Quarterly estimated taxes for online sellers (2026)

Reviewed by Vincent Wesley Couey, CeoCult Editorial Team

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.

Related guides: Etsy seller taxes · Amazon FBA taxes · Shopify seller taxes · 1099-K explained · Quarterly tax deadline dashboard

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

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

The safe harbor method

Per IRS estimated-tax guidance, 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

1. Go to IRS Direct Pay at irs.gov/payments, free, no account required
2. Select "Estimated Tax" → Form 1040-ES
3. Choose tax year 2026
4. Enter your payment amount and bank account details
5. 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.

For sellers who want to understand their net profit before calculating quarterly taxes, the FBA profit calculator at Bag Engine helps Amazon sellers model their actual margins after COGS, fees, and advertising, giving you an accurate base number for quarterly estimates rather than guessing from gross revenue.