Guide · Tax
Quarterly Estimated Taxes for the Self-Employed: A Complete Guide
Without an employer withholding tax from every paycheck, self-employed workers must pay the IRS directly four times a year — get the amount wrong and a penalty follows.
Self-employment tax
SE tax applies to 92.35% of your net profit, with the Social Security portion capped at the annual wage base ($184,500 for 2026). Half of the SE tax you pay is deductible from your gross income before income tax is calculated.
The safe harbor rule
You generally avoid an underpayment penalty if you pay, over the year, the lesser of:
| Test | Threshold |
|---|---|
| Current year | 90% of this year's total tax liability |
| Prior year (AGI ≤ $150,000) | 100% of last year's total tax liability |
| Prior year (AGI > $150,000) | 110% of last year's total tax liability |
Due dates
Despite the name, the four payment periods aren't equal calendar quarters: they're generally due April 15, June 15, September 15, and January 15 of the following year (shifted slightly for weekends and holidays).
Frequently asked questions
Why do I owe 15.3% self-employment tax when employees only pay 7.65%?
As an employee, your employer pays half of your Social Security and Medicare tax (7.65%) and you pay the other half (7.65%) — 15.3% combined. As a self-employed person, you're both the employee and the employer, so you pay the full 15.3% yourself (though half is deductible from your income tax).
What income is subject to self-employment tax?
92.35% of your net self-employment profit (Schedule C) is subject to SE tax — the 7.65% reduction approximates the employer-side deduction a regular employee's wages would get before FICA is calculated.
Do I need to pay the full estimated amount, or just the safe harbor minimum?
You can pay either — paying only the safe harbor minimum (90% of this year's liability, or 100%/110% of last year's) avoids the underpayment penalty, but you'll owe the remaining balance when you file. Many self-employed people pay closer to their full projected liability to avoid a large bill in April.
What if my income varies a lot throughout the year?
You can use the 'annualized income installment method' to calculate a different required payment each quarter based on income earned so far that year, rather than one-fourth of a flat annual estimate — useful for seasonal or highly variable self-employment income.