Self-employed person reviewing business finances and tax documents
Finance June 2026 · 5 min read ✓ Reviewed for accuracy

Do You Need to Pay Quarterly Taxes When Self-Employed?

Informational only. This article does not constitute insurance, legal, or financial advice. Coverage terms vary by carrier, policy, and jurisdiction. Full disclaimer.

When you work for an employer, they withhold taxes from every paycheck. When you're self-employed, nobody does that for you. The IRS expects you to pay taxes four times a year instead of once. Here's what you need to know.

The rule: If you expect to owe $1,000 or more in federal taxes for the year, you're required to make quarterly estimated tax payments. If you don't, you'll owe a penalty when you file — even if you pay everything by April 15.

When are quarterly payments due?

Apr 15
Q1 payment (Jan–Mar income)
Jun 16
Q2 payment (Apr–May income)
Sep 15
Q3 payment (Jun–Aug income)
Jan 15
Q4 payment (Sep–Dec income)

(Dates shift if they fall on a weekend or holiday.)

How much should you pay?

There are two safe-harbor methods to avoid penalties:

  1. Pay 90% of what you owe this year — you'll need to estimate your income, which is hard if it varies.
  2. Pay 100% of what you owed last year — safer, because you know the exact amount. If last year's total federal tax was $8,000, pay $2,000 per quarter. (If your income was over $150K, use 110% of last year's tax.)
Tip for new businesses: In your first year of self-employment, there's no "last year's taxes" to base it on. Estimate your net profit for the year, calculate 30% of that, and divide by four.

What taxes are you paying?

Your quarterly payments cover two types of federal tax:

Common mistake: Many self-employed people only think about income tax and forget about self-employment tax. That 15.3% adds up fast. A business making $50,000 in profit owes about $7,650 in SE tax alone — before income tax.

How to make the payment

The easiest way: pay online at IRS.gov/payments using IRS Direct Pay or EFTPS (Electronic Federal Tax Payment System). It's free and takes 5 minutes. You can also pay by check using IRS Form 1040-ES.

What about state taxes?

Most states with income tax also require quarterly estimated payments. Check your state's department of revenue website for due dates and payment methods — they vary by state.

Bottom line: Set aside 25–30% of every payment you receive from clients. Make quarterly payments by the due dates. This simple discipline eliminates tax-season surprises and penalties — and keeps you out of trouble with the IRS.

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Disclaimer: This guide is for informational purposes only and is not legal, tax, or insurance advice. Always verify specifics with a licensed professional in your state.