Form 1040-ES: Estimated Tax for Individuals (2026)
Pre-pay tax on income nobody withholds from — and avoid an underpayment penalty.
Form 1040-ES is the voucher and worksheet set for paying estimated tax in four installments. You generally avoid an underpayment penalty by pre-paying the lesser of 90% of this year's tax or 100% of last year's tax — 110% if your prior-year AGI was over $150,000 ($75,000 if married filing separately). The prior-year option is only available if that return covered a full 12 months.
Who files Form 1040-ES
- Self-employed people and 1099 contractors with no withholding.
- Investors with significant capital gains, interest or dividends.
- Retirees taking distributions without enough tax withheld.
- Anyone who expects to owe $1,000 or more after withholding and credits.
How the safe harbor actually works
There are two tests and you only need to satisfy the smaller one. The current-year test is 90% of what you will owe this year — which you can only estimate. The prior-year test is a known number from last year's return, which is why most people use it: 100% of last year's total tax, or 110% if your prior-year AGI exceeded $150,000 ($75,000 for married filing separately).
The 110% test keys off your PRIOR-year AGI, not what you expect to earn this year. A big current year does not push you to 110% if last year's AGI was modest. Withholding from any W-2 job counts toward these payments and is treated as paid evenly across the year, which is why increasing withholding late in the year can fix an underpayment that quarterly vouchers cannot.
When the prior-year option is not available
If your prior return covered less than 12 months, or you did not file at all, the prior-year safe harbor does not apply and only the 90%-of-current-year test is available — usually the larger number. Farmers and fishers have their own rules: generally 66 2/3% rather than 90%, with a single January installment.
If your income arrives unevenly — a bonus, a property sale, seasonal business income — the annualized income installment method on Form 2210 Schedule AI can reduce or reschedule what you owe each quarter.
Frequently asked questions
What are the 2026 estimated tax due dates?
April 15, June 15 and September 15 of 2026, then January 15 of 2027. If a date falls on a weekend or holiday it shifts to the next business day.
What if I underpay one quarter?
The penalty is computed per quarter, so a shortfall in one period is not cured by overpaying later. Increasing W-2 withholding is treated as paid evenly across the year and can fix earlier quarters.
Do I owe a penalty if I pay in full by April?
Possibly yes. The underpayment penalty applies to missing the quarterly deadlines, not the filing deadline — paying everything at filing can still trigger it.
Is there a minimum below which I can skip estimates?
If your balance due after withholding and credits is under $1,000, the penalty generally does not apply. There is also an exception if you had no tax liability in a prior full 12-month year.
Sources & verification
Last reviewed July 12, 2026.