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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteThere is no federally required savings percentage of gross income for high earners. For 2026, the IRS instead tests whether your withholding and estimated payments are sufficient against your expected tax and a prior-year safe harbor. Use the 2026 Form 1040-ES worksheet to calculate your own target; the key federal thresholds are generally a $1,000 expected balance due and payments equal to the smaller of 90% of your 2026 tax or 100% of your 2025 tax—or 110% if your 2025 adjusted gross income exceeded the high-income threshold.
What the federal tax test actually measures
Estimated-tax rules are designed to assess whether you paid enough federal tax during the year to avoid an underpayment penalty. They do not tell you what percentage of income to set aside for your final bill, and meeting a safe harbor does not necessarily mean you have paid all the tax you will ultimately owe.
In general, estimated payments may be required if you expect to owe at least $1,000 after withholding and refundable credits, and those payments and credits are below the applicable required amount. The required annual payment is generally the smaller of:
- 90% of your expected 2026 tax; or
- 100% of the tax shown on your 2025 return—or 110% for many higher-income taxpayers.
These are general federal rules; exceptions and worksheet details can affect an individual calculation. See the IRS Publication 505 for 2026 and its estimated-tax FAQ.
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How to calculate your 2026 federal target
- Estimate your total 2026 federal tax. Include income tax and any relevant self-employment or other taxes. Use the 2026 Form 1040-ES worksheet rather than multiplying gross income by a generic percentage.
- Subtract expected withholding and refundable credits. If the expected balance after these amounts is below $1,000, the general estimated-payment requirement may not apply.
- Calculate both safe-harbor amounts. Compare 90% of expected 2026 tax with the applicable percentage of 2025 tax. For many higher-income taxpayers, the prior-year figure uses 110% rather than 100%.
- Determine the amount and timing still needed. Count withholding and estimated payments toward the required annual amount, then check whether each installment is adequate by its due date.
- Update the calculation when circumstances change. Revisit it after changes in salary, bonuses, equity vesting, investment or business income, deductions, or credits. If income is uneven, consider the annualized method.
When the 110% prior-year threshold applies
For 2026 estimated-tax calculations, the higher prior-year safe harbor generally applies if your 2025 adjusted gross income was over $150,000, or over $75,000 if you are married filing separately. In that case, compare 90% of expected 2026 tax with 110% of the tax shown on your 2025 return; the applicable annual payment amount is generally the smaller figure. If you do not cross the relevant AGI threshold, the prior-year comparison is generally 100% instead.
The AGI thresholds refer to 2025 income, while the percentage test compares tax amounts. Use the IRS worksheet for the precise figures and applicable adjustments for your filing situation.
Withholding or estimated payments?
Both can count toward the federal requirement. If you receive wages, you can ask your employer to increase federal income-tax withholding by submitting an updated Form W-4. This can be simpler than making separate estimated payments, especially when wage income is steady.
By default, the IRS generally treats withholding as paid evenly across the installment dates, even when more was withheld later in the year. You may instead use actual withholding dates. That timing distinction can matter if you increase withholding late in the year; Publication 505 explains the calculation.
Estimated payments may be more practical for income not subject to paycheck withholding, such as business income or investment gains. You can use withholding, estimated payments, or a combination, but track the amounts and dates so you can assess each installment.
2026 estimated-tax dates and installment timing
For calendar-year individual taxpayers, the ordinary federal estimated-tax dates are:
| Payment period | Due date |
|---|---|
| First | April 15, 2026 |
| Second | June 15, 2026 |
| Third | September 15, 2026 |
| Fourth | January 15, 2027 |
A weekend or legal holiday moves a due date to the next qualifying day. You may pay the full estimated amount by the first due date or use installments, but the installment amounts must be adequate when due to avoid a possible underpayment penalty. A later payment or refund does not necessarily erase a shortfall from an earlier period.
What to do when income arrives unevenly
A large bonus, stock sale, or other one-time receipt does not automatically mean you must make the same-sized quarterly payment as if the income had arrived evenly throughout the year. The IRS says, “A sizable capital gain by itself may not give you a requirement to make a quarterly estimated tax payment.” See the IRS FAQ section “Large gains, lump-sum distributions, etc.”.
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If income is concentrated in part of the year, the annualized income installment method may better align required payments with when income was earned. The method calculates installments as income accumulates rather than assuming it was received evenly. When applying it, use Schedule AI of Form 2210 with your return. Annualization is a calculation method, not a blanket exemption from payment; check the worksheet and your actual facts.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Federal rules do not set your state or local amount
State and local estimated-tax rules are separate. Their thresholds, safe harbors, and payment schedules vary by jurisdiction, so the federal percentages and dates should not be assumed to apply. Check the tax authority for each state or locality where you have a filing obligation, or consult a qualified tax professional if you have income across multiple jurisdictions.
Choosing a practical savings approach
Your savings target and the IRS penalty-avoidance target are related but different. The safe harbor helps determine whether payments during the year are sufficient for federal penalty purposes; it does not estimate the full amount you will owe when filing. For a personal cash reserve, base the estimate on your projected total tax, less all expected withholding, credits, and payments—not on a universal high-earner percentage.
- Use the 2026 Form 1040-ES worksheet to calculate the federal amounts.
- Recheck after material changes in income, deductions, credits, or withholding.
- Track payment dates as well as annual totals.
- Calculate state and local obligations separately.
Equity compensation, pass-through business income, large gains, or multiple jurisdictions can make the calculation more involved. A CPA, enrolled agent, or other qualified tax professional can help tailor the payment plan to your situation.
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