When Is the Pay Taxes Deadline or Time to Set Up a Payment Plan?
Learn key deadlines for tax payments, options for setting up a payment plan, and what to do if you need more time to avoid potential penalties.
Taxes are a mandatory obligation, and missing deadlines can lead to penalties. Whether the amount owed is small or large, paying on time helps avoid fees and interest. If full payment isn’t possible, the IRS provides options to manage tax debt.
Official Payment Due Date
Federal income taxes are typically due on April 15. If the date falls on a weekend or holiday, the deadline moves to the next business day. For 2025, the deadline remains April 15 unless an extension is granted. This applies to individuals filing Form 1040 and self-employed taxpayers reporting income on Schedule C.
Freelancers, independent contractors, and investors with significant capital gains must make estimated tax payments quarterly—April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines can result in underpayment penalties, even if the full amount is paid by April 15.
State tax deadlines vary. While most align with the federal due date, some differ. In 2024, Delaware’s deadline was April 30, and Virginia’s was May 1. Taxpayers should verify their state’s requirements to avoid late fees.
Setting Up a Payment Arrangement
If full payment by the deadline isn’t possible, the IRS offers structured payment plans. An installment agreement allows taxpayers to pay over time. Those owing less than $50,000 qualify for streamlined approval, while larger balances require financial documentation.
Short-term payment plans, available for those who can pay within 180 days, have no setup fees but accrue interest and penalties. Longer repayment periods require a formal installment agreement. Setup fees range from $31 for online applications with direct debit to $225 for paper applications without automatic withdrawals. Interest continues to accumulate, making early repayment beneficial.
For those facing financial hardship, an Offer in Compromise (OIC) may allow settlement for less than the full amount owed. The IRS reviews income, expenses, and assets to determine eligibility. A non-refundable application fee and initial payment are required unless the applicant qualifies for a low-income waiver.
Penalties if You Miss the Deadline
Failing to pay on time results in a Failure to Pay Penalty of 0.5% of the unpaid tax per month, up to 25%. If an installment agreement is in place, the penalty drops to 0.25% per month.
Interest accrues daily on unpaid balances. The IRS calculates interest as the federal short-term rate plus 3%, compounded daily. If the federal short-term rate is 5%, the total interest rate would be 8%. Over time, this significantly increases the amount owed.
If a balance remains unpaid for too long, the IRS may escalate collection efforts. A Notice of Federal Tax Lien can be issued, affecting credit and making it harder to secure loans. In more serious cases, the IRS can initiate a levy, seizing bank accounts, wages, or other assets.
Extension Requests
Taxpayers needing more time to file can request a six-month extension by submitting Form 4868 before the original deadline. This moves the filing deadline to October 15, but taxes owed must still be paid by April 15 to avoid interest and penalties.
Businesses and partnerships use different forms. Corporations filing Form 1120 request an extension with Form 7004, which typically grants six additional months. Partnerships and S-corporations also use Form 7004, but their extended deadline usually falls in September. Estates and trusts filing Form 1041 must submit extension requests by their original due date.
Taxpayers living abroad receive an automatic two-month extension to June 15 without filing Form 4868, but interest on unpaid taxes still accrues from April 15. Military personnel serving in combat zones may qualify for additional extensions under IRC Section 7508, which extends deadlines based on the length of service.