Estimate your federal and state income tax liability for the current quarter.
Your Estimated Quarterly Tax Due:
$0.00
Understanding and Calculating Quarterly Taxes
Quarterly taxes are estimated tax payments that individuals who are self-employed or have income not subject to withholding (like rental income, dividends, or capital gains) must pay to the government throughout the year. These payments help ensure you pay your income tax liability as you earn it, rather than facing a large bill and potential penalties at the end of the tax year. The U.S. tax system generally operates on a "pay-as-you-go" basis.
Who Needs to Pay Quarterly Taxes?
You typically need to make estimated tax payments if you expect to owe at least $1,000 in tax for the year and your withholding and any refundable tax credits will be less than the smaller of:
90% of the tax to be shown on your current year's tax return, or
100% of the tax shown on your prior year's tax return (if your prior year return covered all 12 months).
This often applies to freelancers, independent contractors, small business owners, and individuals with significant investment income.
How to Calculate Your Quarterly Taxes
Calculating quarterly taxes involves estimating your total annual income, subtracting estimated deductions and credits, and then applying your expected tax rates. The result is then divided by four to determine the amount for each quarter.
The formula used by this calculator is a simplified estimation:
Calculate Estimated Taxable Income: Estimated Annual Income - Estimated Annual Deductions/Credits = Estimated Taxable Income
Calculate Total Annual Tax Liability: (Estimated Taxable Income * Federal Tax Rate) + (Estimated Taxable Income * State Tax Rate) = Total Annual Tax Note: This assumes your state has a flat income tax rate for simplicity. Progressive tax brackets would require a more complex calculation.
Determine Amount Owed or Overpaid: Quarterly Tax Liability - Total Quarterly Payments Already Made = Amount Due / Overpaid
For example, if your estimated annual income is $75,000 and your estimated deductions are $10,000, your taxable income is $65,000. If your federal tax rate is 22% and your state tax rate is 5%, your total annual tax is ($65,000 * 0.22) + ($65,000 * 0.05) = $14,300 + $3,250 = $17,550. Your quarterly tax liability would be $17,550 / 4 = $4,387.50. If you've already paid $1,500 for the quarter, you would owe an additional $2,887.50 ($4,387.50 – $1,500).
Important Considerations:
Accuracy is Key: Overestimating your income or underestimating deductions can lead to overpayment, while the opposite can result in penalties and interest.
Tax Laws Change: Tax rates, deductions, and credits can change annually. Always refer to the latest IRS and state tax authority guidelines.
Penalties: Failing to pay enough tax by the due dates can result in penalties. Generally, you can avoid penalties if you owe less than $1,000 when you file your tax return, or if you paid at least 90% of the tax for the current year or 100% of the tax for the prior year.
Professional Advice: This calculator provides an estimate. For precise calculations and personalized advice, consult a qualified tax professional.
function calculateQuarterlyTaxes() {
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var deductions = parseFloat(document.getElementById("deductions").value);
var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value) / 100;
var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value) / 100;
var paymentsMade = parseFloat(document.getElementById("paymentsMade").value);
var resultDiv = document.getElementById("result");
var taxDueAmountDisplay = document.getElementById("taxDueAmount");
var paymentStatusDisplay = document.getElementById("paymentStatus");
if (isNaN(annualIncome) || isNaN(deductions) || isNaN(federalTaxRate) || isNaN(stateTaxRate) || isNaN(paymentsMade)) {
alert("Please enter valid numbers for all fields.");
resultDiv.style.display = "none";
return;
}
if (annualIncome < 0 || deductions < 0 || federalTaxRate < 0 || stateTaxRate < 0 || paymentsMade 1 || stateTaxRate > 1) {
alert("Tax rates should be entered as percentages (e.g., 22 for 22%), not decimals greater than 1.");
resultDiv.style.display = "none";
return;
}
var taxableIncome = annualIncome – deductions;
if (taxableIncome 0) {
paymentStatusDisplay.textContent = "You owe an additional amount for this quarter.";
} else if (amountOwed < 0) {
paymentStatusDisplay.textContent = "You have overpaid by $" + formattedAmountOwed + ".";
} else {
paymentStatusDisplay.textContent = "Your payments exactly cover your estimated quarterly tax.";
}
resultDiv.style.display = "block";
}