Your fourth-quarter estimated tax payment is due January 15, 2027: what to pay and how
Updated November 1, 2026. Written for California owners, workers and freelancers; not legal or tax advice.
The last estimated tax payment for tax year 2026 is due Friday, January 15, 2027, to both the IRS (Form 1040-ES) and California's Franchise Tax Board (Form 540-ES).
Step 1: Look at where you stand
Add up what you've already paid for 2026: estimated payments made in April, June and September, plus any withholding from a W-2 job. Then estimate your total 2026 tax. Our calculator does both federal and California.
Step 2: Find your target (the safe harbor)
To avoid an underpayment penalty, your total withholding plus on-time estimates generally need to reach the smaller of:
- 90% of your 2026 tax, or
- 100% of your 2025 tax (110% if your 2025 AGI was over $150,000, or $75,000 married filing separately)
More detail in the 100% vs. 110% rule.
Step 3: Figure the January payment
Federal: the safe-harbor target is spread as 25% per quarter. If you've paid on time all year, the January payment is the last quarter. If you underpaid earlier, paying extra now stops further penalty from accruing, but doesn't erase penalty already charged for earlier quarters.
California: the January payment is 30% of the required annual amount (the schedule is 30/40/0/30). See why California skips September.
Example
A single graphic designer expects $80,000 of 2026 net profit, no other income. Her 2025 total tax was $9,000 and her 2025 AGI was $70,000.
- Estimated 2026 tax: about $16,650 (SE tax about $11,300 plus income tax about $5,350 after the standard and QBI deductions)
- 90% of that: about $14,985. 100% of 2025: $9,000. Target: $9,000
- Federal per quarter: $2,250, including January 15
She'll owe the rest (about $7,650) by April 15, 2027 with no underpayment penalty, so budget for it.
The February 1 shortcut (federal only)
If you file your 2026 federal return and pay the full balance by February 1, 2027, you don't need to make the January federal payment. California's version is one day earlier: file your 2026 California return by January 31, 2027 and pay the full balance, and you can skip the fourth California installment (2026 Form 540-ES instructions).
How to pay
- IRS: IRS Direct Pay (free, from a bank account), EFTPS, or your IRS online account. Choose “Estimated tax” and tax year 2026.
- California: FTB Web Pay (free). Once you make a payment over $20,000, or your total tax is over $80,000, California requires you to pay electronically.
Save the confirmation numbers. You'll need the total paid when you file.
What if I can't pay it all?
Pay what you can by January 15. The federal penalty works like interest (the underpayment rate times the amount and number of days late), so a partial payment still reduces it. See IRS Form 2210.
The Freelancer Quarterly Tax Workbook tracks every payment to both agencies and recalculates what's left.