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.
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
- -
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.
Move it and watch
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at {v} for your income last year
And what you can change
Why your own figure may differ
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.
| Income earned | Payment due |
|---|---|
| 1 January to 31 March | April 15 |
| 1 April to 31 May | June 15 |
| 1 June to 31 August | September 15 |
| 1 September to 31 December | January 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.