When are quarterly taxes due in 2026

Understanding when quarterly taxes are due is essential for self-employed Individuals, business owners, and anyone with income that isn't subject to withholding. Missing quarterly tax deadlines can result in underpayment penalties, interest charges, and unnecessary financial stress. This comprehensive guide outlines the 2026 quarterly tax due dates, explains who needs to pay estimated taxes, and provides strategies for accurate calculation and timely payment.

The federal tax system operates on a pay-as-you-go basis, requiring taxpayers to pay taxes throughout the year as income is earned rather than waiting until the annual filing deadline. For most employees, this requirement is satisfied through payroll withholding. However, self-employed professionals, business owners, investors, and others with substantial non-wage income must make quarterly estimated tax payments directly to the IRS and applicable state tax authorities.

Properly managing quarterly tax obligations requires understanding the payment schedule, accurately estimating your tax liability, and implementing systems to ensure timely compliance. Strategic planning around these deadlines can help optimize cash flow while maintaining compliance with tax regulations.

2026 quarterly tax payment deadlines

The IRS establishes four quarterly tax payment deadlines each year, though the periods they cover are not precisely equal quarters. For the 2026 tax year, taxpayers must make estimated tax payments on the following dates:

First quarter payment - April 15, 2026: This payment covers income earned from January 1 through March 31, 2026. The first quarter payment is due on the same day as the prior year's tax filing deadline, creating additional administrative complexity for many taxpayers.

Second quarter payment - June 15, 2026: This payment covers income earned from April 1 through May 31, 2026. Note that this period represents only two months of income rather than a full three-month quarter.

Third-quarter payment - September 15, 2026: This payment covers income earned from June 1 through August 31, 2026, for the entire three-month period.

Fourth quarter payment - January 15, 2027: This payment covers income earned from September 1 through December 31, 2026. This final payment is due in the following calendar year, shortly before the annual tax return filing deadline.

When any quarterly tax deadline falls on a weekend or federal holiday, the due date shifts to the next business day. Taxpayers should mark these dates on their calendars and set reminders well in advance to ensure timely payment. Instead platform provides automated deadline tracking and payment reminders to help Individuals and businesses stay organized throughout the year.

Who needs to pay quarterly taxes

Determining whether you need to make quarterly tax payments depends on your income sources, withholding amounts, and expected tax liability. Generally, you must make quarterly estimated tax payments if you expect to owe at least $1,000 in federal income tax after subtracting withholding and refundable credits.

Self-employed Individuals and business owners

Self-employed professionals, including freelancers, consultants, and independent contractors, typically have no income tax withholding from their earnings. These Individuals must make quarterly estimated payments covering both income tax and self-employment tax. Business owners operating as sole proprietors, partners in Partnerships, or shareholders in S Corporations generally fall into this category.

Implementing the Home office deduction and properly tracking Travel expenses can reduce the income subject to quarterly estimated tax payments while maintaining compliance with IRS requirements.

Investors and rental property owners

Individuals receiving substantial investment income from dividends, interest, or capital gains may need to make quarterly payments if withholding from other income sources doesn't cover their total tax liability. Investors implementing Tax loss harvesting strategies throughout the year can reduce their quarterly tax obligations by offsetting gains with realized losses.

Rental property owners must make quarterly payments on net rental income after deducting eligible expenses such as mortgage interest, property taxes, insurance, repairs, and Depreciation and amortization. Strategic tax planning for real estate investors includes timing property sales and maximizing available deductions to optimize quarterly payment amounts.

Retirees and pension recipients

Retirees may need to make quarterly tax payments if their pension distributions, Social Security benefits, and investment income do not generate sufficient withholding to cover their tax liability. While pensioners can request voluntary withholding from their distributions, those who choose not to do so must make quarterly estimated payments.

Exemptions from quarterly tax requirements

Certain taxpayers are exempt from the quarterly payment requirement even when they expect to owe more than $1,000 in taxes. You don't need to make quarterly payments if you had no tax liability in the previous year, were a U.S. citizen or resident for the entire year, and your previous tax year covered 12 months. Additionally, if you receive income exclusively from wages and have sufficient withholding to cover at least 90% of your current year's tax liability, quarterly payments aren't necessary.

Calculating your quarterly tax payments

Accurately calculating quarterly tax payments requires estimating your annual income, deductions, and credits, then dividing your projected tax liability into quarterly installments. The IRS provides Form 1040-ES (Estimated Tax for Individuals) to help calculate these payments, while business entities use different forms based on their structure.

Methods for calculating estimated taxes

Standard calculation method: This approach involves projecting your total annual income, subtracting estimated deductions, applying current tax rates, and dividing the result by four. While straightforward, this method works best for taxpayers with relatively stable income throughout the year.

