Quarterly tax payments go directly to the IRS or your state tax agency, not through an employer

A quarterly tax payment is a lump sum you send to the IRS (or your state) four times a year if you owe taxes that won't be withheld from a paycheck. This happens most often if you're self-employed, have investment income, or receive income without automatic withholding. The IRS calls these estimated tax payments, and they're due on specific dates: April 15, June 15, September 15, and January 15 of the following year.

You calculate what you owe based on your expected income for the year, then divide it into four parts. The IRS doesn't send you a bill—you initiate the payment yourself using one of several methods. If you don't pay enough across all four quarters, you may owe a penalty when you file your annual return, even if you're getting a refund overall.

Key Takeaways

  • Quarterly payments are due April 15, June 15, September 15, and January 15, with a few days of grace depending on weekends and holidays.
  • You can pay online through IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS), by mail with Form 1040-ES, or by phone and credit card through an IRS-approved payment processor.
  • Your payment amount should cover your expected tax liability for the year minus any tax already withheld from other income sources.
  • Missing a payment or underpaying triggers a penalty calculated from the due date, so paying something on time is better than paying everything late.
  • State quarterly payments follow the same schedule as federal payments in most states, but some states have different due dates or don't require them at all.

Calculate your quarterly payment amount before you pay

Start with your expected income for the full year—wages, self-employment income, rental income, investment gains, or anything else taxable. Subtract any deductions you're may have access to to (standard deduction, business expenses, capital losses up to $3,000). Multiply what's left by your tax rate, which depends on your filing status and income level. The IRS publishes tax rate tables each year in the Form 1040-ES instructions.

Then subtract any tax that will be withheld from other sources during the year. If you have a W-2 job and your employer withholds federal income tax, that counts. Subtract that amount from your total expected tax, then divide the remainder by four to get each quarterly payment.

If you're unsure of your income for the year—common if you're self-employed or your income varies—use last year's tax return as a starting point and adjust upward or downward based on what you expect to earn. You can also use the safe harbor rule: if you pay 100% of last year's tax liability (or 110% if your adjusted gross income was over $150,000), you won't owe a penalty even if your actual tax is higher. This gives you a floor to work from.

Pay online through IRS Direct Pay or EFTPS

The fastest and most reliable method is IRS Direct Pay, which is free and available at irs.gov. You enter your Social Security number or employer identification number, the payment amount, and the due date. The IRS lets you schedule the payment for a future date, so you can set it up weeks in advance. The money comes directly from your bank account on the date you choose.

The Electronic Federal Tax Payment System (EFTPS) is another free option run by the U.S. Department of the Treasury. You enroll once at eftps.gov, then log in to make payments. EFTPS requires you to set up an account and wait for a PIN in the mail, so it takes longer to get your free guide than Direct Pay, but it works the same way once you're set up.

Both methods give you a confirmation number when ready. Write it down or save the email confirmation. The payment typically clears within one to three business days, though the IRS considers it paid on the date you schedule it, not the date it clears your bank.

Mail a check with Form 1040-ES if you prefer paper

If you don't want to pay online, you can mail a check to the IRS along with the payment voucher from Form 1040-ES (Estimated Tax Worksheet for Individuals). The form is free and available at irs.gov. You fill in your name, address, Social Security number, the tax year, the quarter you're paying for, and the payment amount. Tear off the voucher and mail it with your check.

The address where you mail it depends on your state. Form 1040-ES includes a list of mailing addresses by state. Mail it at least one week before the due date to make sure it arrives on time. The IRS considers the payment made on the date of the postmark, not the date they receive it, so a postmark before the due date counts as on-time even if it arrives late.

Write your Social Security number and "2024 Q2" (or whichever quarter) on the check itself. This helps the IRS match the payment to your account if the voucher gets separated from the check.

Pay by phone or credit card through an IRS-approved processor

You can pay by phone using a debit card or bank account through an IRS-approved payment processor. The IRS website lists the current processors—they change occasionally, so check irs.gov for the current list. These processors charge a fee (usually $2 to $4 for bank account payments, higher for credit cards), which you pay in addition to your tax payment.

