Quarterly Estimated Taxes for Owner-Operators

Who has to pay estimated taxes

You generally must make estimated payments if both are true for the year:

• You expect to owe at least $1,000 in federal tax after withholding and credits, and
• your withholding will be less than the smaller of 90% of this year’s tax or 100% of last year’s tax.

That covers almost every owner-operator with their own authority and every leased-on driver paid on a 1099. Company drivers on a W-2 usually have tax withheld and do not need to, unless they have side income.

2026–2027 due dates

You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the full balance with it. These dates are separate from your IFTA fuel tax returns, which are due the last day of the month after each calendar quarter.

How to avoid the underpayment penalty

The IRS charges a penalty when you pay too little, too late, even if you pay everything in April. You are safe if your four payments, made on time, add up to at least the smaller of:

• 90% of your tax for this year, or
• 100% of your total tax for last year, or 110% if last year’s adjusted gross income was over $150,000 ($75,000 married filing separately).

The prior-year rule is the easiest for truckers, because income swings with rates and fuel. Take last year’s total tax, divide by four, and pay that each quarter. If 2026 is a much better year, you still avoid the penalty and settle the rest when you file.

How much to set aside from each load

Self-employment tax alone is 15.3% (12.4% Social Security plus 2.9% Medicare) on 92.35% of your net profit. Social Security tax stops at the $184,500 wage base for 2026. Income tax comes on top, after your deductions.

Self-employment tax = net profit × 0.9235 × 15.3%
Example: $80,000 net profit × 0.9235 × 0.153 = $11,304

Many owner-operators move 25% to 30% of net profit into a separate tax savings account every settlement. Your real rate depends on your deductions, filing status and state. The truck driver tax calculator estimates your federal and self-employment tax, and the per diem deduction can cut your taxable profit by thousands of dollars.

How to pay

• IRS Online Account or IRS Direct Pay: free bank transfers at IRS.gov/Payments. Choose “estimated tax” and the right year.
• EFTPS: free, but you must enroll first, which takes a few days.
• Card or digital wallet: allowed, but the processor charges a fee.
• Check with the Form 1040-ES voucher for that quarter.

Most states with an income tax also want quarterly payments. Check your state’s revenue department. For the full tax picture, see owner-operator taxes. This guide is general information, not tax advice. A tax pro who works with truckers can set your exact payments.

Common questions