Tax deduction guide

The January 15 estimated tax payment: who pays and how

Tax year 2026 · Updated October 16, 2026

When it counts

  • Income with no tax withheld. Estimated tax is how you pay tax on income that is not subject to withholding, such as self-employment earnings, interest, dividends and rents. For a freelancer or 1099 contractor, the estimate includes both income tax and self-employment tax.
  • The $1,000 rule. You generally must pay if you expect to owe at least $1,000 for 2026 after subtracting your withholding and credits.
  • The withholding test. You also generally must pay if you expect your withholding and credits to be less than the smaller of 90% of your 2026 tax or 100% of your 2025 tax. Your 2025 return must cover all 12 months. If your 2025 adjusted gross income was more than $150,000 ($75,000 if your 2026 filing status is married filing separately), use 110% instead of 100%.
  • The four payments. Income from January 1 through March 31 is due April 15, 2026. April 1 through May 31 is due June 15, 2026. June 1 through August 31 is due September 15, 2026. September 1 through December 31 is due January 15, 2027. You can pay it all by April 15, 2026, or in four equal amounts.
  • On time. Pay electronically on or before the due date. A mailed payment counts if it is postmarked by then, but the IRS says the postmark date is the date the payment is processed at a postal facility, which may not be the day you mail it. If a due date falls on a weekend or legal holiday, the next business day is the deadline. January 15, 2027 is a Friday.
  • IRS Direct Pay. A free transfer directly from your bank account, at IRS.gov/Payments.
  • Your IRS online account. You can make estimated tax payments there and see your payment history.
  • Debit card, credit card or digital wallet. Through an IRS payment processor, which charges a fee that varies by provider and card type.
  • EFTPS. It is free, but you must be enrolled. The 2026 Form 1040-ES lists it, but the IRS's EFTPS page now says individual taxpayers can no longer create new EFTPS accounts, while current users can keep using it for now.
  • By mail. A check or money order with the January 15 voucher from the 2026 Form 1040-ES, payable to United States Treasury. Write "2026 Form 1040-ES" and your Social Security number on it. Do not mail cash.

When it doesn't

  • You file early and pay in full. If you file your 2026 return by February 1, 2027 and pay the entire balance due with it, you do not have to make the January 15 payment. Publication 505 words this as January 31, 2027, which is a Sunday. The 2026 Form 1040-ES gives February 1.
  • You expect to owe less than $1,000 after withholding and credits.
  • Your withholding and credits are enough. If you also have a job, you can ask your employer to withhold more with a new Form W-4 instead of paying estimated tax.
  • You owed no tax for 2025. That applies if you were a U.S. citizen or resident alien for all of 2025 and your total tax was zero or you did not have to file a return.
  • Most of your income is from farming or fishing. If at least two-thirds of your gross income for 2025 or 2026 comes from farming or fishing, you can pay all your estimated tax by January 15, 2027, or file your return by March 1, 2027 and pay the total tax due.

A worked example

A freelancer with no tax withheld figures that the total 2026 tax, income tax plus self-employment tax, will be $12,000. Their 2025 tax was $9,000, and their 2025 adjusted gross income was under $150,000.

  • 90% of the 2026 tax: $10,800.00
  • 100% of the 2025 tax: $9,000.00
  • Required annual payment, the smaller of the two: $9,000.00
  • Each of four equal payments: $2,250.00

They pay $2,250.00 on April 15, June 15 and September 15, 2026, and on January 15, 2027. They still owe the other $3,000.00 of their 2026 tax when they file, because paying the required amount does not mean the whole tax is paid.

What records to keep

  • The date, amount and tax year of each payment, with the confirmation number or the check or money order number. A payment on January 15, 2027 is for tax year 2026.
  • The 2026 Estimated Tax Worksheet you used, and your 2025 return, which sets the 100% or 110% test.
  • Any card processor fee, kept apart from the tax. The Record of Estimated Tax Payments in Form 1040-ES says not to include a convenience fee in the amount paid.

Common questions

Can I skip the payment if I file my return early?

Yes, if you file your 2026 return by February 1, 2027 and pay the entire balance due with it. Publication 505 gives an example of someone who files and pays on January 26, 2027. The fourth payment is treated as paid on time, but a penalty can still apply for the earlier payments they did not make, figured up to the day they paid.

What if I missed an earlier payment or paid too little?

Pay what you can by January 15. The penalty is figured on each underpayment for the number of days it stays unpaid, so paying sooner reduces it. A late or short payment can still lead to a penalty. The IRS can figure the penalty and send you a bill, or you can use Form 2210 to figure it yourself.

What if my income came in unevenly this year?

If you earn most of your income late in the year, you may be able to lower or remove the required payment for an earlier period with the annualized income installment method. Publication 505 explains it, and you report it on Form 2210 with Schedule AI.

Sources

General information taken from the IRS pages above.