Credit card payments also go through approved processors and carry a fee. The processor charges the fee, not the IRS, and it's not tax-deductible. If you're paying a large amount, the fee can add up, so compare it to the cost of paying online for free through Direct Pay or EFTPS.

Phone payments are useful if you're close to a important date and don't have time to set up an online account, but they're slower and more expensive than Direct Pay. Use them as a backup, not your first choice.

State quarterly payments follow federal due dates in most states

Most states that have an income tax require quarterly payments on the same schedule as the federal government: April 15, June 15, September 15, and January 15. You typically pay your state directly through your state's tax agency website, which works similarly to IRS Direct Pay.

A few states have different due dates or different rules. Some states don't require quarterly payments at all if your income is below a certain threshold. Check your state's tax agency website to confirm the due date and payment method for your state. If you're unsure whether your state requires quarterly payments, contact the state tax agency directly—they can tell you in one call.

Some states allow you to pay federal and state taxes together through a single payment processor, while others require separate payments. The state website will specify which method applies to you.

What happens if you miss a payment or pay late

The IRS charges a underpayment penalty if you don't pay enough across all four quarters. The penalty is calculated from the due date of each missed or short payment, so paying late costs more than paying on time. However, if you pay something by the due date, even if it's less than you owe, the penalty applies only to the shortfall, not the full amount.

If you realize you've underpaid after the year ends, you can still pay the remaining balance when you file your tax return. The IRS will calculate the penalty based on how much you owed and how late you were. The penalty is usually a few percent of the unpaid amount, but it adds up if you're significantly underpaid.

If you miss a payment entirely, make it up as soon as you realize it. The sooner you pay, the smaller the penalty. You don't need to file anything special—just send the payment with a note explaining which quarter it covers, and the IRS will explore it to your account.

Adjust your payments if your income changes during the year

Quarterly payments are estimates, so if your income changes significantly, you can adjust future payments. If you earn less than expected, you can reduce your next payment. If you earn more, you can increase it. There's no penalty for adjusting—the IRS only penalizes underpayment based on what you actually owed, not what you estimated.

You don't need to notify the IRS of the change. Just calculate your new expected income, recalculate your tax liability, and adjust the remaining quarterly payments accordingly. If you're unsure whether your new estimate is reasonable, use the safe harbor rule again: pay 100% of last year's tax liability (or 110% if your income was over $150,000) and you won't owe a penalty.

Frequently Asked Questions

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

The IRS moves the due date to the next business day. For example, if June 15 falls on a Saturday, the due date becomes Monday, June 17. Check the IRS website or your payment processor to confirm the actual due date each quarter, as it varies by year.

Can I pay all four quarters at once instead of four separate payments?

Yes. You can pay your entire estimated tax for the year in one lump sum, though the IRS still considers it divided into four quarterly payments for penalty purposes. If you pay everything on April 15, the IRS treats the January 15 portion as if it were paid on time, even though you paid it early. This can reduce or eliminate penalties if you're underpaying.

Do I need to make quarterly payments if I'm self-employed but my income is very low?

Generally, you need to make quarterly payments if you expect to owe $1,000 or more in federal income tax for the year after accounting for any withholding. If your expected tax is less than $1,000, you can skip quarterly payments and pay the full amount when you file your return. Check the Form 1040-ES instructions for the exact threshold, as it can change year to year.

What if I pay too much in quarterly payments?

You'll get a refund when you file your tax return. You can also request a refund during the year if you've overpaid significantly, though most people wait until they file. The refund is applied to any other taxes you owe, or sent to you directly if you have no other tax debt.

Do I need to make quarterly payments if I have a W-2 job and my employer withholds taxes?

Only if your total tax liability (from all sources) exceeds what your employer is withholding. If you have self-employment income or investment income on top of your W-2 job, you may owe quarterly payments on the additional income. Use Form 1040-ES to calculate whether you need to pay.