What Are the Quarterly Estimated Tax Due Dates?
Understand the federal requirements for paying tax on non-withheld income and the principles of the quarterly system to ensure timely compliance.
Estimated taxes are a pay-as-you-go system for income not subject to automatic withholding, such as earnings from self-employment, interest, and dividends. The purpose is to send tax payments to the IRS periodically throughout the year to cover your liability. This system helps you manage your tax obligations and avoid a large balance due when filing your annual return.
Who Must Pay Estimated Taxes
The requirement to pay estimated taxes is triggered when you anticipate owing at least $1,000 in tax for the year, after accounting for withholding and refundable credits. This applies to freelancers, independent contractors, and small business owners. People with significant income from investments, such as interest, dividends, or capital gains, may also need to make these payments.
To avoid underpayment penalties, you must meet “safe harbor” thresholds. Your total payments through withholding and timely estimated installments must equal at least 90% of your tax liability for the current year. An alternative safe harbor is to pay 100% of the tax shown on your prior year’s return, provided that return covered a full 12 months.
For taxpayers with a higher adjusted gross income (AGI), the prior-year threshold is increased. If your AGI in the previous year was more than $150,000, or $75,000 if married filing separately, you must pay at least 110% of your prior year’s tax. Meeting one of these safe harbor rules protects you from penalties, even if you owe more tax when you file your final return.
2025 Estimated Tax Payment Deadlines
The tax year is divided into four payment periods, each with a specific deadline. The first payment, covering income earned from January 1 to March 31, 2025, is due on April 15, 2025.
The second payment covers income from April 1 to May 31 and is due on June 16, 2025. The third installment, for income earned between June 1 and August 31, must be paid by September 15, 2025. The final payment for the year, which covers the period from September 1 to December 31, is due on January 15, 2026.
If a due date falls on a weekend or a legal holiday, the payment is due on the next business day. You are not required to make the January 15, 2026, payment if you file your 2025 tax return by January 31, 2026, and pay the entire balance due at that time.
Calculating Your Estimated Tax Payments
The primary tool for determining your payment amount is Form 1040-ES, Estimated Tax for Individuals. This form includes a worksheet to help project your financial picture for the year. You will estimate your adjusted gross income, taxable income, deductions, and any available tax credits.
Once you have calculated your total estimated tax, you divide this amount by four to determine your quarterly payment amount under the regular installment method. For example, if you estimate an annual tax of $12,000, you would make four payments of $3,000 each.
Some individuals have income that fluctuates significantly, such as seasonal business owners. In these cases, the annualized income installment method may be more appropriate. This method allows you to adjust your payment amount for each period based on the income earned, which can help avoid underpayment penalties.
How to Make Estimated Tax Payments
One of the most direct payment methods is IRS Direct Pay, which allows you to pay directly from a checking or savings account without fees. Another popular electronic option is the Electronic Federal Tax Payment System (EFTPS), a secure government website that allows for scheduling payments in advance.
Payments can be made by mail. You must include a payment voucher from Form 1040-ES with your check or money order. The check should be made payable to the “U.S. Treasury” and include your Social Security number and the tax year.
Payments can be made by phone or through the IRS2Go mobile app using a debit card, credit card, or digital wallet. Third-party payment processors handle these transactions and charge a fee for their service. You can also pay in cash at one of the IRS’s retail partners.