Last year’s return tells you how much estimated tax to send. Pay a quarter of its tax on each of the four due dates, minus a quarter of this year’s withholding, and the IRS can’t charge an underpayment penalty. Use 110% of that tax instead if last year’s adjusted gross income topped $150,000 ($75,000 married filing separately).
Using last year’s number beats forecasting this year’s income, because the penalty is figured one installment at a time. Guess low, and the IRS charges it on each payment that falls short, for every day until the gap is paid, even if your return covers the whole bill in April.
The IRS’s safe harbor rule protects you once your withholding and on-time payments reach the smaller of 90% of this year’s tax or 100% of last year’s (110% for higher earners). For the payment due January 15, 2027, last year’s figure is the total tax on your 2025 Form 1040, less any refundable credits, such as the earned income credit. That figure already includes any self-employment tax, and the rule works as long as that return covered a full 12 months.
You have to make estimated payments once you expect to owe $1,000 or more when you file, after withholding. Freelancers and gig workers, landlords, investors who sold at a gain, and retirees taking IRA withdrawals with nothing withheld can all owe that much. If your withholding alone covers the safe harbor amount, you can skip them. Withholding counts by default as paid evenly across the four due dates, which is why a quarter of it comes off each payment.
Here are the next four due dates:
- January 15, 2027, the last payment for 2026
- April 15, 2027, the first payment for 2027
- June 15, 2027, the second payment for 2027
- September 15, 2027, the third payment for 2027
Starting with April’s, the 2027 payments are based on your 2026 return, due that same day, and its adjusted gross income decides whether the 110% rule applies. Pay each one through IRS Direct Pay, which is free and needs no sign-in. Choose estimated tax and, for the January payment, tax year 2026.
If you skipped an earlier 2026 payment, pay it along with January’s, since the penalty on it stops growing once it’s paid. Then put all four dates on your calendar next to the year’s other tax deadlines.
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