Quarterly Tax Estimator
Calculate your estimated quarterly tax payments including federal income tax, self-employment tax, and state taxes.
Inputs
Results
Q1 Estimated Payment
$13,033
Due: Apr 15
Federal Income Tax
$22,847
$5,712 / quarter
Self-Employment Tax
$17,662
$4,415 / quarter
State Tax
$11,625
$2,906 / quarter -- 9.3% rate
Total Annual Tax
$52,134
$13,033 / quarter
Effective Tax Rate
34.8%
Taxable Income
$125,000
Income Breakdown
How it works
If you earn income that is not subject to withholding -- such as self-employment income, freelance earnings, or business profits -- you are required to make quarterly estimated tax payments to the IRS. These payments cover your federal income tax, self-employment tax (Social Security and Medicare for self-employed individuals), and state income tax. The IRS expects payments four times a year, and missing them can result in underpayment penalties. Self-employment tax is 15.3% on 92.35% of your net self-employment income (12.4% for Social Security, 2.9% for Medicare).
The formula
Why it matters for your business
Underpaying estimated taxes leads to penalties and a painful surprise at tax time. The IRS safe harbor rule says you owe no penalty if you pay at least 100% of last year's tax liability (110% if AGI > $150k), or 90% of the current year's liability. Getting your quarterly estimates right means you avoid penalties and maintain predictable cash flow throughout the year.
Pro tip
Set aside 25-30% of every payment you receive into a dedicated tax savings account. This simple habit prevents the cash crunch that hits many business owners in April. For S-Corp owners, paying yourself a reasonable salary through payroll handles withholding automatically, and you only need to estimate on the remaining distributions.
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