How to Pay Quarterly Taxes as a Freelancer: Complete Guide
One of the biggest financial surprises for new freelancers is the quarterly estimated tax requirement. When you work for an employer they withhold taxes automatically. When you freelance you are responsible for paying them yourself throughout the year.
Who Needs to Pay Quarterly
If you expect to owe $1,000 or more in federal taxes for the year you must make quarterly estimated payments or face penalties.
When Payments Are Due
- April 15 — for income earned January through March
- June 15 — for income earned April through May
- September 15 — for income earned June through August
- January 15 — for income earned September through December
How Much to Pay
A safe and simple approach: set aside 25 to 30% of every payment you receive in a separate savings account. Pay the accumulated amount each quarter. This covers federal income tax plus self-employment tax (15.3% on net earnings).
How to Pay
Pay online at irs.gov/payments using the Direct Pay system. Free, immediate, and you receive instant confirmation.
Use FreshBooks to track income and automatically estimate your quarterly tax obligations throughout the year.
