No employer withholds taxes for you. Every dollar you earn is pre-tax. Here's how to set aside the right amount, pay quarterly estimates without scrambling, and use the right tools to automate it.
Deadlines, how to calculate what you owe, how to pay, and how to stop getting caught short. The complete guide for freelancers and consultants.
The right percentage depends on your income, entity type, and state. Here's how to calculate it and automate it so you never face a surprise bill.
Estimate your federal self-employment tax, income tax, and quarterly payment amounts based on your expected annual revenue and filing status.
You pay both the employee and employer share of Social Security and Medicare. On a W-2 job, your employer covers half. As a solo operator, it's all yours — on top of income tax.
Quarterly estimated taxes are due in April, June, September, and January. Miss them and the IRS charges underpayment penalties — even if you pay in full at tax time.
Every payment from every client hits your account pre-tax. Unless you move money to a dedicated tax account immediately, it mixes with operating cash and disappears before April.
Open a separate business checking account for taxes only. Set an automatic transfer rule: every time income lands, move 25–30% to the tax account immediately. Use Relay's percentage-based transfer rules to do this without manual action.
Open Relay for Profit First tax allocation →You need to know your net profit to calculate what you owe. FreshBooks or QuickBooks — synced to your bank — gives you a running P&L that makes quarterly estimates accurate instead of guesses.
Compare accounting software for solo operators →| Quarter | Income Period | Due Date | How to Pay |
|---|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 15, 2026 | IRS Direct Pay or EFTPS |
| Q2 | Apr 1 – May 31 | June 16, 2026 | IRS Direct Pay or EFTPS |
| Q3 | Jun 1 – Aug 31 | September 15, 2026 | IRS Direct Pay or EFTPS |
| Q4 | Sep 1 – Dec 31 | January 15, 2027 | IRS Direct Pay or EFTPS |
Note: Deadlines shift when they fall on weekends or federal holidays. Q2 covers only 2 months (April–May), not 3 — a common source of underpayment. Verify current deadlines at IRS.gov.
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