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Quarterly Estimated Taxes
If your income is not covered by withholding, the IRS expects it paid across the year rather than in one lump in April — and charges interest when it is not.
Who this applies to
Sole proprietors, partners, S-corporation owners taking distributions, landlords, and anyone whose income arrives without tax already withheld. If you have both a job and a business, withholding from the job may cover some of it — which is exactly the calculation worth doing rather than guessing.
The four payment dates
For calendar-year taxpayers, estimated payments are generally due April 15, June 15, September 15 and January 15 of the following year. When a date falls on a weekend or holiday it moves to the next business day. Note the periods are not equal quarters, which is one reason estimating from “a quarter of last year’s tax” goes wrong.
Underpaying is not free. Interest on underpayments runs at 7% per year, compounded daily for individuals for the fourth quarter of 2026, effective 1 October 2026. The IRS sets this rate quarterly, so it moves.
How we work it out
- Start from where the business actually is this year, using current books rather than last year’s return alone.
- Account for withholding you already have from other sources.
- Set an amount per payment, and revisit it when the business changes — a strong quarter or a large purchase both move the number.
- Fold the result into your personal return at filing time.
If you have fallen behind on payments
Missing a quarter is not a catastrophe and not a reason to skip the next one. Interest accrues on what was underpaid, and the fastest way to stop it growing is to bring the remaining payments up to where they should be. We will tell you what that number is.
Interest rate per the IRS: Interest rates remain the same for the fourth quarter of 2026. Verified September 2026; the IRS resets this quarterly.
Talk to us about your return
Tell us what you need filed and we will tell you what it involves and what it costs. New inquiries get a response within the week.
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