Quarterly Estimated Taxes for Freelancers: How to Calculate and Pay
The IRS requires freelancers to pay taxes four times a year. Here's exactly how to calculate what you owe, when to pay, and how to avoid underpayment penalties.
Michael Torres
Tax Specialist
Freelancers don't have an employer withholding taxes from paychecks. Instead, the IRS requires you to pay estimated taxes four times a year using Form 1040-ES. If you skip or underpay, you'll owe a penalty — even if you pay the full amount at tax time in April.
2025 Payment Deadlines
- Q1 (Jan 1 – Mar 31): due April 15, 2025
- Q2 (Apr 1 – May 31): due June 16, 2025
- Q3 (Jun 1 – Aug 31): due September 15, 2025
- Q4 (Sep 1 – Dec 31): due January 15, 2026
The Safe Harbor Rule
You avoid the underpayment penalty if you pay at least 100% of last year's total tax liability (110% if your AGI exceeded $150,000). This is the 'safe harbor' approach — you don't need to estimate this year's income precisely. Pay what you paid last year and you're protected.
How to Calculate Each Payment
- Estimate your annual net profit (income minus deductions)
- Calculate self-employment tax: net profit × 0.9235 × 0.153
- Deduct 50% of SE tax from net profit to get adjusted income
- Apply your marginal federal income tax rate
- Add state income tax if applicable
- Divide total annual tax by 4 for each quarterly payment
Accurate quarterly payments start with accurate expense tracking. ReceiptOne keeps a running total of your deductions all year — so each estimate reflects your real tax position.
How to Pay
The easiest method is IRS Direct Pay at irs.gov — free, instant, and no account required. You can also use the IRS2Go app, EFTPS (Electronic Federal Tax Payment System), or mail a check with Form 1040-ES voucher. EFTPS is recommended for freelancers who pay regularly — it allows scheduling payments in advance.