LLC Quarterly Taxes
Due Dates, How to Calculate & How to Pay
LLC owners don’t have taxes withheld from paychecks — you’re responsible for paying estimated taxes four times a year. Miss a payment and you’ll owe IRS penalties. Here’s exactly when to pay, how much, and how to avoid underpayment penalties.
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2026 due dates included
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LLC owners who expect to owe $1,000 or more in federal taxes for the year must make quarterly estimated tax payments. The 2026 due dates are: April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15, 2027 (Q4). Each payment covers income tax AND self-employment tax. To avoid underpayment penalties, pay either 90% of your current year tax liability or 100% of last year’s tax liability (110% if your prior year AGI exceeded $150,000) — whichever is smaller.
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What Are Quarterly Estimated Taxes?
When you work as a W-2 employee, your employer withholds federal and state income taxes from each paycheck. As an LLC owner, no one withholds taxes for you — you’re responsible for paying your own taxes throughout the year through quarterly estimated tax payments.
These payments cover both your income tax and your self-employment tax (Social Security and Medicare). The IRS requires you to pay as you earn — not just at the end of the year — which is why quarterly payments are mandatory for most LLC owners.
If you don’t pay enough estimated taxes throughout the year, the IRS charges an underpayment penalty — currently 8% per year (2026) on the underpaid amount. This penalty applies even if you pay your full tax bill by April 15. The safe harbor rules (explained below) are the key to avoiding this penalty.
2026 Quarterly Tax Due Dates
The IRS uses an unusual quarterly schedule — the “quarters” are not equal in length. Here are the 2026 due dates:
| Payment | Income Period | Due Date | Form |
|---|---|---|---|
| Q1 2026 | January 1 – March 31 | April 15, 2026 | Form 1040-ES |
| Q2 2026 | April 1 – May 31 | June 16, 2026 | Form 1040-ES |
| Q3 2026 | June 1 – August 31 | September 15, 2026 | Form 1040-ES |
| Q4 2026 | September 1 – December 31 | January 15, 2027 | Form 1040-ES |
You can skip the January 15 Q4 payment if you file your complete tax return and pay all taxes owed by January 31. This is a useful option if you want to avoid the January payment and your return is ready early.
Who Must Pay Quarterly Estimated Taxes?
You must make quarterly estimated tax payments if both of the following apply:
- You expect to owe at least $1,000 in federal taxes for the year (after subtracting withholding and credits)
- Your withholding and credits will cover less than 90% of your current year tax OR less than 100% of your prior year tax (110% if prior year AGI exceeded $150,000)
For most LLC owners with significant business income, quarterly payments are required. The threshold is low — $1,000 in expected taxes is easy to exceed when you’re self-employed.
How to Calculate Your Quarterly Tax Payment
Method 1: Estimate Current Year Tax (Most Accurate)
- Estimate your total net profit for the year
- Subtract all deductions (home office, vehicle, retirement contributions, etc.)
- Calculate income tax on the remaining amount using current tax brackets
- Add self-employment tax (15.3% on net SE income up to $176,100)
- Subtract any expected credits (child tax credit, etc.)
- Divide by 4 for each quarterly payment
Method 2: Safe Harbor (Easiest, Penalty-Free)
Pay 25% of your prior year’s total tax liability each quarter. If your prior year AGI exceeded $150,000, pay 27.5% each quarter (110% of prior year tax ÷ 4). This is the simplest approach and guarantees no underpayment penalty.
Your 2025 total tax was $24,000. For 2026, pay $6,000 per quarter ($24,000 ÷ 4) using the safe harbor method. Even if your 2026 income is higher, you won’t owe underpayment penalties as long as you paid 100% of your 2025 tax.
The Safe Harbor Rule — How to Avoid Underpayment Penalties
The IRS safe harbor rule protects you from underpayment penalties if you pay at least one of the following amounts:
- 90% of current year tax: Pay 90% of what you’ll actually owe for 2026, spread across four quarterly payments.
- 100% of prior year tax: Pay 100% of your 2025 total tax liability (from line 24 of your 2025 Form 1040), spread across four quarterly payments.
- 110% of prior year tax: If your 2025 AGI exceeded $150,000, you must pay 110% of your 2025 tax liability to qualify for safe harbor.
Most LLC owners use the prior year safe harbor (100% or 110%) because it’s predictable — you know exactly what you paid last year, so you can calculate each quarterly payment precisely.
How to Pay Quarterly Estimated Taxes
Option 1: IRS Direct Pay (Free, Recommended)
Pay directly from your bank account at IRS Direct Pay. No account required — just enter your bank information each time. Free, immediate, and provides instant confirmation.
Option 2: EFTPS (Electronic Federal Tax Payment System)
The IRS’s dedicated payment system at EFTPS.gov. Requires registration but allows you to schedule payments in advance. Good for LLC owners who want to automate quarterly payments.
Option 3: IRS2Go App
Pay from your mobile device using the IRS2Go app. Uses IRS Direct Pay under the hood — same security, more convenient for mobile users.
Option 4: Mail a Check with Form 1040-ES
Download Form 1040-ES from IRS.gov, complete the payment voucher, and mail with a check payable to “United States Treasury.” Least convenient option — use electronic payment instead.
