Estimated Taxes for 2027: Plan Your Quarterly Payments
When nobody withholds tax from your pay, the tax still has to be paid during the year, not just at filing time. Estimated taxes are how freelancers, side hustlers and many small business owners in the US do that. This guide walks through the 2027 payment dates, two practical ways to work out how much to pay, and a quarterly planner that keeps the money ready before each date arrives.
Key takeaways
- US estimated taxes are paid in four installments: 15 April, 15 June, 15 September and 15 January of the following year.
- The gaps between dates are uneven, so the June payment comes only two months after April, and January comes four months after September.
- You can base payments on last year's tax or on a projection of this year's income. Each method has trade-offs.
- Setting aside a share of every payment you receive, in a separate account, is the simplest way to stay ready.
- UK readers have a cousin of this system: payments on account due 31 January and 31 July.
If you work for an employer, tax comes out of each paycheck and you barely think about it. The moment you start freelancing, selling products or running a pass-through business, that safety net disappears. The US tax system still expects you to pay as you go, which is where estimated taxes come in.
The good news is that estimated taxes are mostly a planning problem, not a math problem. Once you know the dates, pick a method and set up a habit for setting money aside, the payments become routine. Early January is the perfect time to do it, because the final installment for 2026 is due on 15 January 2027 and the first one for 2027 is only three months later.
A quick note: this is general information, not tax advice. Your situation, including your state, your business structure and other income, changes what you owe. A qualified tax professional can help you set the right amounts.
Who usually needs to pay estimated taxes
In general, you may need to make estimated payments if you expect to owe tax that is not covered by withholding. Common examples include:
- Freelancers and independent contractors who receive payments with no tax withheld.
- Sole proprietors and single-member LLC owners whose business profit flows to their personal return.
- Partners and S-corp shareholders who receive a share of business income on their personal return.
- Side hustlers who earn extra income on top of a salaried job.
- People with other untaxed income, such as rental income or investment gains.
C-corps generally make their own estimated payments as a company, under separate rules. The IRS publishes the threshold that decides whether you must pay at all. It can change, so check the current IRS guidance or ask your accountant rather than relying on memory.
Pro tip
If you have a day job and a side business, you may be able to raise the tax withheld from your paycheck to cover the side income instead of making separate payments. Ask your employer's payroll team and your tax adviser whether that fits your situation.
The 2027 estimated tax dates
For most individuals using the calendar year, the dates follow the same pattern every year. Here is how they land for the 2027 tax year.
- 15 April 2027: first installment for 2027. The same day your 2026 individual return is due.
- 15 June 2027: second installment, just two months later.
- 15 September 2027: third installment.
- 15 January 2028: fourth installment. That date is a Saturday, so it moves to the next business day. Check the IRS for the confirmed date.
Do not forget the one already in front of you: the fourth installment for 2026 is due on 15 January 2027.
Common mistake
Assuming "quarterly" means every three months. The June payment comes only two months after April, which catches many freelancers off guard. If you save the same amount each month, you may be short in June and have extra by January. Plan your savings around the real dates.
Two ways to work out how much to pay
There is no single right method. Most people choose one of these two approaches, often with help from their accountant.
Method 1: base it on last year
Take your total tax for the previous year, then split it across the four installments. This is simple and predictable, and the IRS has safe harbor rules that can protect you from underpayment penalties when your payments meet a level based on last year's tax. The exact percentage depends on your income, so check the current IRS rules.
This method works well when your income is fairly steady or growing. The downside: if income jumps, you may owe a large balance when you file. If income falls, you may overpay during the year and wait for a refund.
Method 2: project this year
Estimate your 2027 profit, work out the likely tax and pay a share at each installment. This fits better when your income is changing a lot, for example in your first full year of freelancing or after losing a big client. It takes more effort, and you should update the projection each time you pay.
A blend that works for many freelancers
Many people start the year with Method 1 for the first payment, then switch to Method 2 once they have a few months of real numbers. If a quarter is much stronger or weaker than expected, adjust the next payment rather than waiting until April 2028.
Set up your estimated tax system in one afternoon
The method tells you how much. The system makes sure the money is actually there. Here is a simple setup.
- Open a separate tax savings account. Keep it at your bank but apart from your operating account so the money is not spent by accident.
- Choose a set-aside percentage. Work with your accountant to pick a share of every incoming payment that should cover federal, state and self-employment taxes.
