Do landlords have to make quarterly estimated tax payments on rental income?
Often, yes. Rent has no withholding, so if you expect to owe at least $1,000 for 2026 after withholding and credits, you generally pay estimated tax on Form 1040-ES unless your withholding covers the smaller of 90% of this year's tax or 100% of last year's (110% if last year's adjusted gross income was over $150,000). The 2026 dates are April 15, June 15 and September 15, 2026 and January 15, 2027.
The test, from the 2026 Form 1040-ES
The 2026 Form 1040-ES says that in most cases you must pay estimated tax for 2026 if you expect to owe at least $1,000 after subtracting withholding and refundable credits, and you expect withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your 2026 return, or
- 100% of the tax shown on your 2025 return, if that return covered all 12 months.
For higher income taxpayers, the form says that if your 2025 adjusted gross income was more than $150,000 ($75,000 if married filing separately for 2026), substitute 110% for 100%. The IRS estimated taxes page adds that if income arrives unevenly, you may be able to lower or avoid a penalty by annualizing your income and making unequal payments.
2026 due dates
| Payment | Due | Covers rent earned roughly |
|---|---|---|
| 1st | April 15, 2026 | January to March |
| 2nd | June 15, 2026 | April and May |
| 3rd | September 15, 2026 | June to August |
| 4th | January 15, 2027 | September to December |
The form notes you do not have to make the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the entire balance with it. The uneven periods are why April and June can feel close together.
A worked example for an owner with a job
Example a made-up owner files single, has a salary with $24,000 of federal withholding expected for 2026, and owns a 12 unit building expected to net $36,000 after depreciation. Their 2025 return showed $28,000 of tax and adjusted gross income of $165,000. Because $165,000 is over $150,000, the prior-year safe harbor is 110% x $28,000 = $30,800. Their estimate of 2026 tax is $37,000, and 90% of that is $33,300. The smaller is $30,800. Withholding covers $24,000, leaving $6,800 to pay in estimates: four payments of $1,700 on the four due dates. The owner could instead ask their employer for $6,800 more withholding on Form W-4.
Using the prior-year figure is popular with landlords because it does not depend on guessing this year's repairs or vacancies. Paying more than the minimum is fine; paying less than a safe harbor can bring an underpayment penalty.
Using your books to set each payment
- Close each month so the profit and loss for every property is current.
- Two weeks before each due date, pull year-to-date net rental income across all properties.
- Compare it with your plan. A big repair, a vacancy or a rent increase changes the number.
- Flag one-off items that change the year: a sale of a building, a large casualty insurance payment, or catch-up depreciation.
- Send the figures to your tax preparer if the year is moving far from the plan, and adjust the next payment.
Rental profit can also trigger the 3.8% net investment income tax, which the IRS says is subject to the estimated tax rules too; see the NIIT guide.
If an LLC owns the building
A single-member LLC that is disregarded, or a multi-member LLC that files a partnership return, does not usually pay federal income tax itself; the profit flows to the owners, who make estimated payments on their own returns. The IRS estimated taxes page says individuals, including sole proprietors and partners, generally use Form 1040-ES. State rules can differ, and some states require estimates or withholding at the entity level; check your state.
Getting the quarterly number from DoorKeeping
With DoorKeeping, bank feeds and month-end close keep each property's books current, so before each due date you can ask your AI app for year-to-date net income by property and in total, and send it to your tax preparer. DoorKeeping does not calculate or pay your estimated tax, and it does not give tax advice.
Sources
- IRS, Form 1040-ES (2026), Estimated Tax for Individuals, read Oct 30, 2026
- IRS, Estimated taxes, read Oct 30, 2026
- IRS, Questions and answers on the Net Investment Income Tax, read Oct 30, 2026
Questions
- When are 2026 estimated tax payments due?
- April 15, June 15 and September 15, 2026, and January 15, 2027, per the 2026 Form 1040-ES.
- How do I avoid an underpayment penalty on rental income?
- Generally, pay at least the smaller of 90% of this year's tax or 100% of last year's through withholding and estimates, or 110% of last year's if last year's AGI was over $150,000.
- Can I raise my paycheck withholding instead of paying quarterly?
- Yes. The Form 1040-ES instructions say a new Form W-4 with your employer can cover tax on other income, including rent.