Quarterly Estimated Tax Calculator

Why freelancers pay taxes four times a year

When you work for yourself, no employer withholds taxes from your pay — so the IRS expects you to send estimated payments four times a year using Form 1040-ES. Skip them and you can owe an underpayment penalty at filing time, even if you pay everything in April. This calculator gives you a quick, realistic ballpark of each payment so you can set money aside with confidence. Everything runs in your browser; your income figures never leave your device.

The math behind the estimate

Two pieces make up your bill. First, self-employment tax: the IRS taxes 92.35% of your net income at 15.3% (12.4% Social Security + 2.9% Medicare). On $60,000 of net income, that is 15.3% of $55,410 — about $8,478. Second, ordinary income tax, estimated here with the effective rate you enter (picking a filing status pre-fills a typical starting rate you can adjust). The two are added together and split into four equal payments, alongside the standard due dates: April 15, June 15, September 15, and January 15 of the following year.

How to use it

1. Enter your expected annual net income — revenue minus business expenses, not gross sales.
2. Pick your filing status, then fine-tune the effective income tax rate (last year's return is a good guide: total tax ÷ taxable income).
3. Read your per-quarter amount and the four due dates — results update as you type.
4. Set the money aside in a separate account and pay via IRS Direct Pay or EFTPS.

Estimates only — not tax, financial, or legal advice. Deductions, credits, state taxes, and the Social Security wage cap can change your real bill.

FAQ

Do I even need to make quarterly payments?

Generally yes, if you expect to owe $1,000 or more for the year after withholding and credits. Below that, you can usually settle up at filing time without penalty.

What is a good effective income tax rate to use?

Divide last year's total tax by your taxable income. Many self-employed people land between 8% and 18% federally; the calculator suggests a starting point per filing status.

Why is self-employment tax calculated on 92.35% of income?

The IRS lets you exclude the equivalent of the employer's share before applying the 15.3% rate — that adjustment is 100% − 7.65% = 92.35%. Half of the SE tax is also deductible on your return, which this simple estimate doesn't model.

What if my income changes mid-year?

Recalculate each quarter with your updated annual projection and adjust the remaining payments. The IRS also allows annualized payments if income arrives unevenly.