Estimated Tax Calculator

There are two ways to stay penalty-free and you may use whichever is cheaper. This works out both, picks the better one, and checks whether the higher 110% rule applies to you - the part that quietly catches people out every year.

Your tax

Your best estimate for the whole year.

From last year's return. You already know this one.

Decides whether the higher 110% rule applies to you.

This halves the income line, so it catches more people.

What is already covered

From a job, a pension, anywhere.

Payments you have already made this year.

Fewer deadlines means bigger payments.

Each remaining payment

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Total you must cover
$0
Still to find
$0
Route: 90% of this year
$0
Route: last year's tax
$0
Which is cheaper
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Where the money goes

Each block is sized by its share, so you can see whether total you must cover or still to find is the bigger part without reading a single number.

Try a different number

Move it and watch

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at {v} for your income last year

What this assumes

And what you can change

You take the standard deductionMost people do
You are paid the same all yearNo bonus, no part year
No city or county tax on topA few places add their own
Not what you expected?

Why your own figure may differ

Your payslip shows less. Union dues, parking and repayments come off after tax and are not counted here.
Your employer withheld the wrong amount. Common after a raise or a new job. It settles when you file.
You have income this does not know about. Freelance work, interest and dividends all change the picture.

When the payments are due

Four payments a year, but they are not even quarters. The second one covers only two months, which surprises people every year.

Estimated tax payment deadlines
Income earnedPayment due
1 January to 31 MarchApril 15
1 April to 31 MayJune 15
1 June to 31 AugustSeptember 15
1 September to 31 DecemberJanuary 15 of the following year

If a due date lands on a weekend or public holiday, the next working day is fine.

Quarterly estimated tax: real examples

Three situations that cost freelancers real money. Click any card to load it.

  • The 110% trap

    Earned over $150,000 last year

    Expecting to owe $20,000 this year, owed $15,000 last year.

    The last-year route is 110%, not 100%. so $16,500, not $15,000. Paying the $15,000 you expected still leaves you penalised.

    Load this scenario in the calculator →
  • Income dropped

    A quieter year than last year

    Owed $30,000 last year, expecting $10,000 this year.

    Use this year instead: $9,000, not $30,000. The rule lets you take whichever is smaller, and almost nobody realises.

    Load this scenario in the calculator →
  • Already behind

    Two deadlines gone, two left

    Needs $16,000 covered, $4,000 withheld, $3,000 paid so far.

    The remaining two payments jump to $4,500 each instead of $3,000. Missing deadlines does not reduce the bill.

    Load this scenario in the calculator →

Common questions about quarterly estimated tax

Do I even have to make these payments?

Only if you expect to owe $1,000 or more once your withholding and credits are taken off. If you are employed and enough tax comes out of your pay, you usually owe nothing extra. It is people with self-employed work, freelance income, rental income or big investment gains who get caught, because nothing is being taken out along the way.

What is a safe harbour?

A get-out. If you pay at least a set amount during the year, you cannot be penalised even if you end up owing more. There are two routes and you may use whichever is smaller: 90% of what you will owe this year, or 100% of what you owed last year. The second one is easier because you already know the number.

I earn well. Does something change?

Yes, and this is what catches people out. If your income last year was over $150,000, or over $75,000 if you are married filing separately - the last-year route rises from 100% to 110%. Pay the 100% you were expecting and you can still be penalised. This calculator checks it for you.

When are the payments due?

Four times a year: April 15, June 15, September 15, January 15 of the following year. Each one covers the period before it, not a neat quarter - the second one covers only two months. If a due date lands on a weekend or public holiday, the next working day is fine.

I have already missed a deadline. What now?

Pay as soon as you can. The penalty is worked out per period, so the sooner you pay the less it costs. Put in how many deadlines you have left and this tool splits what remains across them - you will see each payment jump, which is exactly the point.

Is there a way to skip all of this?

Yes, if you also have a job. Ask your employer to take more tax out of your pay. Money withheld from wages is treated as if it were spread evenly across the whole year, however late in the year it actually happens. That can rescue a year where you have underpaid.

The guide behind this calculator