Quarterly estimated taxes for online sellers (2026)
Etsy, Amazon, eBay, Shopify — none of them withhold income tax or self-employment tax from your payouts. If you sell online and earn a profit, the IRS expects you to pay taxes four times per year. Miss a payment and you'll owe penalties. Here are the 2026 due dates, how to calculate what you owe, and exactly how to pay.
Why online sellers owe quarterly taxes
No selling platform withholds income or self-employment tax. When you're self-employed, the IRS expects you to pay as you earn through Form 1040-ES. If you expect to owe $1,000 or more in federal taxes for the year, quarterly payments are required. Skip them and you'll face underpayment penalties — even if you pay everything at filing time.
2026 quarterly due dates
| Quarter | Income period | Payment due date |
|---|---|---|
| Q1 | January 1 – March 31 | April 15, 2026 |
| Q2 | April 1 – May 31 | June 15, 2026 |
| Q3 | June 1 – August 31 | September 15, 2026 |
| Q4 | September 1 – December 31 | January 15, 2027 |
Note: Q2 covers only two months while Q3 covers three. If a due date falls on a weekend or holiday, the deadline moves to the next business day.
How much to pay: the simple method
Set aside 25–30% of your net profit (revenue minus COGS minus expenses) into a separate savings account. Pay that amount quarterly.
Your net profit is subject to two federal taxes:
- Self-employment tax: 15.3% on 92.35% of net profit (Social Security + Medicare)
- Federal income tax: depends on total income and filing status — most active sellers fall in the 12% or 22% bracket
Get the quarterly tax calendar + set-aside calculator (PDF)
All four due dates with a simple worksheet that calculates exactly how much to set aside each month based on your sales.
The safe harbor method
The IRS won't charge penalties if you meet one of these:
- 100% of prior year's tax: Pay at least 100% of last year's total tax, split into four equal payments (110% if AGI exceeded $150,000).
- 90% of current year's tax: Pay at least 90% of what you'll owe this year.
The prior-year method is safest for variable-income sellers — you know the target in advance.
How to actually pay
- Go to IRS Direct Pay at irs.gov/payments — free, no account required
- Select "Estimated Tax" → Form 1040-ES
- Choose tax year 2026
- Enter your payment amount and bank account details
- Save your confirmation number
Alternatives: EFTPS (requires enrollment), credit/debit card (fees apply), or mail a check with a 1040-ES voucher.
State quarterly taxes
If your state has income tax, you likely owe state estimated payments too. Most follow the same quarterly schedule. States with no income tax — Texas, Florida, Washington, Nevada, Wyoming, South Dakota, Alaska, New Hampshire, Tennessee — don't require state estimated payments on business income.
What happens if you don't pay quarterly
The IRS charges an underpayment penalty: interest on the amount you should have paid, at the federal short-term rate plus 3 percentage points, compounding daily. Typically 5–8% annually. It's assessed per quarter, so missing early quarters costs more.
Tips for managing quarterly payments
- Open a separate savings account. Transfer 25–30% of every payout immediately.
- Track deductions monthly. Your quarterly estimate should reflect net profit, not gross revenue.
- If you have a W-2 job, increase withholding instead. Submit a new W-4 requesting additional withholding to cover your selling income — eliminates quarterly payments entirely.