How to Pay Quarterly Taxes: Complete Guide for 2025
If you're self-employed, the IRS expects you to pay taxes throughout the year, not just in April. Quarterly estimated tax payments cover both your self-employment tax and your income tax. Missing these payments triggers penalties, even if you pay your full tax bill by the April 15 deadline.
When Are Quarterly Taxes Due?
For 2025 income, quarterly estimated taxes are due on these dates:
- Q1: April 15, 2026 (covers January 1 – March 31)
- Q2: June 16, 2026 (covers April 1 – May 31)
- Q3: September 15, 2026 (covers June 1 – August 31)
- Q4: January 15, 2027 (covers September 1 – December 31)
Notice that Q2 only covers two months, Q3 covers three months, and Q4 covers four months. This is an IRS quirk, not a mistake. Source: IRS Publication 505
How Much Should You Pay?
You need to pay enough to avoid the underpayment penalty. The IRS gives you two safe harbor options:
- Pay 100% of last year's total tax liability (110% if your adjusted gross income was over $150,000)
- Pay 90% of this year's expected tax liability
Whichever amount is lower protects you from penalties. If your income varies throughout the year, you can use the annualized income method to adjust payments based on when you actually earn the money.
How to Make a Payment
The easiest way to pay quarterly taxes is through IRS Direct Pay. It's free, instant, and you get immediate confirmation. No account signup required.
Other payment methods:
- EFTPS (Electronic Federal Tax Payment System): Free, but requires account setup
- Credit or debit card: Convenient, but payment processors charge a fee (around 2%)
- Mail Form 1040-ES with a check: Old-school method, takes longer to process
From Our Practice
The most common mistake we see in Northern Virginia: people wait until April to pay all four quarters at once. The IRS doesn't care that you paid the full amount, they care when you paid it. Missing the quarterly deadlines triggers underpayment penalties calculated month by month, not just a flat fee.
The second most common mistake: paying exactly 25% each quarter when income isn't evenly distributed. If you earn 80% of your annual income in Q4 (common for retail businesses), paying equal amounts all year means you've underpaid for three quarters and still owe a penalty.
What Happens If You Miss a Payment?
The IRS charges an underpayment penalty based on the federal short-term rate plus 3 percentage points. For 2025, that's approximately 8% annualized. The penalty is calculated from the due date of each payment through the earlier of the actual payment date or April 15.
If you miss a quarterly payment, pay it as soon as you realize. The penalty accrues daily, so catching it early saves money.
Use Our Calculator
Calculate your quarterly payments with our free Quarterly Tax Calculator. Enter your expected income and it will show you exactly how much to pay and when.