🧮 FREE · 2026 IRS RULES · NO ACCOUNT

Safe Harbor Calculator (2026)

Pay at least this much and the penalty cannot apply, however your year turns out.

Are you 65 or older?
Service business?
ℹ️
This assumes you earned nothing in Q1, Q2. The estimate spreads your figures across every quarter of the year so far, so if you have been earning all along your real bill is higher than this. Sign in to enter each quarter, or pick the quarter that matches what you typed.

Once saved, manage expenses on the Expenses page — this field will auto-update.

Health insurance & retirementBoth come off before tax is calculated — most freelancers miss them

Premiums you pay yourself — not any covered by a spouse’s employer plan.

Reduces income tax, but not self-employment tax.

Found on line 24 of your 2025 Form 1040

⚡ Instant calculations · No account required · IRS 2026 compliant

The safe harbour is the most useful rule in estimated tax and the least known. Meet it and no underpayment penalty applies, even if you end up owing far more than you paid during the year.

There are two ways to qualify. Pay 90% of what you actually owe for 2026, or pay 100% of what you owed last year — whichever is smaller. The second is the useful one, because last year's figure is already known and this year's is a guess.

If your prior-year adjusted gross income was above $150,000 — $75,000 filing separately — the second option rises to 110% rather than 100%. That threshold is where most people get this wrong.

Wage withholding counts toward it, and counts as paid evenly across the year regardless of when it was actually withheld. Someone with a salaried job may already satisfy the safe harbour without making any estimated payment at all.

Common questions

Does the safe harbour mean I owe nothing more?

No — and this is the part that catches people. It protects you from the penalty, not from the bill. Any remaining tax is still due when you file.

Why 110% instead of 100%?

Because your prior-year AGI was above $150,000 ($75,000 if married filing separately). It is a fixed rule in §6654 rather than anything to do with your current income.

What if last year was my first year freelancing?

If you had no tax liability for a full prior year, the prior-year option may not be available. The 90%-of-current-year route still is.

Does withholding really count evenly?

Yes. Tax withheld from wages is treated as paid in equal parts across the four periods, which can retroactively cover an early quarter you underpaid.

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