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can i pay estimated taxes based on last year's taxes if i anticipate more income this year?
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you're interpreting this correctly. furthermore, if your total tax liability is less than $1000, you can not pay estimates at all, just pay at the tax day. see this safe harbor rule in the irs publication 17: general rule.    in most cases, you must pay estimated tax for 2016 if   both of the following apply. you expect to owe at least $1,000 in tax for 2016, after subtracting your withholding and refundable credits. you expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2016 tax return, or 100% of the tax shown on your 2015 tax return (but see special rules for farmers, fishermen, and higher income taxpayers , later).   your 2015 tax return must cover all 12 months.
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