Quick answer: If you are self employed, own a business or have income with no withholding, you generally must pay tax four times a year. For 2026 the federal dates are April 15, June 15, September 15 and January 15, 2027, and Virginia uses the same dates except its first payment is due May 1. Federally, you avoid penalties by paying at least 90% of this year’s tax or 100% of last year’s (110% if last year’s AGI was over $150,000, or $75,000 if married filing separately). Virginia has its own safe harbor rules, covered below.
Nobody withholds tax from a business owner’s profit. Estimated payments are how you pay as you go, and getting them wrong can mean a penalty even if you pay in full in April.
What are quarterly estimated taxes?
The U.S. tax system is pay as you go. Employees pay through withholding on every paycheck. If you earn money with no withholding, you are expected to send payments yourself during the year.
Estimated payments cover two kinds of tax for most business owners:
- Income tax, federal and Virginia, on your business profit and other income.
- Self employment tax of 15.3% on about 92.35% of your profit. This is your Social Security and Medicare. The Social Security part stops at $184,500 of earnings for 2026.
Not sure what yours will be? Our free self employment tax calculator gives a quick estimate.
Who has to pay estimated taxes?
| Federal (Form 1040-ES) | Virginia (Form 760ES) | |
|---|---|---|
| You generally must pay if you expect to owe | $1,000 or more after withholding and refundable credits, unless you meet a safe harbor | More than $1,000 after withholding and credits (new for 2026; it was $150) |
| Corporations | $500 or more | Separate rules on Form 500ES |
| Usually exempt | You owed no tax last year, were a U.S. citizen or resident all year and last year was 12 months | Your income is below the Virginia filing threshold |
This usually includes sole proprietors, freelancers, partners, S corp owners with K-1 profit, landlords and investors with large gains.
New for 2026: The Virginia change matters for small side businesses. Under the old $150 rule, many people with modest freelance income were technically required to pay quarterly. For 2026 that bar is much higher.
Estimated tax due dates for 2026 and 2027
| Payment | Federal 2026 | Virginia 2026 | Federal 2027 | Virginia 2027 |
|---|---|---|---|---|
| 1st | April 15, 2026 | May 1, 2026 | April 15, 2027 | May 3, 2027 |
| 2nd | June 15, 2026 | June 15, 2026 | June 15, 2027 | June 15, 2027 |
| 3rd | September 15, 2026 | September 15, 2026 | September 15, 2027 | September 15, 2027 |
| 4th | January 15, 2027 | January 15, 2027 | January 18, 2028 | January 18, 2028 |
When a date falls on a weekend or legal holiday, it moves to the next business day. That is why May 1, 2027 becomes May 3 and January 15, 2028 becomes January 18.
- Apr 15, 2026Federal payment 1 covers income earned January 1 to March 31 (three months).
- May 1, 2026Virginia payment 1 covers the same first period. Virginia gives you an extra two weeks.
- Jun 15, 2026Federal and Virginia payment 2 covers April 1 to May 31 (only two months).
- Sep 15, 2026Federal and Virginia payment 3 covers June 1 to August 31 (three months).
- Jan 15, 2027Federal and Virginia payment 4 covers September 1 to December 31 (four months).
Keep every date in one place with our tax deadline calendar.
How to figure your estimated payments, step by step
- Pull your year to date profit from your books, not your bank balance.
- Project the full year. Adjust for busy and slow seasons, new contracts or a big purchase.
- Estimate your total tax. Add federal income tax, self employment tax and Virginia tax, then subtract any withholding.
- Compare it with the safe harbor. Pay whichever required amount is smaller (see the next section).
- Divide by the payments left and schedule them.
- Check again each quarter. If income jumps or drops, change the next payment.
A simple habit helps: move a set share of every deposit, often 25% to 30% of profit, into a separate tax savings account. Clean monthly bookkeeping makes step one take minutes instead of days.
Safe harbor rules: how to avoid penalties
A safe harbor is a minimum amount that protects you from a penalty even if you owe more when you file.
| Rule | Federal | Virginia |
|---|---|---|
| Based on this year | 90% of 2026 tax | 90% of 2026 tax |
| Based on last year | 100% of 2025 tax, or 110% if 2025 AGI was over $150,000 ($75,000 married filing separately) | 100% of 2025 tax, if your 2025 return covered 12 months and showed a tax |
| Small shortfall | No penalty if you owe less than $1,000 | No addition if total underpayments are $1,000 or less (2026 and later) |
| Farmers and fishermen | 66⅔% instead of 90% | 66⅔% instead of 90% |
The last year rule is the easiest to use because you already know the number.
