If you're a US freelancer, creator, or sole proprietor — or a Canadian self-employed individual — you generally owe quarterly estimated tax payments instead of (or in addition to) employer withholding. Skip them and you can owe an underpayment penalty at filing time, plus a painful one-time bill in April.
ExpenseBot's Settings → Tax cash flow card shows your year-to-date net income, a suggested set-aside, and the next quarterly deadline at a glance.
Quick rule of thumb
A common starting point for sole proprietors and freelancers is 30% of net business income:
| Component | Approximate share |
|---|---|
| Self-employment tax (SS + Medicare) | ~15.3% of net (up to the SS wage base) |
| Federal income tax | ~12–17% effective, depending on bracket |
| State / provincial income tax | Varies — add separately if applicable |
If you're in a high-tax state (CA, NY, OR) or province (QC, ON) you may need 35–40%. If your net is low and most of it falls under the standard deduction, 25% can be enough.
US deadlines (IRS Form 1040-ES)
| Quarter | Deadline |
|---|---|
| Q1 (Jan–Mar income) | April 15 |
| Q2 (Apr–May income) | June 15 |
| Q3 (Jun–Aug income) | September 15 |
| Q4 (Sep–Dec income) | January 15 of the following year |
Pay online at EFTPS.gov or IRS Direct Pay. Mail-in is also accepted with Form 1040-ES vouchers.
Canadian deadlines (CRA T1 instalments)
| Quarter | Deadline |
|---|---|
| Q1 | March 15 |
| Q2 | June 15 |
| Q3 | September 15 |
| Q4 | December 15 |
Pay through CRA My Account, online banking ("Federal — Tax Instalment"), or by mail with the personalized voucher CRA sends.
Quebec residents have separate provincial instalments (Revenu Québec) for QPP/QPIP — check Mon dossier.
What the Tax cash flow card does
The card and modal in Settings → Tax cash flow:
- 📊 Pull your year-to-date net income from the Income (Beta) tab minus deductible expenses from your main spreadsheet
- 💰 Show estimated tax owed at your chosen set-aside rate (25% / 30% / 35% / custom)
- ✅ Track payments you've already made — type the running total into "I've paid this year"
- ⏰ Show the next quarterly deadline and how many days away it is (turns red when ≤ 14 days)
- 🌍 Country-aware — uses US dates for US-based users, CRA dates for Canada
What it does NOT do
- It does not file or pay your taxes — it's a planning estimate
- It does not include state / provincial income tax in the 30% rate
- It does not handle complex situations: spouse income, multiple businesses, large W-2 income alongside 1099, foreign tax credits, etc.
For anything beyond a sole-prop rough cut, talk to your accountant.
Avoiding the underpayment penalty
The US safe harbor rule: you generally avoid a penalty if your quarterly payments total at least the smaller of:
- 90% of this year's tax, OR
- 100% of last year's tax (110% if last year's AGI was over $150K)
Canada's rule is similar — pay the lesser of the CRA's instalment reminder or your actual liability.
Related
- S-Corp Election for Sole Props — if your net is consistently above ~$60K, you may save more than what quarterly cadence alone provides
- S-Corp for Content Creators — creator-specific S-Corp math (higher threshold, different split, entertainer-scrutiny angle)
- 1099-K Phantom Income — if your quarterly income runs through Patreon / OnlyFans / Twitch / Stripe, you're paying tax on the GROSS unless you deduct platform fees
- Canadian Tax Deadlines 2026 — full CRA calendar with all instalment + filing dates