Massachusetts Form 1-ES: How to File and Pay
Understand how to manage Massachusetts estimated tax for income not subject to withholding, ensuring you meet compliance requirements and payment timelines.
Massachusetts Form 1-ES is a tax voucher used by individuals to pay taxes on income not subject to employer withholding. The form allows taxpayers to prepay their tax liabilities throughout the year, helping to avoid a large balance due when filing an annual return. This payment method is common for people who are self-employed, have significant investment income, or receive retirement distributions from sources outside of traditional wages.
Who Must Pay Massachusetts Estimated Taxes
Individuals must make Massachusetts estimated tax payments if they expect to owe more than $400 in state income tax for the year on income not covered by withholding. This rule applies to both residents and non-residents who earn income sourced to Massachusetts.
Even taxpayers with a regular salary may need to make estimated payments if their additional income generates a tax liability over the $400 threshold. Common sources of income that trigger this requirement include:
- Earnings from self-employment
- Partnership income and S corporation distributions
- Interest, dividends, and capital gains
- Rental properties
- Unemployment compensation without voluntary state withholding
A penalty can be imposed if a taxpayer fails to pay at least 80% of their total tax due for the year through withholding and timely estimated payments. This threshold is lowered to 66.67% for individuals whose income is at least two-thirds from farming or fishing. An exception to the penalty exists for those who were not liable for any tax in the prior 12-month tax year.
How to Calculate Your Required Payment
Taxpayers have two methods to calculate their required estimated tax payments. The first is the prior-year safe harbor method, where you pay 100% of the total tax liability from your previous year’s Massachusetts tax return. This method provides a clear benchmark and requires that the prior tax year was a full 12 months and you were a resident for the entire year.
The second option is the annualized income method, better suited for taxpayers whose income changes significantly year-to-year. This calculation requires you to estimate your total expected income, adjustments, and deductions for the current tax year to arrive at your projected taxable income. You then calculate your anticipated tax liability based on that projection, and your total payments must meet the 80% threshold mentioned previously.
For example, if your estimated 2025 Massachusetts tax is $5,000, your total payments must be at least $4,000. This amount is divided into four installments of $1,000 each. Taxpayers subject to the state’s 4% surtax on income over $1 million must include this tax in their calculations. If your financial situation changes, you can use an amended worksheet to adjust remaining payments.
Preparing Your Form 1-ES Payment Voucher
The official Form 1-ES packet, which includes a worksheet and four payment vouchers, can be downloaded from the Massachusetts Department of Revenue’s website. You must use the form for the correct tax year, as the state will not process payments on outdated vouchers.
To prepare a voucher, enter your full name, current address, Social Security number, and the calculated payment amount for the quarter. After completing the voucher, fill out the “Record of Estimated Tax Payments” section in the packet to maintain a personal record of your payments.
Filing Methods and Payment Due Dates
You have two methods for submitting your payment. The first is to mail the completed voucher with a check or money order payable to the Commonwealth of Massachusetts. It is recommended to write your Social Security number on the check to ensure proper credit. The mailing address is provided in the Form 1-ES instructions.
Alternatively, you can pay electronically through the state’s MassTaxConnect online portal, which provides immediate confirmation. A physical voucher is not mailed when paying online. Taxpayers subject to the 4% surtax are required to make their payments electronically.
Estimated tax payments are due in four quarterly installments. For 2025, the deadlines are April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. If a due date falls on a weekend or legal holiday, the payment is due on the next business day. You should retain a copy of the voucher and your proof of payment, as these will be needed when you file your annual state income tax return.