What if your income is seasonal or uneven?
The rules assume you earn money evenly. If most of your income arrives late in the year, equal payments can mean overpaying early.
- The annualized income method lets each payment match what you actually earned in that period. You claim it on Form 2210 Schedule AI (federal) and Form 760C (Virginia).
- A late big contract can be handled by raising the remaining payments, rather than catching up on earlier ones.
- A slow year means you can lower later payments once you see profit dropping.
Have a paycheck too? Use withholding instead
If you or your spouse have a W-2 job, you can raise withholding on Form W-4 (and Virginia Form VA-4) to cover your business tax.
Why this works: Federal withholding is treated as paid evenly through the year, even if most of it comes out in December. That makes it a good way to fix a shortfall late in the year.
S corp owners can do the same with their own payroll. Read more in how to pay yourself as a business owner.
How to pay the IRS and Virginia Tax
Federal
- IRS Direct Pay or your IRS online account, free from your bank account
- EFTPS, useful for scheduling payments in advance
- Card (processor fees apply) or check with a Form 1040-ES voucher
Virginia
- The Form 760ES online payment form on the Virginia Tax website
- Your Virginia Tax individual online services account, which lets you schedule payments
- Check with a Form 760ES voucher
- If any single payment is more than $1,500, Virginia expects you to pay electronically
Tip: Write down each confirmation number. Missing payments on a return are a common cause of IRS and Virginia notices.
What happens if you miss or underpay?
The penalty works like interest. It is figured on each payment that was short, from its due date until you pay.
- Federal: based on the IRS underpayment rate, which the IRS sets each quarter. Figure it on Form 2210.
- Virginia: an addition to tax at the federal rate plus 2%, figured on Form 760C.
- Missed a payment? Pay it now. A late payment stops the clock on that quarter, while waiting until April lets it keep running.
The IRS can waive the penalty after a disaster or other unusual event, or if you retired at 62 or older, or became disabled, this year or last year and had a reasonable cause. Got a letter about it? See our IRS notice help.
Common estimated tax mistakes
- Forgetting Virginia. Paying the IRS and skipping Virginia is one of the most common errors we see.
- Using the wrong first date. Virginia’s first payment is May 1, not April 15.
- Paying from the business account without recording it. Estimated tax is a personal payment, so book it as an owner draw.
- Using 100% when 110% applies. Check last year’s AGI before relying on the prior year rule.
Estimated tax FAQs
When is the next estimated tax payment due?
The fourth payment for 2026 is due January 15, 2027, for both the IRS and Virginia. The first 2027 payments are due April 15, 2027 (federal) and May 3, 2027 (Virginia, because May 1 falls on a Saturday).
Do I have to pay estimated taxes my first year in business?
Not for federal tax if you owed no federal tax last year, were a U.S. citizen or resident all year and last year was a full 12 months. You still owe the tax in April, so setting money aside is wise. Virginia has its own tests, so check them separately.
What percentage of my income should I set aside for taxes?
Many self employed people set aside about 25% to 30% of profit to cover federal income tax, the 15.3% self employment tax and Virginia tax. Your real number depends on your income, deductions and filing status.
Can I make one estimated tax payment instead of four?
You can pay the full year with the first payment. Paying everything at the end does not work, because the penalty is figured for each quarter that was short.
Do I need to pay Virginia estimated tax if I owe less than $1,000?
For tax years starting in 2026, Virginia generally requires estimated payments only when you expect to owe more than $1,000 after withholding and credits. The old trigger was $150.
Can I skip the January estimated payment?
Yes, in many cases. You can skip the federal January payment if you file your 2026 return and pay all tax due by February 1, 2027. For Virginia, filing and paying in full by March 1, 2027 has the same effect.
What if I overpaid my estimated taxes?
You get the difference back as a refund when you file, or you can apply it to next year’s estimated tax. Overpaying does not earn interest, so try to keep payments close to what you will owe.
Do S corp owners have to pay estimated taxes?
Often, yes. Your salary has withholding, but your share of profit on the K-1 does not. Many owners avoid separate payments by raising the federal and Virginia withholding on their own paychecks.
Let us set the right amounts
Our Ashburn team calculates federal and Virginia estimated payments from your actual books, then adjusts them each quarter so you avoid penalties without overpaying. Learn about our tax planning, bookkeeping and individual tax services.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
