation shareholder, or self-employed individual, and expect to owe $1,000 or more in tax for the year, you’re generally required to make estimated tax payments.
To calculate and pay, use IRS Form 1040-ES, Estimated Tax for Individuals.
How to Pay Estimated Taxes
You can submit IRS estimated tax payments a few different ways:
- Online through the IRS payment portal
- By phone
- By mail
Estimated Tax Payment Due Dates
The tax year is divided into four payment periods, each with its own due date. For the 2026 tax year, the estimated tax payment due dates are:
| Payment Period | Income Earned | Due Date |
|---|---|---|
| 1st Payment | January 1 – March 31, 2026 | April 15, 2026 |
| 2nd Payment | April 1 – May 31, 2026 | June 15, 2026 |
| 3rd Payment | June 1 – August 31, 2026 | September 15, 2026 |
| 4th Payment | September 1 – December 31, 2026 | January 15, 2027 |
If a due date falls on a weekend or legal holiday, the payment is due the next business day.
Note: You can skip the January 15, 2027 payment if you file your 2026 tax return and pay your full balance due by February 1, 2027.
What Happens If You Don’t Pay Enough?
If you don’t pay enough tax by each payment period’s due date, you may be charged a penalty — even if you’re due a refund when you file your return.
Who Can Avoid the Estimated Tax Penalty?
Generally, you can avoid the underpayment penalty if any of the following apply:
- You owe less than $1,000 in tax after subtracting your withholding and credits
- You paid at least 90% of your current year’s tax liability
- You paid 100% of the tax shown on your prior year’s return (110% if your prior-year adjusted gross income was more than $150,000) — whichever amount is smaller
Frequently Asked Questions About Estimated Tax Payments
Who needs to make estimated tax payments?
Anyone who earns income not subject to withholding — such as self-employment income, interest, dividends, alimony, rent, capital gains, prizes, or awards — may need to make estimated tax payments. You may also need to pay if your regular withholding doesn’t cover your full tax liability.
How do I calculate my estimated tax payments?
To calculate estimated tax, project your expected adjusted gross income, taxable income, deductions, and credits for the year. Your prior year’s federal tax return is often a helpful starting point for these projections.
What form do I use to pay estimated taxes?
Individuals, sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more use IRS Form 1040-ES, Estimated Tax for Individuals, to calculate and pay estimated tax.
When are estimated tax payments due?
For the 2026 tax year, estimated tax payments are due April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. If a due date falls on a weekend or holiday, it moves to the next business day.
What happens if I don’t pay enough estimated tax?
You may be charged an underpayment penalty, even if you’re due a refund at tax time. You can generally avoid this penalty if you owe less than $1,000 after withholding and credits, or if you’ve paid at least 90% of your current year’s tax or 100% (110% for higher earners) of your prior year’s tax, whichever is smaller.
How can I pay my estimated taxes?
You can pay IRS estimated tax payments online, by phone, or by mail using the vouchers included with Form 1040-ES.
Have Questions About Your Estimated Tax Payments?
Self-employment income, rental property, and investment gains are common in Southwest Florida, and getting estimated tax payments right can be confusing. If you’re unsure whether you need to make estimated tax payments or how to calculate them, a Fort Myers-based financial professional can help you review your individual tax situation.