- Move the money every time you are paid. Do it the same day, or set a weekly transfer based on that week's income.
- Put the four dates in your calendar with a reminder two weeks before each one.
- Review before each payment. Compare your year-to-date profit with your plan, and adjust the amount if needed.
- Pay and save proof. Use the IRS's official online payment options and keep the confirmation in your tax folder.
If you use the Profit First cash management method from Mike Michalowicz's book of the same name, your tax account is already built into the system. Keep feeding it on your regular allocation days and check that it covers each installment.
Quarterly estimated tax planner template
Copy this into a spreadsheet. The figures are made-up examples to show how the columns work, not suggestions for what you should pay.
| Installment | Due date | Income period profit (example) | Planned payment (example) | Tax account balance before paying (example) | Paid on | Confirmation saved? |
|---|---|---|---|---|---|---|
| 1 of 2027 | 15 April 2027 | $14,000 | $3,200 | $3,900 | 9 April 2027 | Yes |
| 2 of 2027 | 15 June 2027 | $9,500 | $2,200 | $2,700 | 11 June 2027 | Yes |
| 3 of 2027 | 15 September 2027 | $12,000 | $2,800 | $2,600 | Pending | No |
In the third row, the account balance is lower than the planned payment. That is your early warning to top up the account or review the estimate before September, not after.
Example
Imagine Ana, a freelance copywriter whose income was steady last year. In January she meets her accountant, who suggests starting with payments based on last year's tax and a set-aside percentage for every client payment. In May, Ana lands a large retainer. At her June review she sees her profit is well ahead of plan, so she raises her June and September payments instead of waiting for a surprise at filing time. Her tax account always has enough in it, because the money moves on the day each invoice is paid. (Figures and details are illustrative.)
Do not forget state taxes
Many US states with an income tax also expect estimated payments, often on similar dates, but not always. Some states have their own thresholds, forms and payment portals. Check your state tax agency website and add its dates to the same calendar. If you moved states during the year or work in more than one, ask a tax professional how to split your payments.
A note for UK readers: payments on account
The UK does not use quarterly estimated payments for Self Assessment, but it has a similar idea. If HMRC asks you to make payments on account, you pay toward your next tax bill in two installments, due 31 January and 31 July, and settle any balance the following January.
That means 31 January 2027 can include both the balance for the 2025/26 tax year and your first payment on account for 2026/27. The same set-aside habit works well: move a share of every payment into a separate account so both dates are covered. Check your HMRC online account for your exact amounts, and talk to an accountant if your income has changed a lot, because you may be able to ask HMRC to reduce your payments on account.
Common mistake
Using the tax account as an emergency fund. When a slow month arrives, it is tempting to borrow from the money set aside for tax. If you must, write it down and plan the repayment before the next installment, or you will face the shortfall on the due date.
Your estimated tax action plan
- Check whether you owe the 15 January 2027 payment for 2026
- Confirm with your accountant whether you need to pay estimated taxes for 2027
- Choose a method: last year's tax, a projection, or a blend
- Open a separate tax savings account
- Agree a set-aside percentage and move it with every payment you receive
- Add the four federal dates and any state dates to your calendar
- Fill in the quarterly planner before each installment
- Pay through official channels and save each confirmation
Frequently asked questions
What happens if I miss an estimated tax payment?
The IRS may charge an underpayment penalty, calculated on how much was underpaid and for how long. Paying as soon as you can usually reduces it. Check the IRS rules or ask your accountant about your options.
Can I pay more than one installment at once?
Yes, many people pay early or make extra payments when they have a strong month. What matters is that enough has been paid by each due date.
My income is very uneven. Do I have to pay equal amounts?
Not necessarily. The IRS has a method for uneven income that lets payments follow when the income was actually earned. It involves more calculation, so it is worth discussing with a tax professional.
Should my tax savings sit in an interest-earning account?
An easy-access, insured savings account is a sensible home, because you need the money on specific dates. Avoid anything that could lose value or lock the money up before a payment is due.
Related reading
The bottom line
Estimated taxes reward a simple system. Know the four dates, pick a method for sizing each payment, move a share of every payment you receive into a separate account, and review the numbers before each installment. Remember that June comes quickly after April and that state payments may apply too.
Set it up this month, while 2027 is still fresh. By the time 15 April arrives, the payment will be waiting in its own account and you can send it without a second thought.
