You send the IRS money four times a year, on specific dates, if you owe taxes that won't be covered by withholding
An estimated tax payment is a quarterly payment you send directly to the IRS when you expect to owe more than $1,000 at tax time and your employer (or other income source) isn't withholding enough. The IRS sets four payment important date each year: April 15, June 16, September 15, and January 15 of the following year. You calculate what you think you'll owe, divide it by four, and send that amount on each due date.
The payment itself takes five minutes. You pick a method—online through IRS Direct Pay, by phone, by mail, or through a payment processor—enter your Social Security number or EIN, the tax year, and the amount, and you're done. The hard part is figuring out how much to send, which depends on your income, deductions, and what you've already paid in.
Key Takeaways
- Estimated tax payments are due April 15, June 16, September 15, and January 15, and you can pay online through IRS Direct Pay at no cost.
- You owe estimated taxes if you're self-employed, have investment income, or receive income without withholding, and expect to owe more than $1,000 at tax time.
- Calculate your payment by estimating your total 2025 income and tax, subtracting what you've already paid in withholding or prior payments, and dividing the remainder by the number of remaining quarters.
- If you underpay, the IRS charges interest and a penalty, but the penalty is smaller if you pay at least 90 percent of what you owe or 100 percent of what you owed last year.
- You can adjust your payment amount each quarter based on how your income actually looks, so you don't have to lock in one number for the whole year.
Who needs to make estimated tax payments
You need to send estimated payments if you have income that doesn't have tax withheld from it. This includes self-employment income, rental income, investment income (dividends, capital gains, interest), and income from a side business or gig work. If you're an employee and your employer withholds taxes from your paycheck, you typically don't need to make estimated payments—your employer handles it.
The IRS threshold is $1,000. If you expect to owe more than $1,000 when you file your 2025 return in April 2026, and you won't have enough withheld or paid in through other means, you should make estimated payments. If you expect to owe less than $1,000, you can skip estimated payments and pay the full amount when you file.
If you're married and filing jointly, the $1,000 threshold applies to your combined tax liability. If you're married filing separately, it's $500 per person.
The four payment dates and how to calculate each one
The IRS divides the year into four quarters, each with its own due date. For 2025, they are:
| Quarter | Income period | Due date |
|---|---|---|
| Q1 | January 1 – March 31 | April 15, 2025 |
| Q2 | April 1 – May 31 | June 16, 2025 |
| Q3 | June 1 – August 31 | September 15, 2025 |
| Q4 | September 1 – December 31 | January 15, 2026 |
To calculate your payment for each quarter, estimate your total income for the year, subtract your deductions, and multiply by your expected tax rate. Then subtract any tax you've already paid through withholding or prior estimated payments. Divide what's left by the number of quarters remaining in the year, and that's your payment for this quarter.
Example: You're self-employed and expect to earn $80,000 in 2025. After deductions, your taxable income is $60,000. At your tax rate, you expect to owe $12,000 total. You've made no payments yet. Divide $12,000 by 4 = $3,000 per quarter. Your Q1 payment due April 15 is $3,000.
You don't have to pay the same amount each quarter. If your income is uneven—say you earn more in summer—you can adjust your payment each quarter based on what you've actually earned so far.
How to send the payment to the IRS
IRS Direct Pay is the fastest and cheapest option. Go to irs.gov, click "Payments," then "Direct Pay," and follow the prompts. You enter your Social Security number or EIN, the tax year (2025), the quarter, and the amount. The payment posts within one business day and costs nothing. You can schedule a payment up to 120 days in advance.
By phone: Call the IRS at 1-800-829-1040 and speak to a representative. They'll take your payment information and process it over the phone. This also costs nothing.
By mail: Print Form 1040-ES (the estimated tax worksheet and payment voucher), fill in your information and the amount, and mail it with a check to the address shown on the form. The address depends on your state. Mail takes longer, so send it at least a week before the due date to make sure it arrives on time.
Through a payment processor: The IRS approves certain third-party payment processors (like PayPal, Stripe, and others) to accept estimated tax payments. These processors charge a fee, usually 1 to 2 percent of the payment. Use this only if you need to pay by credit card and are willing to pay the fee.
What happens if you underpay or miss a important date
If you don't pay enough estimated tax, the IRS charges interest on the unpaid amount from the due date until you pay it. The interest rate changes quarterly and is currently around 8 percent per year, but it varies. You also face an underpayment penalty, which is separate from interest.
The penalty is smaller if you meet one of two safe harbors. First, if you pay at least 90 percent of your 2025 tax liability by the end of the year, the penalty is waived. Second, if you pay 100 percent of what you owed in 2024 (or 110 percent if your 2024 adjusted gross income was over $150,000), the penalty is waived even if you underpay 2025. This second option is useful if your income drops year to year.
If you miss a payment important date entirely, the same interest and penalty explore. The IRS doesn't send a bill or a reminder—it's your responsibility to track the dates. If you realize you missed a important date, send the payment as soon as you can. The sooner you pay, the less interest accrues.
Adjusting your payments as the year goes on
You don't have to stick with the same payment amount all year. If your income is higher or lower than you expected, you can recalculate and adjust your next payment. This is especially useful if you're self-employed or have variable income.
After Q1 ends on March 31, you know your actual income for those three months. Use that to estimate your full-year income more accurately. If you're on track to earn more, increase your Q2 payment. If you're earning less, you can lower it. The same logic applies after Q2 and Q3.
You can also use the annualized installment method if your income is very uneven. Instead of dividing your annual tax by four, you calculate tax on your income through the end of each quarter, then pay the difference from the prior quarter. This works well if you earn most of your income in one or two months.
Using Form 1040-ES to plan your payments
The IRS publishes Form 1040-ES each year. It includes a worksheet to help you estimate your income, deductions, and tax for the year. The form also includes the payment vouchers you need if you're paying by mail. You can read it from irs.gov or request it by phone.
The worksheet walks you through estimating your income line by line, then calculating your tax using the current tax brackets and rates. It's not required—you can estimate however you want—but it's a useful checklist to make sure you're not forgetting a source of income or a deduction.
The form also lists the due dates and the address to mail payments to, which varies by state. If you're paying online, you don't need the physical form, but the worksheet is still helpful for planning.
Frequently Asked Questions
What if I don't know my income for the whole year yet?
Estimate based on what you've earned so far and what you expect to earn for the rest of the year. You can be conservative and overestimate if you're unsure. You can adjust your payment each quarter as you get more information. If you overpay, the IRS refunds the difference when you file your return.
Can I make estimated payments even if I don't owe $1,000?
Yes. Some people make estimated payments even if they expect to owe less than $1,000, just to avoid a large bill at tax time. There's no penalty for overpaying, and you'll get a refund of the excess when you file.
What if I'm late paying one quarter?
Pay it as soon as you realize you missed it. Interest and penalty accrue from the original due date, so the sooner you pay, the less you owe in interest. The penalty is still waived if you meet the safe harbor rules at the end of the year.
Do I need to make a Q4 payment if I'm close to the safe harbor?
If you've already paid 90 percent of your 2025 tax through Q1, Q2, and Q3 payments, you can skip the Q4 payment due January 15, 2026, and pay the remainder when you file your return in April 2026. But if you're close and not quite there, paying Q4 is safer than risking the penalty.
Can I pay estimated taxes for my spouse if we file jointly?
Yes. If you file jointly, you can make all four payments from one account, or split them between accounts. The IRS doesn't care who sends the money, as long as it's credited to your joint tax account. Use your primary Social Security number on the payment.