How to Calculate Quarterly Estimated Taxes for 2027

Updated 2026-10-14 · Not tax advice

Figures used: This guide uses the announced 2027 Social Security wage base of $192,300. The worked example uses 2026 income-tax brackets and deductions while 2027 IRS figures are pending. Current Keelsheet workbooks also use 2026 figures.

Free: the one-page Q4 2026 estimated tax worksheet (printable, Excel or Google Sheets) and the quarterly estimated tax calculator.

If you freelance, drive for an app or run a sole proprietorship, your payments usually arrive without tax withheld. The IRS expects you to pay as you go, four times a year, with Form 1040-ES.

1. Check whether you need to pay

Start with the Form 1040-ES worksheet if you expect annual tax minus withholding and refundable credits to reach $1,000 or more. Check whether withholding already covers the safe-harbor amount in step 6. The worksheet also explains exceptions, including qualifying taxpayers who had no tax liability for the prior year.

2. Know the due dates

Payment	Income period	Due
Q4 2026	Sep 1 – Dec 31, 2026	Jan 15, 2027
Q1 2027	Jan 1 – Mar 31	Apr 15, 2027
Q2 2027	Apr 1 – May 31	Jun 15, 2027
Q3 2027	Jun 1 – Aug 31	Sep 15, 2027
Q4 2027	Sep 1 – Dec 31	Jan 18, 2028 (expected)

3. Estimate net profit

Projected gross receipts minus deductible business expenses: your expected Schedule C bottom line. Not sure which expenses count? See the line-by-line list of Schedule C expense categories.

4. Calculate self-employment tax

• Net earnings from self-employment = profit × 92.35%.
• 12.4% Social Security on net earnings up to $192,300 for 2027 (reduced by any W-2 Social Security wages). Source: SSA, Oct 14, 2026.
• 2.9% Medicare on all net earnings.

Deduct half of regular self-employment tax when figuring income tax. See IRS Topic 554.

Additional Medicare Tax is calculated separately at 0.9%. Its threshold is $200,000 for single and head-of-household filers, $250,000 for married couples filing jointly, and $125,000 for married filing separately. Medicare wages reduce the threshold available for net self-employment earnings, down to zero. Joint filers include both spouses’ applicable income.

For a single filer with $150,000 of Medicare wages and $100,000 of net self-employment earnings, the remaining threshold is $50,000. The additional tax on self-employment earnings is $50,000 × 0.9% = $450. Keep this tax outside the half-SE-tax deduction. See IRS Topic 560.

5. Estimate income tax

Add profit and other income, then subtract adjustments such as half of regular self-employment tax. The result is adjusted gross income (AGI).

Subtract the standard deduction or your itemized deductions. For 2026, the base standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.

Eligible business owners can also claim a qualified business income (QBI) deduction. It is subject to limits, including a limit based on taxable income. Apply the tax brackets to the resulting taxable income, then account for tax credits. The example below shows how this works for one set of assumptions.

6. Use safe harbor

Pay the smaller of 90% of 2027 tax or 100% of 2026 tax (110% if 2026 adjusted gross income was over $150,000; $75,000 if married filing separately). The prior-year return must cover 12 months. Subtract expected withholding from the annual target, then divide the remaining amount by four for equal installments. If income arrives unevenly, check the annualized income installment method in Form 2210. See the safe-harbor guide for an example.

Worked example: single, $80,000 net profit, 2026 figures

Assume a single filer under 65 with no other income, no tax credits, and no adjustments beyond half of regular self-employment tax. This example uses the standard deduction and assumes the business qualifies for the QBI deduction.

• Self-employment tax: $80,000 × 92.35% × 15.3% = $11,303.64.
• AGI: $80,000 − $5,651.82 = $74,348.18.
• Income before QBI deduction: $74,348.18 − $16,100 = $58,248.18.
• The taxable-income limit caps the QBI deduction at 20% × $58,248.18 = $11,649.64.
• Taxable income: $58,248.18 − $11,649.64 = $46,598.54.
• Income tax: 10% × $12,400 + 12% × $34,198.54 = $5,343.83.
• Combined federal tax: $11,303.64 + $5,343.83 = $16,647.47.

That is about 21% of profit, or $4,162 per quarter toward the full annual estimate with no withholding. The safe-harbor target can be lower. Figures are rounded to cents for this illustration; state tax is separate.

7. Pay

Use IRS Direct Pay or your IRS Online Account and save each confirmation. EFTPS no longer takes new individual enrollments. Step by step: how to pay estimated taxes online.

Used QuickBooks Self-Employed for this estimate? Intuit no longer sells it to new customers. Compare replacements in QuickBooks Self-Employed alternatives for 2027.

Just started freelancing? See quarterly taxes in your first year as a 1099. Delivering for DoorDash? See DoorDash quarterly taxes. Shopping for Instacart? See Instacart taxes. Doing it on the IRS form? Follow the Form 1040-ES Estimated Tax Worksheet line by line. Tracking this all year? Compare free and paid options in the best quarterly estimated tax spreadsheet for freelancers.

FAQ

When are 2027 estimated tax payments due?

April 15, June 15 and September 15, 2027, and the fourth payment in January 2028 (January 15, 2028 is a Saturday and January 17 is a federal holiday, so the deadline should be January 18, 2028; confirm on the 2027 Form 1040-ES). The last 2026 payment is due January 15, 2027.

Do I have to pay quarterly estimated taxes?

Check the Form 1040-ES worksheet if you expect to owe at least $1,000 after withholding and refundable credits. You may already meet a safe harbor through withholding; the guide explains that check.

What is the 2027 Social Security wage base?

$192,300, announced by the Social Security Administration on October 14, 2026 (up from $184,500 in 2026).

How do I avoid the underpayment penalty?

Pay on time at least the smaller of 90% of this year's tax or 100% of last year's tax (110% if last year's adjusted gross income was over $150,000, or $75,000 if married filing separately).