Key takeaways
- Estimate your full-year tax, subtract withholding, divide by four to get each quarterly payment.
- 2025 due dates: April 15, June 16, September 15, and January 15, 2026.
- You generally must pay quarterly if you expect to owe $1,000 or more.
- The safe harbor (90% of this year or 100-110% of last year) avoids penalties.
How much should you pay in quarterly taxes?
Quarterly estimated taxes exist because contractors have no employer withholding, so the IRS expects you to pay as you earn. To size each payment, estimate your total federal tax for the year, which is self-employment tax (15.3 percent on 92.35 percent of net profit) plus income tax on what is left after the standard deduction. Subtract any tax already withheld, then divide the remainder by four. For many 1099 workers each payment lands near a quarter to a third of net profit. The calculator above gives you the exact figure and a payment schedule.
2025 quarterly tax due dates
The four federal deadlines for the 2025 tax year are:
- Q1: April 15, 2025 (income earned January through March)
- Q2: June 16, 2025 (April through May)
- Q3: September 15, 2025 (June through August)
- Q4: January 15, 2026 (September through December)
The periods are uneven on purpose, so the dates are not exactly three months apart. If a deadline falls on a weekend or federal holiday, it moves to the next business day.
Who has to pay quarterly estimated taxes?
You generally need to make estimated payments if you expect to owe $1,000 or morefor the year after subtracting withholding. That covers most freelancers, 1099 contractors, gig workers, and small business owners. If you also have a W-2 job, you can increase that job's withholding instead of making separate payments. People whose entire income is a W-2 with enough withheld usually do not owe estimates at all.
The safe-harbor rule (avoid penalties)
You will not owe an underpayment penalty as long as you pay the smaller of two amounts: 90 percent of this year's total tax, or 100 percent of last year's tax(110 percent if your prior-year adjusted gross income was over $150,000). Paying to last year's number is the simplest safe harbor, because you already know it. Even if your income jumps and you owe more at filing, hitting the safe harbor through the year keeps you penalty-free.
How to pay your quarterly taxes
The simplest method is IRS Direct Pay, which pulls from your bank account with no fee, or EFTPS for scheduled payments. You can also mail a check with a Form 1040-ES voucher. Set a calendar reminder a few days before each due date, and move your estimated tax into a separate savings account as you get paid so the money is always there. Do not forget state estimated payments if your state has an income tax.
Quarterly tax glossary
- Estimated taxes
- Quarterly prepayments of income and self-employment tax, since contractors have nothing withheld.
- Form 1040-ES
- The IRS form and vouchers used to calculate and submit estimated tax payments.
- Safe harbor
- Paying 90% of this year's tax or 100-110% of last year's to avoid an underpayment penalty.
- Underpayment penalty
- An interest-like charge the IRS applies when you pay too little, too late during the year.
- Net profit
- Income minus deductible business expenses. Your tax, and your payments, are based on this.
- Self-employment tax
- The 15.3% Social Security and Medicare tax on 92.35% of net profit.