Federal estimated tax payments are due four times a year: April 15, June 15, September 15, and January 15 of the following year. These dates apply to self-employed individuals, freelancers, landlords, and anyone else who owes taxes that aren’t covered by employer withholding. If any due date falls on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day.
The Four Payment Periods and Due Dates
The IRS divides the tax year into four uneven periods, each with its own deadline. The periods don’t line up neatly with calendar quarters, which catches some people off guard.
- Period 1 (January 1 through March 31): Payment due April 15
- Period 2 (April 1 through May 31): Payment due June 15
- Period 3 (June 1 through August 31): Payment due September 15
- Period 4 (September 1 through December 31): Payment due January 15 of the following year
Notice that the second period covers only two months while the third and fourth periods each cover three. This means the gap between your first and second payments is just two months, not three. If you’re budgeting quarterly payments evenly throughout the year, mark June 15 carefully since it arrives faster than you might expect.
Why the Periods Aren’t Equal
The IRS structured the schedule so the first estimated payment coincides with the annual tax return filing deadline on April 15. That gives you a single date to both file last year’s return and make your first estimated payment for the current year. The rest of the schedule then spaces payments roughly every two to three months through the end of the year. The fourth-quarter payment lands in January of the next year, giving you a few extra weeks after December 31 to calculate income earned in the final months.
Weekend and Holiday Adjustments
When a due date lands on a Saturday, Sunday, or a federally recognized legal holiday, the deadline moves to the next business day. For example, if April 15 falls on a Saturday, your payment isn’t due until Monday, April 17. This rule applies to all four estimated tax deadlines. You don’t need to request an extension or take any special action. Just make sure your payment is submitted or postmarked by that adjusted date.
Who Needs to Pay Quarterly
You generally need to make estimated payments if you expect to owe $1,000 or more in federal tax for the year after subtracting withholding and credits. This commonly applies to freelancers, independent contractors, small business owners, landlords collecting rental income, and investors with significant capital gains or dividend income. Retirees whose pension withholding doesn’t fully cover their tax bill may also need to pay quarterly.
If you have a W-2 job but earn side income, you have a choice: you can either make quarterly estimated payments on the side income or increase the withholding at your regular job to cover the extra tax. Adjusting your W-4 at work is sometimes simpler if the side income is modest and predictable.
How Much to Pay Each Quarter
The simplest approach is to divide your expected annual tax liability by four and pay that amount each quarter. But the IRS also allows you to pay based on income actually earned during each period, which is called the annualized installment method. That option helps if your income is uneven, like a freelancer who earns most of their money in the second half of the year.
To avoid an underpayment penalty, you need to meet one of the IRS safe harbor thresholds. You’re in the clear if your total payments (estimated taxes plus any withholding) cover at least 90% of your current-year tax bill, or 100% of what you owed last year, whichever is less. If your adjusted gross income last year exceeded $150,000 ($75,000 if married filing separately), that 100% figure bumps up to 110% of last year’s tax. And if your return shows you owe less than $1,000 after withholding, no penalty applies regardless.
Many people find the prior-year safe harbor the easiest to use. You simply take last year’s total tax, divide by four, and pay that amount each quarter. Even if you end up earning significantly more this year, you won’t face a penalty as long as you hit that threshold.
How to Make the Payments
The IRS accepts estimated tax payments through several channels. IRS Direct Pay lets you pay online directly from a bank account at no cost. The Electronic Federal Tax Payment System (EFTPS) is another free option, though it requires enrollment a few days before your first payment. You can also pay by credit or debit card through IRS-approved processors, which charge a processing fee. Paper checks mailed with a Form 1040-ES voucher still work but take longer to process.
Each payment method timestamps differently. Online payments made by midnight Eastern time on the due date count as on time. Mailed payments need to be postmarked by the due date. If you’re cutting it close, an electronic payment is the safer bet.
State Estimated Taxes
Most states with an income tax also require estimated payments on a quarterly schedule. Many states follow the same four federal due dates, but some set their own calendar. Check your state’s tax agency website for the specific deadlines that apply to you, since missing a state payment carries its own penalties separate from the federal ones.
What Happens If You Miss a Deadline
The IRS charges an underpayment penalty calculated as interest on the amount you should have paid by each deadline. The penalty runs from the due date until the payment is received or until the annual return filing date, whichever comes first. The interest rate is set quarterly and ties to the federal short-term rate plus 3 percentage points. Even a partial payment by the deadline reduces the penalty, so sending something is better than sending nothing if cash is tight. You can calculate the penalty yourself using Form 2210, or let the IRS compute it when you file your annual return.