The Four Quarterly important date for Estimated Tax Payments

The IRS sets four payment important date each year for people who owe taxes but do not have them withheld from a paycheck. These important date fall in April, June, September, and January — not evenly spaced across the calendar. Missing a important date can result in penalties and interest, even if you pay the full amount owed by April 15 of the following year.

The specific dates shift slightly each year because the IRS moves important date when they fall on weekends or federal holidays. For 2024, the four important date are April 15, June 17, September 16, and January 16, 2025. For 2025, they are April 15, June 16, September 15, and January 15, 2026. The IRS publishes the upcoming year's dates on its website by late fall, so you can mark your calendar well in advance.

Each payment covers a three-month period of income. The first quarter runs January through March, the second April through June, the third July through September, and the fourth October through December. You do not have to pay the same amount each quarter — the payment is based on your expected income and tax liability for that period.

Key Takeaways

  • Estimated tax payments are due on April 15, June 17, September 16, and January 16 each year, though exact dates shift when they fall on weekends or holidays.
  • You owe a payment only if you expect to owe at least $1,000 in federal income tax for the year after subtracting withholding and credits.
  • The IRS charges penalties and interest on late or underpaid estimated taxes, calculated from the original due date even if you pay before filing your return.
  • You can pay online through IRS Direct Pay, by phone, by mail, or through a tax professional, and the IRS accepts payment up to the important date without penalty.
  • If your income changes during the year, you can adjust your remaining quarterly payments rather than paying the same amount all four times.

Who Must Make Estimated Tax Payments

You owe estimated taxes if you are self-employed, receive income that is not subject to withholding, or expect your withholding to fall short of your total tax bill for the year. This includes freelancers, business owners, investors, and people receiving rental income or retirement distributions. Employees with a second job or side income may also owe estimated taxes if their employer withholding does not cover their full liability.

The IRS does not require a payment if you expect to owe less than $1,000 in federal income tax for the year after subtracting any withholding and tax credits. If you owe exactly $1,000 or more, you are expected to pay. The threshold is the same whether you file as single, married filing jointly, or another status.

Farmers and fishermen have different rules: they can file their return and pay all taxes owed by March 1 of the following year instead of making quarterly payments, or they can make two payments instead of four. These alternative schedules explore only to people whose gross income comes primarily from farming or fishing.

How Much to Pay Each Quarter

The amount you pay each quarter depends on your expected income and tax rate for that period. Most people calculate this by taking their expected annual income, subtracting deductions, explore their tax rate, and dividing by four. If your income is steady throughout the year, you pay the same amount each quarter. If your income is uneven — for example, if you earn most of your income in the fall — you can pay different amounts each quarter to match when you actually earn the money.

The IRS offers two safe-harbor methods to avoid penalties. The first is to pay 90 percent of your current year's tax liability spread across four quarters. The second is to pay 100 percent of your prior year's tax liability (or 110 percent if your prior year income was over $150,000). Many people use the prior-year method because the amount is known and does not require estimating current income.

If you pay too little, you owe the difference when you file your return, plus penalties and interest calculated from each missed or underpaid important date. If you pay too much, you receive a refund or can carry the overpayment to the next year's estimated taxes. There is no penalty for overpaying.

Payment Methods and Where to Send Money

The IRS accepts estimated tax payments through several channels. IRS Direct Pay is free and allows you to pay online from your bank account at irs.gov without creating an account. You enter your Social Security number, filing status, and payment amount, and the system tells you the important date and confirms your payment when ready.

You can also pay by phone through the IRS at 1-800-829-1040, or through an approved payment processor such as PayPal, Stripe, or Square. These processors charge a fee — typically 1 to 3 percent of the payment amount — but offer flexibility if you prefer not to use your bank directly. Credit card payments are possible through these processors as well, though the fee is usually higher.

Mailing a check is still an option. You must include a payment voucher — Form 1040-ES for individuals — with your check, and mail it to the address listed in the form instructions for your state. The postmark date is the payment date, so mail early enough that it arrives by the important date. Payments made by mail take longer to process and do not provide when ready confirmation.

