When is the last 2026 estimated tax payment due?
The fourth-quarter 2026 estimated payment is due Friday, January 15, 2027. That's true for both the federal payment (Form 1040-ES) and the New York payment (Form IT-2105). It covers income you earned from September through December 2026.
If you're self-employed, have rental income or had a big gain this year, this is the payment that decides whether you start 2027 with a penalty. (For the full year-round system, read our guide to quarterly estimated taxes.)
Who needs to make it
- Federal: generally anyone who expects to owe $1,000 or more for 2026 after withholding and credits (IRC §6654(e)(1); Form 1040-ES).
- New York: generally anyone who expects to owe $300 or more in New York State, New York City or Yonkers tax after withholding and credits (Form IT-2105 instructions).
The penalty works like interest, even if you pay in full in April
People are often surprised by this one. Paying everything you owe with your return in April doesn't erase the penalty for paying too little during the year.
The federal underpayment penalty is figured separately for each quarter. It's charged at the IRS interest rate, set every quarter, on the amount you were short, for the number of days it stayed unpaid (IRC §6654(a), §6621). So:
- If you skipped the September payment, the penalty on that quarter has been building since September 15 and keeps building until you pay.
- Paying in January stops it from growing. It doesn't undo what already built up.
- A late January payment only helps the fourth quarter. If earlier quarters were short, paying sooner is still cheaper.
New York charges its own penalty on underpaid estimated tax (NY Tax Law §685(c)), figured on Form IT-2105.9.
The safe harbors: how much is enough
You usually don't owe a federal penalty if your withholding and estimated payments, paid on time, add up to at least the smaller of:
- 90% of your 2026 tax, or
- 100% of your 2025 tax, or 110% if your 2025 adjusted gross income was over $150,000 ($75,000 if married filing separately) (IRC §6654(d)(1)).
The prior-year safe harbor is the easier one to hit, because you already know last year's number. If you've been paying 100% (or 110%) of last year's tax in four equal amounts, the January payment just finishes the set.
New York uses the same 90% / 100% / 110% tests on your New York tax, with the $150,000 measured on New York adjusted gross income (Form IT-2105 instructions).
Farmers and fishermen have different rules: one payment due January 15 at 66⅔%.
The early-filing exception
There's one way to skip the January payment without a penalty for that quarter: file your 2026 return and pay the full balance early.
- Federal: the law says by January 31 (IRC §6654(h)). January 31, 2027 is a Sunday, so the 2026 Form 1040-ES gives the date as February 1, 2027 (IRC §7503).
- New York: the IT-2105 instructions say on or before January 31, 2027. Because the New York instructions name the Sunday date, plan to file both returns by Friday, January 29, 2027 if you're counting on this.
This only removes the penalty on the fourth payment. It doesn't help if the April, June or September payments were short. And it only works if your W-2s, 1099s and records are ready in January, which isn't always the case.
How to pay
Paying online is the safest way to make sure the payment counts on time.
Federal:
- IRS Direct Pay at IRS.gov/Payments, free, from your checking or savings account.
- EFTPS, free, but you have to enroll first, and enrollment takes time. Do it well before January 15.
- Your IRS Online Account at IRS.gov/Account, where you can also see the payments you've already made.
- Card payments work too, but the processors charge a fee.
Pick the payment type "estimated tax" and the tax year 2026. If you mail a check, the IRS now treats the postmark as the date the mail is processed at a USPS facility, which may be later than the day you dropped it off (Form 1040-ES).
New York: make the payment through your Online Services account at tax.ny.gov, from your checking or savings account, or mail it with Form IT-2105.
How we help
We prepare federal and New York returns for self-employed people, landlords and small business owners, fully remote. If you're not sure what your January payment should be, we can work out the number from your year so far and both safe harbors. If you're also thinking about a year-end purchase, read buying equipment before December 31, since a large deduction can change what you owe.
Shane Panas is an IRS PTIN holder, a New York State registered tax return preparer and a Certified QuickBooks ProAdvisor (Level 2).
Book a free 15-minute call and we'll help you figure out whether you need to pay, and roughly how much.
Sources
- Internal Revenue Code §6654 (underpayment of estimated tax), including §6654(d)(1) (safe harbors), §6654(e)(1) ($1,000 threshold) and §6654(h) (early-filing exception)
- Internal Revenue Code §6621 (interest rate) and §7503 (weekend and holiday due dates)
- IRS Form 1040-ES (2026), payment due dates and payment methods
- IRS Publication 505, Tax Withholding and Estimated Tax
- NY Tax Law §685(c) (New York estimated tax penalty)
- NYS Form IT-2105-I (2026), Instructions for Estimated Tax Payment Voucher for Individuals, and Form IT-2105.9
Frequently asked questions
- When is the fourth-quarter 2026 estimated tax payment due?
- January 15, 2027, for both the federal payment (Form 1040-ES) and the New York payment (Form IT-2105).
- If I pay everything with my return in April, do I still owe a penalty?
- You can. The underpayment penalty is figured quarter by quarter, like interest, on any amount that was short when each payment was due. Paying in April stops it from growing but doesn't erase it.
- How much do I have to pay to avoid the penalty?
- Usually the smaller of 90% of your 2026 tax or 100% of your 2025 tax, paid on time through withholding and estimates. If your 2025 adjusted gross income was over $150,000, the prior-year amount is 110%.
- Can I skip the January payment?
- For the federal return, yes, if you file your 2026 return and pay the full balance by February 1, 2027. New York's instructions say January 31, 2027, so file both by Friday, January 29 to be safe. This only covers the fourth payment.
General information, not advice for your situation.