Nobody withholds tax from a freelancer’s invoices. The IRS expects you to do it yourself, in four payments spread across the year. Miss them and you can owe a penalty even if you are due a refund at filing. Here is how the system works, what the last payment of 2026 looks like, and how to make it a routine instead of a scramble.
Key takeaways
- Sole proprietors, partners and S corporation shareholders generally must make estimated payments if they expect to owe $1,000 or more when they file, per the IRS.
- The fourth payment for 2026 covers income from September 1 through December 31 and is due January 15, 2027, a Friday.
- You can generally avoid the underpayment penalty by paying at least 90% of this year’s tax or 100% of last year’s, whichever is smaller; 110% of last year’s applies if your prior-year adjusted gross income was above $150,000 ($75,000 if married filing separately).
- You may pay weekly, monthly or any schedule you like, as long as enough is in by the end of each quarter.
Who has to pay
Estimated tax covers more than income tax. Per the IRS, it pays self-employment tax and other taxes too. You generally must pay if both of these apply: you expect to owe at least $1,000 after withholding and refundable credits, and you expect your withholding and credits to fall below the smaller of 90% of this year’s tax or the prior-year safe harbor. There are special rules for farmers, fishers, certain household employers, higher-income taxpayers and nonresident aliens, per the IRS FAQ.
You do not have to pay for the current year if all three of these hold: you had no tax liability last year, you were a U.S. citizen or resident for the whole year, and last year covered 12 months, per the IRS.
The four dates
The IRS splits the year into four payment periods:
| Income earned | Due date |
| January 1 to March 31 | April 15 |
| April 1 to May 31 | June 15 |
| June 1 to August 31 | September 15 |
| September 1 to December 31 | January 15 of the following year |
The periods are uneven, which surprises people. If a due date lands on a weekend or legal holiday, the payment is on time the next business day. For 2026, April 15 was a Wednesday, June 15 a Monday and September 15 a Tuesday. The final one, January 15, 2027, is a Friday. There is also an exception to paying on January 15; see Chapter 2 of IRS Publication 505.
How much to pay: the safe harbors
You do not need to predict your income perfectly. The IRS says most taxpayers avoid the penalty if they owe less than $1,000 after withholding and credits, or if they paid at least 90% of the current year’s tax or 100% of the prior year’s tax, whichever is smaller. For higher earners, the prior-year figure is 110%.
A computed illustration, not tax advice: if last year’s return showed $12,000 of total tax and your adjusted gross income was under $150,000, paying $12,000 over the year in four equal $3,000 installments meets the prior-year safe harbor, even if this year’s income jumps. The tradeoff is that you may still owe more at filing. Safe harbor protects you from the penalty, not from the bill.
If your income is lumpy, the IRS notes you may lower or avoid the penalty by annualizing income and making unequal payments, using Form 2210. That suits freelancers who earn most of a year’s income in one quarter.
How to pay
Use Form 1040-ES to figure the amount, then pay online, by phone or through the IRS app, or mail a check with the form, per the IRS. Your online IRS account shows payment history. A mailed payment counts on its postmark date. The IRS also says paying weekly or monthly is fine as long as enough is in by each quarter’s end.
Make it a system
Estimated taxes fail when they depend on willpower. Three habits help. Put the payment dates in your calendar with a reminder a week early. Move a fixed share of every paid invoice to a separate account the day it lands, which pairs well with deposits and milestone payments because cash arrives predictably. And if a client pays late, a plan like the late-payment escalation ladder keeps your payment calendar from collapsing. Write your payment terms into client onboarding so none of this surprises you.
Frequently asked questions
When is the last 2026 estimated tax payment due?
January 15, 2027, which is a Friday. It covers income received from September 1 through December 31, 2026, per the IRS payment-period table.
Do I have to pay estimated taxes as a freelancer?
Generally yes, if you expect to owe at least $1,000 when you file and your withholding and credits will be below the safe-harbor amounts, per the IRS.
How do I avoid the underpayment penalty?
Pay at least 90% of this year’s tax or 100% of last year’s, whichever is smaller. If last year’s adjusted gross income was above $150,000 ($75,000 if married filing separately), the prior-year figure is 110%. You can also owe less than $1,000 at filing.
Can I pay monthly instead of quarterly?
Yes. The IRS says you can pay weekly, bi-weekly, monthly or on another schedule, as long as you have paid enough by the end of each payment period.
Method: due dates, safe-harbor percentages, thresholds and payment options from the IRS estimated-tax page (reviewed September 25, 2026) and IRS estimated-tax FAQ, both fully fetched October 22; weekday for each date computed. The $12,000 example is a computed illustration. This article is not tax advice; consult a tax professional.