Underpayment Penalties
If you don’t pay enough estimated taxes, the IRS charges an underpayment penalty. For 2026, the penalty rate is 8% per year (the federal short-term rate + 3 percentage points) on the underpaid amount, calculated from the due date of each quarterly payment.
The penalty is calculated separately for each quarter — so even if you overpay in Q3 and Q4, you may still owe a penalty for Q1 and Q2 underpayments.
The IRS may waive the underpayment penalty if: (1) you had no tax liability in the prior year, (2) the underpayment was due to a casualty, disaster, or unusual circumstance, or (3) you retired or became disabled during the year. File Form 2210 to request a waiver.
Frequently Asked Questions
If you miss a quarterly payment or underpay, the IRS charges an underpayment penalty (currently 8%/year) on the amount owed from the due date until you pay. The penalty is calculated separately for each quarter. You can still pay the missed amount — the penalty just accrues until you do. Pay as soon as possible to minimize the penalty.
Most states with income taxes also require quarterly estimated tax payments, with similar rules and due dates. State due dates often match federal dates, but some states have different schedules. Check your state’s tax authority website for specific requirements. California, for example, has different due dates than the federal schedule.
You can make a large payment at any time, but the IRS still calculates underpayment penalties based on whether each quarterly payment was made on time and in sufficient amount. Paying a lump sum in December won’t eliminate penalties for Q1–Q3 underpayments. The quarterly schedule is what matters for penalty avoidance.
If your income is uneven (seasonal business, variable consulting income), you can use the “annualized income installment method” (Form 2210, Schedule AI) to calculate each quarterly payment based on your actual income earned through that quarter. This can reduce or eliminate underpayment penalties for quarters when your income was lower.
Tax Calculators
Plan your quarterly payments and annual tax strategy
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Under the Corporate Transparency Act, most LLCs must file a Beneficial Ownership Information (BOI) report with FinCEN. Penalties for willful non-compliance reach $591/day in civil penalties plus potential criminal charges.
Key deadlines: LLCs formed before Jan 1, 2024 → already past due. LLCs formed in 2024 → 90 days from formation. LLCs formed in 2025+ → 30 days from formation. File for free at FinCEN.gov →
Frequently Asked Questions
Yes, if you expect to owe $1,000 or more in federal taxes for the year. LLC owners don’t have employer withholding, so they must make estimated quarterly tax payments to avoid underpayment penalties. Payments cover both income tax and self-employment tax.
The 2026 estimated tax due dates are: Q1 (January 1 – March 31) → April 15, 2026; Q2 (April 1 – May 31) → June 16, 2026; Q3 (June 1 – August 31) → September 15, 2026; Q4 (September 1 – December 31) → January 15, 2027. If a due date falls on a weekend or holiday, it moves to the next business day.
Method 1 (Safe Harbor): Pay 100% of last year’s tax liability in equal quarterly installments (110% if your prior year AGI exceeded $150,000). This avoids underpayment penalties regardless of your actual income. Method 2 (Annualized Income): Estimate your actual income each quarter and pay 90% of what you’ll owe. Method 1 is simpler and recommended for most LLC owners.
The IRS charges an underpayment penalty — currently 8% annually (2024 rate) on the amount underpaid. The penalty is calculated separately for each quarter. You’ll also owe the full tax balance when you file your annual return. The penalty is not huge, but it’s avoidable. Some LLC owners deliberately underpay and treat the penalty as the ‘cost of a short-term loan.’
Options: (1) IRS Direct Pay at IRS.gov — free, instant, no account required, (2) EFTPS (Electronic Federal Tax Payment System) — free, requires registration, (3) IRS2Go mobile app, (4) Credit/debit card (processing fees apply: 1.85%–1.98%), (5) Check mailed to IRS with Form 1040-ES voucher. EFTPS and IRS Direct Pay are the most popular methods.
Most states with income tax require quarterly estimated payments if you expect to owe $500–$1,000 or more in state taxes. Each state has its own payment portal and due dates (which often match federal dates). Check your state’s department of revenue website for specific requirements and payment methods.
You can avoid underpayment penalties by meeting the safe harbor rules: pay at least 100% of last year’s tax liability (110% if prior year AGI > $150,000) or 90% of this year’s actual tax liability. If you have a W-2 job in addition to your LLC, you can increase withholding on your W-2 to cover your LLC tax liability, eliminating the need for separate quarterly payments.
The safe harbor rule protects you from underpayment penalties if you pay: (1) 100% of your prior year’s total tax liability (from last year’s Form 1040, line 24), or (2) 90% of your current year’s tax liability. If your prior year AGI exceeded $150,000, you must pay 110% of last year’s liability. Meeting either threshold means no penalty, even if you owe a large balance at filing.
A common rule of thumb: set aside 25–30% of every payment you receive for taxes. This covers federal income tax (10–37% depending on your bracket), self-employment tax (15.3% on first $176,100), and state income tax (0–13.3% depending on state). If you’re in a high-income bracket or high-tax state, 35% is safer. Open a separate savings account for tax reserves.