Estimated taxes guide for 2025-2026
Estimated taxes are quarterly payments for income without withholding, like self-employment or investment income. This guide explains who must pay in 2025-2026, how to estimate the amount, and which calculators help you avoid underpayment penalties.
Who needs to pay estimated taxes
- Self-employed earners without payroll withholding.
- Investors or retirees with significant non-wage income.
- Taxpayers who expect to owe above IRS thresholds.
How to estimate the right amount
- Estimate total annual tax using income, deductions, and credits.
- Subtract withholding and divide the remaining balance into quarters.
- Use safe harbor rules to reduce penalty risk.
Avoid underpayment penalties
Penalties apply if you underpay throughout the year, even with a refund at filing.
- Track income changes and recalc mid-year.
- Use safe harbor thresholds to stay protected.
Related calculators
Quarterly estimated payments planner
Plan quarterly payments based on projected income.
Estimated tax due (simple)
Estimate total tax before payments.
Safe harbor estimator
Check IRS safe harbor targets.
Penalty + interest estimator
Estimate penalties if you underpay.
Underwithholding penalty risk
Gauge underpayment penalty exposure.
FAQ
Do I still need estimated payments if I have a W-2 job?
Possibly. If withholding doesn’t cover total tax, estimated payments may still be required.
Updated 2026-01-20. TaxGuide Pro provides educational tax guidance, not legal advice.