Individual tax
Estimated Tax Payments: Who Pays, Due Dates and How to Avoid Penalties
By the Elite B Tax Services team 5 min readUpdated October 7, 2026
The short answer
If you expect to owe $1,000 or more when you file (individuals) or $500 or more (corporations), you generally need to pay estimated tax during the year. For individuals the usual due dates are April 15, June 15, September 15 and January 15. You usually avoid the underpayment penalty by paying at least 90% of this year's tax or 100% of last year's (110% if your AGI was over $150,000).
Who needs to pay
- Freelancers, 1099 contractors and sole proprietors with no withholding.
- Landlords, including those with rental income from India.
- Investors with large dividends or capital gains.
- Employees whose withholding doesn't cover other income — raising W-4 withholding is an alternative.
Due dates for individuals
| Income earned | Payment due |
|---|---|
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15 of the next year |
A due date on a weekend or legal holiday moves to the next business day.
The safe-harbor rule
You generally won't owe an underpayment penalty if your payments and withholding cover the smaller of 90% of this year's tax or 100% of last year's tax. If your adjusted gross income last year was more than $150,000, the prior-year figure is 110%.
How to pay
Use Form 1040-ES to work out the amount, then pay online through your IRS account or IRS Direct Pay, by phone, through the IRS2Go app, or by mail with a voucher. Most states have their own estimated payments too.
Sources: IRS — Estimated taxes · IRS — Form 1040-ES · IRS — Publication 505
This guide is general information, not tax or legal advice for your situation. Rules and inflation-adjusted amounts change — contact us before you file. Read our disclaimer and editorial policy.