Everything You Need to Know About Quarterly Taxes
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.
Who Needs to Pay Quarterly Taxes?
You need to make quarterly payments if:
- You expect to owe $1,000 or more in taxes for the year
- Your withholding and credits won't cover at least 90% of this year's tax or 100% of last year's tax
Source: IRS Publication 505
How Much Should You Pay?
The safe harbor rule: pay either 100% of last year's total tax liability (110% if your AGI was over $150,000) or 90% of this year's expected tax. Whichever 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.
Payment Deadlines for 2025 Income
- April 15, 2026: Q1 payment (January 1 – March 31 income)
- June 16, 2026: Q2 payment (April 1 – May 31 income)
- September 15, 2026: Q3 payment (June 1 – August 31 income)
- January 15, 2027: Q4 payment (September 1 – December 31 income)
Note the asymmetry: Q2 only covers two months, Q3 covers three months, and Q4 covers four months. This is an IRS quirk, not a mistake.
How to Pay
The easiest method: IRS Direct Pay at directpay.irs.gov. It's free, instant, and you get immediate confirmation.
Other options: EFTPS (Electronic Federal Tax Payment System), credit card (with fees), or mail Form 1040-ES with a check.
Complete guide: How to Pay Quarterly Taxes