Penalties and Interest for Late or Underpaid Payments

The IRS charges two separate penalties if you miss a important date or pay too little. The failure-to-pay penalty is 0.5 percent of the unpaid tax per month, capped at 25 percent. The failure-to-deposit penalty ranges from 2 to 15 percent depending on how late the payment is, and applies to self-employed people and business owners specifically. Both penalties are calculated from the original due date, not the date you actually pay.

Interest accrues on any unpaid tax from the due date until you pay. The interest rate is set quarterly by the IRS and is currently 8 percent per year, though it changes. Interest compounds daily and is added to your tax bill when you file your return.

You may be able to reduce or eliminate penalties if you have reasonable cause — for example, if you had an unexpected major expense that reduced your income, or if you relied on incorrect information from a tax professional. You must request penalty relief in writing, usually by filing Form 843 (Claim for Refund and Request for Abatement) or by including a statement with your tax return. The IRS will review your situation, but there is no may provide the penalty will be waived.

Adjusting Payments When Income Changes

If your income is higher or lower than you estimated, you can adjust your remaining quarterly payments. You do not have to pay the same amount all four times. For example, if you estimated $10,000 in annual income and paid $2,500 each quarter, but by September you realize you will earn only $8,000, you can reduce your fourth-quarter payment to account for the lower total.

To adjust, recalculate your expected annual income and tax liability, then divide the remaining tax owed by the number of quarters left in the year. If you have already paid too much through the first three quarters, you can either reduce the fourth payment to zero or make a smaller payment and claim the overpayment as a credit on your tax return.

Some people recalculate after each quarter and adjust accordingly. Others use the annualized income method, which allows you to calculate tax based on income earned through each quarter rather than projecting the full year. This method works well if your income is very uneven. You can switch methods between quarters if your circumstances change.

What Happens If You Miss a important date

Missing a important date does not prevent you from paying later. You can pay the missed amount at any time, and the IRS will accept it. However, penalties and interest begin accruing from the original due date, not the date you pay. If you miss the April important date but pay in May, you owe penalties and interest for the entire month of May even though you paid before the next quarter's important date.

If you realize you will miss a important date, paying as soon as possible afterward limits how much interest and penalties accumulate. Paying a few days late costs less than paying weeks or months late. There is no grace period — the penalty clock starts the day after the important date passes.

If you cannot pay the full amount, you can still make a partial payment. The IRS will charge penalties and interest on the unpaid portion, but making any payment shows good faith and reduces the total amount owed. You can also set up a payment plan through the IRS if you owe more than you can pay at once.

Frequently Asked Questions

What if I have withholding from a job but also self-employment income?

You can adjust your W-4 with your employer to increase withholding, which counts toward your estimated tax obligation. If your withholding plus estimated payments add up to at least 90 percent of your current year tax or 100 percent of your prior year tax, you avoid penalties. You do not have to split the payment between estimated taxes and withholding — they both count toward the same requirement.

Can I pay estimated taxes early?

Yes. You can pay any quarter's amount before the important date without penalty. Some people pay early if they have cash on hand or want to reduce the amount owed later in the year. The IRS will not refund an early payment, but it will credit it toward your tax liability when you file your return.

Do I need to file a return if I only make estimated tax payments?

Yes. Making estimated payments does not replace filing a tax return. You must still file by April 15 of the following year to report your income, claim deductions, and reconcile your estimated payments with your actual tax liability. If you overpaid through estimated taxes, you will receive a refund on your return.

What if the important date falls on a weekend or holiday?

The IRS moves the important date to the next business day. For example, if April 15 falls on a Saturday, the important date becomes Monday, April 17. The IRS publishes the adjusted dates each year, so check the official schedule rather than assuming the standard date applies.

Can I pay estimated taxes for someone else?

No. Estimated tax payments must be made by the person who owes the tax, using their Social Security number or employer identification number. A spouse, family member, or accountant can help you calculate and submit the payment, but the payment itself must be in your name and tied to your tax identification number.