Safe Harbor (Estimated Taxes)
TaxesA provision allowing taxpayers to avoid underpayment penalties by paying at least 100% of last year's tax liability (110% for high earners).
Example
Example: On a $75,000 salary, understanding safe harbor (estimated taxes) could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how safe harbor (estimated taxes) works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.