# What is Estimated Quarterly Tax?

Country: United States

US self-employed people, freelancers and partners must pay estimated federal income tax (and self-employment tax) quarterly via Form 1040-ES. Due dates: 15 April, 15 June, 15 September, and 15 January of the following year.

## Current rate (Quarterly through the calendar year)

Pay 25% of expected annual tax each quarter

## Example

A freelancer expecting $20,000 federal income tax + $12,000 SE tax = $32,000 total pays $8,000 each quarter via IRS Direct Pay or EFTPS. Underpayment triggers Form 2210 penalty.

## How Estimated Quarterly Tax works in United States

Safe-harbor rules: avoid underpayment penalty if you pay either 90% of current year tax OR 100% of prior year tax (110% if prior AGI was >$150,000), evenly across the four quarters.

The 'quarters' are not calendar quarters: they're roughly 3, 2, 3, 4 months long. Q1 covers 1 January – 31 March (due 15 April), Q2 covers April–May (due 15 June), Q3 covers June–August (due 15 September), Q4 covers September–December (due 15 January next year).

Source: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

## Related terms

- [Self-Employment Tax](https://accounts-os.com/us/glossary/self-employment-tax)