Estimated Tax Calculator
Estimate your quarterly tax payments as a self-employed worker.
Your Details
How It Works
- Enter your expected net self-employment earnings for the year.
- Enter your deductions.
- Press Calculate to see your quarterly payment estimate.
Formula Used
Good to Know
- • The IRS generally expects self-employed workers to pay as they go, not just at filing.
- • Underpaying quarterly can trigger a penalty even if the full amount is paid by April.
Important Notes
- • Doesn't include state estimated tax, which is often also required.
- • Actual quarters aren't perfectly even (Q4 payment is due mid-January).
Why Self-Employed Workers Pay Quarterly
Employees have tax withheld automatically from every paycheck; self-employed workers don't have that automatic system, so the IRS requires estimated payments four times a year to keep tax collection roughly evenly spread out. Skipping these payments and settling everything at filing time can trigger an underpayment penalty, even if the full balance is eventually paid.
Two Taxes Bundled Into One Payment
The quarterly estimate combines both self-employment tax (Social Security and Medicare) and regular federal income tax, since both are typically paid together as part of the same quarterly estimated payment. It's worth revisiting this estimate if income fluctuates significantly during the year, since a big swing in one quarter can throw off a flat even-split estimate.
A Few Terms Worth Defining
- Quarterly estimated payments — tax payments self-employed workers make four times a year, since there's no employer withholding.
- Safe harbor — a rule that avoids underpayment penalties if withholding/payments meet certain thresholds (not modeled in detail here).
See It In Action: Quarterly Payments on $90,000 Net Earnings
Federal income tax (after SE deduction, standard deduction) ≈ $9,320
Total annual tax ≈ $22,037
Quarterly payment ≈ $5,509
Missing even one quarterly payment can trigger a penalty for that period specifically — spreading the full annual liability evenly across four payments, as shown here, is the simplest way to stay current throughout the year.
Net Earnings Level Table
| Net Earnings | Quarterly Payment |
|---|---|
| $60,000 | ≈$3,470 |
| $90,000 | ≈$5,509 |
| $120,000 | ≈$7,650 |
Frequent Errors With Estimated Tax Payments
- Skipping a quarter when income is low — each quarter is evaluated somewhat independently for penalty purposes.
- Forgetting state estimated payments — many states require their own quarterly estimates too.