Prior-year safe-harbor method: This conservative approach bases quarterly payments on your prior-year tax liability. If you pay at least 100% of last year's total tax (110% if your adjusted gross income exceeds $150,000), you'll avoid underpayment penalties regardless of your current year's actual liability. This method provides certainty and simplicity but may result in overpayment if your income decreases significantly.

Annualized income method: Taxpayers with fluctuating seasonal income can use the annualized income method to calculate quarterly payments based on actual income earned during each period. This approach requires more complex calculations but can prevent overpayment in low-income quarters and reduce the risk of penalties in high-income periods.

Components of quarterly tax calculations

When calculating quarterly tax payments, include the following components:

• Federal income tax on ordinary income at progressive tax rates
• Self-employment tax (15.3% on net business income up to the Social Security wage base, plus 2.9% Medicare tax on all net earnings)
• Additional Medicare tax (0.9% on earned income exceeding $200,000 for single filers or $250,000 for married filing jointly)
• Alternative minimum tax (AMT) if applicable
• Net investment income tax (3.8% on certain investment income for higher-income taxpayers)
• State and local income taxes are applicable

Contributing to a Traditional 401k or Health savings account reduces the income subject to quarterly estimated taxes through pre-tax contributions, providing both immediate tax relief and long-term savings benefits.

Adjusting payments throughout the year

Tax situations change throughout the year due to business fluctuations, investment activity, life events, or unexpected income. The IRS allows taxpayers to adjust subsequent quarterly payments to reflect these changes. If your income increases substantially in the middle of the year, increase your remaining quarterly payments proportionally to avoid underpayment penalties. Conversely, if income decreases or you incur deductible losses, reduce subsequent payments accordingly.

Regular review of year-to-date income and expenses helps identify necessary adjustments before the next payment deadline. The tax reporting features on modern tax platforms provide real-time visibility into your tax position, enabling proactive adjustments to quarterly payment amounts.

Payment methods and procedures

The IRS offers multiple convenient methods for making quarterly tax payments, each with specific advantages and considerations.

Electronic payment options

Direct Pay: The IRS Direct Pay system allows taxpayers to schedule payments directly from their checking or savings account at no cost. This service provides immediate confirmation and allows payments to be scheduled up to 365 days in advance.

Electronic Federal Tax Payment System (EFTPS): EFTPS requires enrollment but offers the most comprehensive electronic payment capabilities, including the ability to schedule multiple future payments simultaneously. Business entities often prefer EFTPS for its robust tracking and documentation features.

Credit or debit card payments: Third-party payment processors accept credit and debit card payments for a convenience fee typically ranging from 1.87% to 1.99% of the payment amount. While more expensive, this option may be worthwhile when earning credit card rewards or managing cash flow timing.

Same-day wire transfer: For last-minute payments, same-day wire transfers ensure funds are received by the deadline, though financial institutions typically charge substantial fees for this service.

Paper payment by mail

Taxpayers can mail quarterly estimated tax payments using the payment vouchers included with Form 1040-ES. Include a check or money order payable to "United States Treasury" along with the appropriate voucher indicating the tax year and payment period. Mail payments sufficiently in advance to ensure timely receipt, as postmark dates determine timeliness.

State quarterly tax payments

Many states require quarterly estimated tax payments in addition to federal obligations. State payment procedures, deadlines, and calculation methods vary by jurisdiction. Check your state's revenue department website for specific requirements, as some states align their deadlines with federal dates while others use different schedules. The State Tax Deadlines resource provides comprehensive information about filing requirements across all 50 states.

Avoiding underpayment penalties

The IRS imposes penalties when taxpayers fail to pay sufficient estimated taxes throughout the year. Understanding the penalty calculation and safe harbor provisions helps avoid these unnecessary costs.

Penalty calculation

The underpayment penalty functions as interest on the amount you should have paid earlier in the year. The IRS calculates penalties separately for each quarterly period and applies different interest rates based on the federal short-term rate plus 3 percentage points. Even if you receive a refund when filing your annual return, you may still owe an underpayment penalty if quarterly payments were insufficient or late.

Safe harbor rules

The IRS provides "safe harbor" provisions that protect taxpayers from penalties even when their quarterly payments fall short of their actual annual tax liability:

100% of prior year tax: If your quarterly payments total at least 100% of the tax shown on your previous year's return, you avoid penalties regardless of your current year's liability.

110% rule for high earners: Taxpayers with adjusted gross income exceeding $150,000 ($75,000 for married filing separately) must pay 110% of the prior year's tax to qualify for this safe harbor.

90% of current year tax: Alternatively, paying at least 90% of your current year's actual tax liability through quarterly payments and withholding avoids penalties.

Special circumstances and exceptions

The IRS waives underpayment penalties in certain circumstances, including casualty, disaster, or other unusual situations in which it would be inequitable to impose penalties. First-year farmers and fishermen have special rules allowing them to make just one payment by January 15 instead of quarterly payments. Additionally, taxpayers who had no tax liability in the previous year and were U.S. citizens or residents for the entire year are exempt from quarterly payment requirements.

