Q4 Estimated Tax Due January 15, 2027: How Much to Pay and How to Catch Up
If you freelance, drive for a delivery app or have any other income without withholding, the last estimated tax payment for 2026 is due on January 15, 2027. It covers income earned from September 1 to December 31, 2026. This guide explains how much to send, what to do if you skipped earlier payments, and the one case where you can skip the January payment entirely.
Do you need to pay?
The IRS expects estimated payments if you will owe $1,000 or more for 2026 after subtracting withholding and refundable credits. Typical cases:
- Self-employment and 1099-NEC or 1099-K income
- A side business on top of a W-2 job, when the job's withholding does not cover the extra tax
- Rental profits, interest, dividends or capital gains with no withholding
Self-employed people owe two taxes on their profit: self-employment tax (Social Security and Medicare, 15.3% on 92.35% of net earnings up to the 2026 wage base) and regular income tax. Both are covered by estimated payments.
The 2026 schedule
| Payment | Income earned | Due date |
|---|---|---|
| 1st | January 1 – March 31 | April 15, 2026 |
| 2nd | April 1 – May 31 | June 15, 2026 |
| 3rd | June 1 – August 31 | September 15, 2026 |
| 4th | September 1 – December 31 | January 15, 2027 |
How much to pay in January
You avoid the underpayment penalty if your withholding plus on-time estimated payments reach the smaller of:
- 90% of your 2026 tax, or
- 100% of your total 2025 tax (110% if your 2025 adjusted gross income was over $150,000, or $75,000 if married filing separately).
Each quarter's share of that target is one quarter. If you made the first three payments on schedule, the January payment is simply the last quarter: target minus withholding, divided by four.
Example. A single freelancer expects $60,000 of 2026 profit and has no job. Her 2025 return showed $9,000 of total tax and her AGI was under $150,000. Her 2026 tax works out to about $12,037, so 90% is $10,833. The smaller target is last year's $9,000, or $2,250 a quarter. If she paid $2,250 in April, June and September, she sends $2,250 by January 15, 2027 and pays the remaining balance of about $3,037 with her return, with no penalty.
Use the quarterly estimated tax calculator with your own numbers; it applies both safe-harbor rules and subtracts payments you have already made.
If you missed earlier quarters
The penalty is figured separately for each quarter, from the date each payment was due until it is paid. That has three practical consequences:
- Pay now rather than in April. A missed June or September payment keeps building a penalty every day it is late. Paying the shortfall as soon as possible stops it.
- A big January payment does not erase earlier penalties, but it stops them from growing and covers the fourth quarter.
- The penalty works like interest, at the federal short-term rate plus 3 percentage points, figured on Form 2210. For a few months on a few thousand dollars, it is usually modest. It is much smaller than the tax itself, so do not let it stop you from paying.
To catch up, add up the target for the first four quarters, subtract what you have paid and what has been withheld, and send the difference. The calculator does this when you enter "estimated payments already made".
Income that arrived late in the year
If most of your 2026 income came in the fall, perhaps because you started freelancing mid-year or landed a large contract in November, you may not have owed much for the early quarters at all. The annualized income installment method (Form 2210, Schedule AI) bases each quarter's required payment on the income you had actually earned by then. It takes more work, but it can reduce or remove the penalty for the early quarters.
When you can skip the January payment
You do not have to make the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the entire balance due with it. This only replaces the fourth payment; it does not cancel penalties on earlier quarters you missed. It suits people who have their 1099s and records ready early in January.
Farmers and fishermen have their own rule: one payment by January 15, 2027, or filing and paying in full by March 1, 2027, with a 66⅔% target instead of 90%.
Have a W-2 job too? Use withholding instead
Federal tax withheld from wages counts as paid evenly through the year, whenever it was actually taken out. If you have a job alongside your side income, you can ask your employer to withhold extra from your remaining 2026 paychecks (Form W-4, Step 4(c)). Extra withholding in December counts as if it had been paid across all four quarters, which can fix earlier shortfalls. The paycheck calculator shows what extra withholding does to your take-home pay.
How to pay
- IRS Direct Pay (free, from a bank account) or your IRS Online Account.
- EFTPS, the Treasury's free payment system, which lets you schedule payments in advance.
- Debit or credit card through an IRS-approved processor (a fee applies).
- A check with the Form 1040-ES voucher.
Whichever method you use, choose estimated tax and tax year 2026. A payment applied to the wrong year or type is the most common reason a payment "disappears".
Don't forget the state
Most states with an income tax also want quarterly estimates, often due on or near the same dates. Check your state revenue department's site; state rules and safe-harbor percentages vary.
Plan for 2027
When you file your 2026 return, you will know your total 2026 tax. That number becomes your safe-harbor base for 2027: paying 100% of it (110% above $150,000 AGI) in four equal payments protects you from the penalty even if your 2027 income grows. Our 1099 tax calculator estimates the full-year bill.
This guide covers federal estimated tax for individuals in general terms and is not tax advice. Sources: IRS Form 1040-ES (2026), Estimated Tax for Individuals; IRS Publication 505, Tax Withholding and Estimated Tax; IRS Form 2210 instructions.