The Four Quarterly Payment Deadlines

The IRS sets four fixed dates each year when you must send estimated tax payments. These dates do not change year to year, though the actual due date shifts slightly depending on weekends and federal holidays. The four quarters run January through December, and payments are due on the 15th of April, June, September, and January of the following year.

If the 15th falls on a Saturday, Sunday, or federal holiday, the deadline moves to the next business day. For example, if April 15 is a Saturday, your payment is due Monday, April 17. The IRS publishes the exact dates each year on its website and in Publication 505, which you can download free.

You send payments directly to the IRS using one of three methods: the Electronic Federal Tax Payment System (EFTPS), a credit or debit card through an approved payment processor, or by mail with Form 1040-ES. EFTPS is free and allows you to schedule payments in advance; credit card payments charge a processing fee of roughly 2 percent.

Key Takeaways

  • Estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year, though the exact date shifts if it lands on a weekend or holiday.
  • You calculate what you owe by estimating your total income, deductions, and credits for the year, then dividing by four — or using the prior-year safe harbor method if your income is uneven.
  • Self-employed people, freelancers, investors, and anyone with income not subject to withholding must pay estimated taxes or face penalties and interest.
  • EFTPS is the fastest and cheapest way to pay; you can set up recurring payments so you do not have to remember each deadline.
  • If you miss a deadline, send the payment as soon as you can — the IRS will calculate penalties based on how late you were and how much you owed.

Who Must Pay Estimated Taxes

You must pay estimated taxes if you expect to owe $1,000 or more when you file your tax return and you do not have enough tax withheld from paychecks or other income. This applies to self-employed people, freelancers, contractors, business owners, investors, and anyone with rental income, capital gains, or other income sources that do not have automatic withholding.

If you are an employee with a W-2 job, your employer withholds federal tax from each paycheck, so you usually do not need to pay estimated taxes. However, if you have a second job, side income, or investment earnings on top of your W-2 income, you may need to pay estimated taxes on the additional amount.

Married couples filing jointly can make joint estimated payments or split them between spouses. If you are married filing separately, you and your spouse each pay on your own income. If your income changes significantly during the year, you can adjust your remaining payments — you do not have to pay the same amount each quarter.

How to Calculate What You Owe Each Quarter

The standard method is to estimate your total income, deductions, and tax credits for the year, calculate your expected tax liability, and divide by four. You can use Form 1040-ES, which includes a worksheet that walks you through the calculation step by step. The form is free and available on the IRS website.

If your income is uneven — for example, you earn more in some months than others — you can use the prior-year safe harbor method. This means you pay one-quarter of either your prior-year tax liability or 90 percent of your current-year tax liability, whichever is smaller. This method protects you from underpayment penalties even if your current-year income is higher, as long as you pay the full amount by the final deadline.

If you underpay, the IRS charges interest and a penalty based on how much you owed and how late you were. If you overpay, you receive a refund or can carry the credit forward to next year. Many people round up their estimate to avoid penalties; paying a little extra is safer than paying too little.

Setting Up Automatic Payments Through EFTPS

EFTPS is a free service run by the U.S. Department of the Treasury that lets you pay taxes electronically and schedule payments weeks in advance. You enroll once online at eftps.gov, provide your Social Security number or employer identification number, and your bank account details. After enrollment, you can log in anytime to schedule a payment for any future date.

The advantage of EFTPS is that you can set up all four quarterly payments at once, and the system will send them on the dates you choose. You can also change or cancel a payment up to two business days before it is due. Payments typically post to the IRS within one business day of the scheduled date.

If you prefer not to use EFTPS, you can pay by credit or debit card through an approved payment processor — the IRS website lists the current processors. These services charge a fee (usually 1.87 to 2.35 percent of the payment amount) that you pay to the processor, not the IRS. You can also mail a check with Form 1040-ES, though mail payments take longer to reach the IRS and are riskier if lost.

What Happens If You Miss a Deadline

If you miss a quarterly deadline, send the payment as soon as you realize it. The IRS charges interest on late payments starting from the original due date, calculated daily at a rate set each quarter (typically 8 percent annually, though it varies). You also face an underpayment penalty, which is separate from interest and is calculated based on how much you owed and how late you were.

The penalty is waived in certain situations: if your income was uneven and you used the annualized installment method, if you had no tax liability the prior year, if you are a farmer or fisherman, or if you can show reasonable cause for the late payment. You do not have to contact the IRS to request a waiver — the agency calculates penalties automatically when you file your return, and if you may have access to for relief, it applies it then.

If you realize partway through the year that you will owe more than you estimated, adjust your remaining quarterly payments upward. You can also make a lump-sum payment in December to cover the shortfall. The key is to pay something by each deadline rather than waiting until April to pay the full year's amount.

Adjusting Payments If Your Income Changes

You do not have to pay the same amount each quarter. If your income drops, you can lower your remaining payments. If your income rises, you can increase them. To adjust, recalculate your annual income estimate and divide the remaining tax liability by the number of quarters left in the year.

For example, if you paid $2,500 per quarter but your income dropped after June, you could recalculate your full-year tax and pay less in September and December. Conversely, if you earned a large bonus in October, you could make a larger payment in December to avoid underpayment penalties.

Keep records of what you paid each quarter and when. When you file your tax return in April, you will report all four payments on Form 1040, and the IRS will credit them against your total tax liability. If you overpaid, you receive a refund; if you underpaid, you owe the difference.

Frequently Asked Questions

What if I cannot pay the full amount by the deadline?

Pay whatever you can by the deadline. Interest and penalties apply only to the unpaid balance, so partial payments reduce what you owe. You can also set up a payment plan with the IRS after you file your return if you still owe money in April.

Do I need to pay estimated taxes if I have a loss in my business?

No. If your business has a loss or your total income is below the threshold where you owe tax, you do not need to pay estimated taxes. However, if you have other income (such as a W-2 job or investments) that does generate tax, you still owe estimated taxes on that portion.

Can I pay estimated taxes monthly instead of quarterly?

The IRS requires quarterly payments on the four fixed dates. You cannot split a quarterly payment into monthly installments. However, you can make extra payments in months between the deadlines, and they will be credited toward your next quarterly obligation.

What if I am self-employed and my spouse has a W-2 job?

You pay estimated taxes only on your self-employment income. Your spouse's employer withholds tax from their paychecks. If the withholding from your spouse's job is not enough to cover both of your household's tax liability, you may need to increase the withholding on their W-4 instead of paying estimated taxes.

How do I know if the IRS received my payment?

If you use EFTPS, you receive a confirmation number immediately. If you pay by credit card, the processor gives you a confirmation. If you mail a check, allow two to three weeks for it to post. You can check the status of a payment on the IRS website using your Social Security number and the payment date.