Quarterly Estimated Taxes in Texas: What Every Houston Business Owner Must Pay by June 15

Q2 estimated taxes are due June 15, 2026. If you own a business in Houston and no employer is withholding taxes from your income, the IRS expects a payment — not in April, right now. This guide tells you exactly who owes, how to calculate the right amount, and how to pay before the deadline.

Does Texas have quarterly estimated income tax?

Texas has no state income tax – which means there are no quarterly state estimated tax payments to the Texas Comptroller. Every quarterly estimated tax obligation a Houston business owner has is entirely federal, paid to the IRS using Form 1040-ES.

That said, “no state income tax” does not mean low taxes. Self-employment tax in Texas- the federal 15.3% Social Security and Medicare tax on net business income -applies to every sole proprietor, partner, and LLC owner regardless of where in Texas they operate. Most Houston business owners underestimate their quarterly bill because they forget this layer entirely.

Note on Texas franchise tax: The Texas franchise tax deadline was May 15, 2026 -a separate annual obligation to the Comptroller, not a quarterly income tax. If you missed it, an automatic extension to November 15 is available.

Who must make estimated tax payments in Houston?

You must pay quarterly if you expect to owe $1,000 or more in federal tax for 2026 and your income is not fully covered by employer withholding. This applies to:

• Sole proprietors & single-member LLCs (Schedule C)
• Partners & multi-member LLC owners
• Houston contractors & construction companies 
• Physicians & medical practice owners 
• Attorneys & law firm partners 
• Landlords with rental income

S-corp owners: your W-2 salary withholding may cover the payroll tax on that portion. But pass-through profits distributed above your salary flow to your personal return as ordinary income and that amount almost always requires separate quarterly estimated tax payments.

2026 quarterly tax deadline calendar

Watch out: Q2 covers only two months (April–May), but your payment must still equal one-quarter of your full-year liability. Missing June 15 does not defer the penalty to Q3 – the IRS underpayment penalty accrues daily from the missed due date.

How to calculate your payment- the safe harbor rule 2026

The safe harbor method is what most CPAs recommend. It eliminates the underpayment penalty entirely — no matter what you end up owing in April — because the target amount is fixed from your prior return.

Houston contractor example: $42,000 total tax in 2025, AGI over $150K.

$42,000 × 1.10 = $46,200 ÷ 4 = $11,550 per quarter.

Pay that each quarter and no underpayment penalty applies — even if 2026 income is much higher.

Alternatively, pay 90% of your projected 2026 liability if income is tracking significantly lower than last year. But if your Houston business is growing — construction, medical, legal — the prior-year safe harbor is simpler and safer. Need help running the numbers? Schedule a tax planning consultation →

The component most Houston business owners under-count: self-employment tax

Income tax is not the only thing you’re estimating. Self-employment tax in Texas — and everywhere — is 15.3% on net business income: 12.4% Social Security + 2.9% Medicare. If your net SE income exceeds $200,000 (single filer), add 0.9% Additional Medicare Tax on top.

What this looks like for a Houston contractor

• Net self-employment income: $120,000
• SE tax owed: ~$16,955
• Income tax (22% bracket): ~$17,000+
• Combined federal rate: 35–37% of net income

Half of SE tax is deductible on your return — but it must still be funded quarterly.

How to pay the IRS before June 15

IRS Direct Pay– Pay from checking/savings at irs.gov/payments. No registration. Instant confirmation. Select Form 1040-ES, year 2026, Q2. Fastest option for most owners.

EFTPS– Free federal system. Schedule all four 2026 payments at once. Best for business accounts and owners whose CPA manages payments on their behalf.

IRS2Go app– Mobile version of Direct Pay. Available iOS and Android. Same options, useful for Houston contractors managing on-site.

Business tax account– For S-corps and C-corps paying as an entity. Log in at IRS.gov/businesses. Sole proprietors and SMLLC owners use their personal IRS account.

Do not mail a check unless you have no other option. Electronic payments post immediately with a timestamped confirmation. A check postmarked June 16 is a missed deadline.

5 mistakes Houston business owners make with quarterly estimated taxes

1. Treating Q2 as a “short quarter”

Two months of income does not mean a smaller payment. Your installment is one-quarter of your annual liability- not revenue from April–May.

2. Forgetting self-employment tax in the estimate

The 15.3% SE tax is separate from your income tax bracket. Leaving it out causes systematic underpayment all year.

3. Using last year’s number without adjusting for growth

The safe harbor rule protects you from penalties but won’t prevent a large April balance if 2026 revenue has increased 20–30%.

4. Conflating Texas franchise tax with estimated income tax

Franchise tax was due May 15- a separate obligation. Missing one while focusing on the other is common in Houston each spring.

5. No dedicated tax reserve

Set aside 25–30% of net income monthly into a separate account. Houston construction companies running strong summer revenue especially need this discipline.

Industry spotlight: quarterly taxes by sector

Houston contractors & construction companies

Summer is peak revenue season for Houston builders — which makes Q2 and Q3 the highest-risk quarters for underpayment. The annualized income method (Form 2210, Schedule AI) lets contractors base each installment on actual income earned that quarter rather than a fixed annual estimate. It requires clean, current job cost records and WIP schedules exactly why construction-specific bookkeeping feeds directly into your quarterly tax strategy.

Houston physicians & medical practices

Physicians often have hybrid income: a W-2 from one hospital, 1099 fees from another practice, and pass-through income from a professional corporation. Each source has a different withholding situation. High-earning physicians over $200,000 also face the 0.9% Additional Medicare Tax which is not automatically withheld. A mid-year review in June is the right time to reconcile all income streams and confirm Q3 and Q4 payments are calibrated correctly.

Houston law firm partners & attorneys

Contingency fee income is irregular by nature. A single large settlement received in Q2 can create a spike that makes the prior-year safe harbor meaningfully insufficient. If you received a significant fee payment this quarter, consider voluntarily increasing Q2 and Q3 payments — not to avoid the penalty (the safe harbor handles that), but to manage the April 2027 balance due.