Estimate your IRS underpayment penalty for missed quarterly estimated taxes — free, instant
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An enrolled agent or CPA can file Form 2210 to waive or reduce your penalty. Get a free 15-minute consult — no obligation.
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Try free for 14 days ↗The IRS underpayment penalty rate for 2026 is 7% annualized in Q1, dropping to 6% from Q2 onward. The rate equals the federal short-term interest rate plus 3 percentage points, adjusted each quarter. During 2024 it was 8% all year; it dropped to 7% in 2025.
You can avoid the penalty by meeting one of the IRS safe harbor rules: pay at least 90% of your current year tax, or 100% of last year's tax (110% if your prior year AGI exceeded $150,000). You also owe no penalty if your balance due is under $1,000. See our full penalty avoidance guide.
The 2026 estimated tax due dates are: Q1 — April 15, 2026; Q2 — June 16, 2026; Q3 — September 15, 2026; Q4 — January 15, 2027. Note that Q2 only covers two months (April–May), so the deadline comes faster than most freelancers expect. See our full 2026 deadline guide.
The IRS does not charge an underpayment penalty if your total tax liability minus withholding is less than $1,000. Above that threshold, the penalty applies to any quarterly shortfall from your due date until April 15 of the following year.
Yes. The IRS may waive the penalty if you retired after age 62, became disabled, had unusual income fluctuations, or relied on incorrect IRS advice. File Form 2210 and attach a written explanation. A CPA or enrolled agent can significantly improve your chances of a successful waiver.