Strategic tax planning for quarterly obligations

Effective management of quarterly tax payments extends beyond mere compliance to encompass strategic planning that optimizes cash flow and minimizes overall tax liability.

Timing income and deductions

Self-employed Individuals and business owners have flexibility in timing income recognition and deductible expense payments. Deferring income to later quarters or accelerating deductible expenses into earlier periods can reduce quarterly payment requirements. However, such strategies must be implemented in accordance with legitimate business and tax accounting principles.

Coordinating business and individual strategies

Business owners should coordinate their entity-level tax strategies with personal quarterly obligations. For instance, taking reasonable compensation from an S Corporation generates withholding that counts toward quarterly requirements, while implementing the Augusta rule for renting your home to your business creates deductible expenses that reduce quarterly tax obligations.

Leveraging tax credits throughout the year

Planning for tax credits can significantly impact quarterly payment calculations. Business owners should consider the Work opportunity tax credit when hiring from targeted groups, while parents implementing a Hiring kids strategy can reduce family tax liability while building children's earned income for retirement contributions.

Maximize tax efficiency with quarterly planning

Understanding when quarterly taxes are due in 2026 represents just the first step toward effective tax management. Strategic planning around these deadlines, accurate calculation of payment amounts, and proactive adjustment throughout the year help optimize cash flow while maintaining full compliance with tax obligations.

Instead's comprehensive tax platform seamlessly integrates quarterly tax management with broader tax planning strategies, ensuring you never miss a deadline while maximizing available deductions and credits. Instead's intelligent system automatically tracks your income and expenses, calculates estimated quarterly payment amounts, and provides timely reminders before each deadline.

The Instead platform delivers comprehensive visibility into your tax position throughout the year, enabling informed decisions about quarterly payments and strategic adjustments as circumstances change. From identifying eligible deductions to implementing advanced tax strategies, Instead provides the tools and insights needed to minimize your tax liability while maintaining compliance.

Transform your quarterly tax management with technology designed specifically for taxpayers and their advisors. Explore our comprehensive tax platform, discover tax savings opportunities throughout the year, access detailed tax reporting capabilities, and review our flexible pricing plans designed to support your tax planning needs.

Frequently asked questions

Q: What happens if I miss a quarterly tax payment deadline?

A: Missing a quarterly tax deadline typically results in an underpayment penalty calculated as interest on the unpaid amount from the due date until you make the payment. The penalty applies even if you receive a refund when filing your annual return. You should make the missed payment as soon as possible and include it with your next scheduled quarterly payment to minimize penalty accumulation.

Q: Can I avoid quarterly tax payments by increasing my W-2 withholding?

A: Yes, if you have wages subject to withholding, you can increase your withholding amount to cover taxes on your additional income rather than making quarterly estimated payments. The IRS treats withholding as paid evenly throughout the year, regardless of when it's actually withheld, potentially avoiding underpayment penalties even if you increase withholding late in the year.

Q: How do I calculate quarterly taxes when my income fluctuates significantly throughout the year?

A: Taxpayers with variable income can use the annualized income installment method, which calculates separate payment amounts for each quarter based on actual income earned during that specific period. This approach requires more complex calculations using Form 2210 Schedule AI but can prevent overpayment in low-income quarters and reduce underpayment penalties during high-income periods.

Q: Do I need to make state quarterly tax payments in addition to federal payments?

A: Most states with income taxes require quarterly estimated tax payments following procedures similar to federal requirements. However, specific deadlines, calculation methods, and safe harbor provisions vary by state. Some states align their payment schedule with federal deadlines, while others use different dates. Check your state revenue department's website for specific requirements.

Q: What safe harbor rule should I use to avoid underpayment penalties?

A: The choice depends on your situation. If your income is relatively stable, the 100% of prior year tax method (110% for high earners) provides certainty and avoids penalties regardless of your current year's actual liability. If you expect a significantly lower income this year, paying 90% of your current year's actual tax may require smaller payments. Consider your cash flow needs, income predictability, and risk tolerance when selecting an approach.

Q: Can business owners deduct quarterly estimated tax payments as business expenses?

A: No, quarterly estimated tax payments are not deductible business expenses. These payments represent your personal or business income tax liability, which is paid from after-tax income. However, certain taxes paid by businesses, such as state franchise taxes, employer payroll taxes, and real property taxes, are deductible as business expenses.

Q: How do I adjust my quarterly payments if my income changes mid-year?

A: You can adjust subsequent quarterly payments to reflect changes in your income or tax situation. Calculate your updated annual tax liability based on your revised income projection, subtract any payments already made, and divide the remaining amount among the remaining payment periods. The IRS doesn't require equal quarterly payments as long as you meet safe harbor requirements or pay at least 90% of your actual annual tax liability.