You missed an estimated tax payment. Here's the fix
Pay as soon as you can, since the underpayment penalty is like interest and runs from the due date until you pay. You avoid it by paying at least 90% of this year's tax or 100% of last year's, or 110% if your income was over $150,000. Don't skip the next payment.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- The penalty. Runs from due date to payment
- Safe harbors. 90% of this year, or 100% of last year
- High earners. 110% of last year above $150,000 AGI
How does the penalty work?
The underpayment penalty is based on how much you underpaid and how long it stayed unpaid. It uses the IRS interest rate for each quarter, so it's usually modest for a short delay. It adds up if you skip the year. It's not the same as the failure-to-pay penalty, which applies to the balance due with your return.
| Due date | For income earned |
|---|---|
| April 15 | January to March |
| June 15 | April to May |
| September 15 | June to August |
| January 15 | September to December |
If a date lands on a weekend or holiday, it moves to the next business day. Our tax deadlines calendar lists the exact days.
What are the safe harbors?
You won't owe the penalty if you owe less than $1,000 after credits and withholding, or if you paid either of these on time and evenly during the year.
- 90% of this year's tax
- 100% of last year's tax, or 110% if last year's AGI was above $150,000
The second one is the easiest to plan around, since you know the number in advance. Your income can double, and you'd still avoid the penalty if you paid last year's total, though you'd owe the rest by April.
What should you do now?
- Work out what you should have paid, using your year-to-date profit.
- Pay it today through IRS Direct Pay or your online account.
- Make the next quarterly payment on time.
- Set money aside from now on. Here's how much.
Can you avoid the penalty if your income was uneven?
Yes, maybe. If most of your income came late in the year, the annualized income method on Form 2210 can lower or remove the penalty. It's more paperwork, so check whether the saving is worth it. The IRS may also waive the penalty for casualty, disaster or other unusual cases.
Can withholding fill the gap?
Yes. Withholding counts as paid evenly through the year, whenever it happens. So if you or your spouse has a W-2 job, raising withholding late in the year can make up a missed estimate. S-Corp owners can do this through their own payroll. For the full rules, see our quarterly estimated taxes guide.
Sources
General information, not tax advice for your situation.
What happens if I miss one quarterly tax payment?
You may owe a small penalty on that amount. Pay as soon as you can, and keep making later payments.
Can I make up a missed quarterly payment?
Yes. Pay it anytime, and the penalty stops growing on that amount from the date you pay.
Do I have to pay estimated taxes in my first year?
If you had no tax liability last year, and you were a US citizen or resident all year, you generally won't owe a penalty.
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