Updated for tax year 2026

Underpayment Penalty Calculator

Estimate the IRS penalty the way Form 2210 figures it, quarter by quarter, for this year or the return you just filed, and see whether it should be lower.

Which tax year?

Use your best estimate of this year's figures. Payments dated in the future are treated as made on that date.

Form 1040, line 24. This is after credits and includes self-employment tax.

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Form 1040, line 25d. Enter 0 if nothing was withheld.

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Earned income credit, additional child tax credit, and the other credits on Form 1040 lines 27 through 31. Most filers leave this at 0.

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Last year's Form 1040, line 24. This sets your safe harbor amount.

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Was your 2025 AGI over $150,000?
Estimated payments you made

Each payment with the date it was sent. Leave a row blank if you skipped that quarter. A 2025 refund you applied to 2026 counts as a payment dated Apr 15, 2026.

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Example Enter your 2026 and 2025 total tax to see the penalty, quarter by quarter.
Estimated underpayment penalty, regular method
$826.77

This is the figure the IRS bills when you file without Form 2210. It assumes you owed $4,500 at each deadline, a quarter of your $18,000 required annual payment.

QuarterDueUnderpaidDays latePenalty
Q1Apr 15, 2026$4,500365$305.63
Q2Jun 15, 2026$4,500304$260.51
Q3Sep 15, 2026$4,500212$182.96
Q4Jan 15, 2027$4,50090$77.67

Interest at 6% to 7% a year on each shortfall, from its due date to the day it was paid or to Apr 15, 2027, whichever came first. Withholding is credited in four equal parts on the due dates. The IRS has not announced the rate for Jan 1, 2027 onward yet. This assumes it stays at 7%.

Did your income arrive unevenly?

The annualized income method sizes each installment to what you had actually earned by that deadline. If a big share of your income came late in the year, it can lower this penalty or remove it. The full calculator runs both methods and produces the Form 2210 and Schedule AI to file.

How the penalty is figured

The penalty is interest, not a fine. Form 2210 starts by finding your required annual payment, the smaller of 90% of this year's tax and 100% of last year's tax (110% if last year's AGI was over $150,000). Under the regular method a quarter of that amount was due at each of the four deadlines. For every deadline you fell short, interest runs on the shortfall from the due date until the money came in.

Payments are applied to the oldest shortfall first, whatever quarter you meant them for, and withholding is spread evenly across the four dates no matter when it happened. Both rules come from the Form 2210 instructions, and both are built into this calculator.

When the number should be lower

The regular method assumes your income arrived in four even pieces. If it did not, the IRS offers the annualized income method instead. It looks at the income you had actually received by March 31, May 31, and August 31, and requires only the tax on that. A freelancer whose big client paid in November, or an investor who sold in December, owed far less in the spring than a quarter of the year's total, and the penalty on those early quarters drops accordingly.

The IRS does not apply this method for you. You claim it by filing Form 2210 with Schedule AI and checking box C, either with your return or in response to a penalty notice. Our guide, how to lower an IRS underpayment penalty, covers that and the other grounds for relief. The annualized income method guide explains the calculation itself.

What this calculator does not cover

It figures the federal penalty for 2026 returns, filed in 2027, using the regular method. It does not apply the actual withholding dates of box D, the waivers of Part II, or the farmer and fisherman rules of Form 2210-F, and it does not compute state penalties. If a payment arrived after Apr 15, 2027, the IRS charges interest past that date on top of the amount shown here.

Frequently asked questions

Each of the four installment deadlines is checked on its own. For every installment that was short, the IRS charges interest on the shortfall from that due date until the day it was paid, or until the April filing deadline if it was never paid. The rate is set each quarter. For 2026 returns it is 6% to 7% a year. Form 2210 walks through the same arithmetic this calculator runs.

This is just one piece

Get your complete quarterly estimate. Every income type, federal and state, penalties, and the method that pays the least, combined in one place.