Estimated Tax Payments: Who Pays Quarterly and When

Who has to make estimated tax payments?

You generally make federal estimated tax payments when no one withholds tax from some of your income. The IRS says that if you are in business for yourself, you generally need to make them. They cover income tax and also other taxes, such as self-employment tax.

Other income can trigger them too. The IRS lists interest, dividends, capital gains, prizes and awards. If the tax withheld from your salary or pension is not enough, you may need to pay the gap during the year.

This is the pay-as-you-go rule. The IRS wants tax paid as you earn income, not all at once in April.

When are estimated tax payments due for tax year 2026?

For tax year 2026, the IRS Form 1040-ES gives four due dates. Each date covers a set stretch of the year. The table shows them.

The IRS tax calendar confirms the third installment of 2026 estimated tax for individuals falls on September 15, 2026. You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the entire balance due with it. Fiscal-year taxpayers and farmers or fishers follow different rules. See IRS Publication 505 for those cases.

Dates change from year to year. The 2027 dates will appear on the 2027 Form 1040-ES. Check the due dates page and the IRS before you pay.

How much should I pay to avoid a penalty?

Pay enough by each due date that you stay inside an IRS safe harbor. For tax year 2026, the IRS gives two common tests. You can owe less than $1,000 after withholding and refundable credits. Or you can pay at least 90% of the current year’s tax, or 100% of the prior year’s tax shown on your return, whichever is smaller.

The IRS adds that special rules apply to farmers, fishers, household employers and certain higher-income taxpayers. If your income is high, the prior-year test may not work the same way for you.

The IRS says to pay in four equal amounts. Equal payments are simple. They do not suit every year, so ask a CPA to check your numbers.

Does Texas collect estimated income tax too?

No. The Texas Comptroller states that Texas has no state income tax. A Texas resident makes federal payments only, unless the person also owes tax to another state on income earned there.

Texas business entities may still owe other state taxes, such as franchise tax. Estimated payments for those are a separate topic. See our Texas franchise tax glossary entry.

What if I miss a payment or my income is uneven?

You may owe an underpayment penalty even if you get a refund when you file. The IRS says this directly: a late payment can bring a penalty even when you are due a refund.

If your income arrives unevenly, you may be able to use the annualized installment method. You report it on Form 2210. The IRS can also waive the penalty in narrow cases, such as a casualty event, disaster or other unusual circumstance, or retirement after age 62 or disability. Those waivers depend on the facts.

Good records make all of this easier. A steady bookkeeping routine shows what you earned each period. Read more about estimated tax payments in our glossary.

How do I make the payment?

You can pay online or by mail. The IRS offers electronic payment options, and the Form 1040-ES packet includes payment vouchers for people who pay by check or money order. The vouchers say to file one only if you are making a payment of estimated tax by check or money order. Write your Social Security number and “2026 Form 1040-ES” on the check, and do not send cash.

Keep proof of each payment. If the IRS later asks, a dated record of what you paid and when settles most questions. Our due dates page lists the other dates in your year.

Next step

Wallace CPA offers tax planning for individuals and business owners. Call (877) 682-1171 or use the form at /contact to talk through your payments.

This post is general information, not advice for your situation. Talk to a CPA about your own situation before you decide how much to pay.