Quarterly Estimated Tax Calculator

What the Quarterly Estimated Tax Calculator does

If tax is not withheld from your income, the IRS expects estimated payments four times a year. This calculator estimates the year’s tax from your expected income and rates, subtracts withholding, and compares the quarterly payment with the prior-year safe harbor, which protects you from underpayment penalties.

It also works as a quarterly tax calculator or a estimated tax payment calculator.

Formula

• SE tax = net income × 92.35% × 15.3% (simplified, below the wage base)
• Income tax = (net income − half SE tax + other income) × effective rate
• Quarterly payment = (total tax − withholding) ÷ 4
• Safe harbor = 100% of last year’s tax (110% if AGI was over $150,000) ÷ 4

Worked example

Using the starting values in the calculator above:

How to read the result

Paying the safe harbor amount avoids underpayment penalties even if this year’s tax turns out higher, which is useful when income is rising.

If income is uneven through the year, the annualised income installment method may let you pay less in early quarters.

Estimates only, not tax advice. Rates and thresholds change; confirm current figures with your tax authority or adviser.

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