The first quarterly estimated tax payment is due April 15 of the tax year, regardless of when you started earning self-employment or investment income

If you are self-employed, a freelancer, a gig worker, or you have significant investment income that isn't subject to withholding, the IRS expects you to pay taxes four times a year instead of once. These are called estimated quarterly tax payments, and they follow a fixed schedule set by the federal government. The first one always falls on April 15—the same day individual tax returns are due.

The other three payments are due June 15, September 15, and January 15 of the following year. If any of these dates falls on a weekend or federal holiday, the important date moves to the next business day. When April 15 is a Saturday, for example, your first payment is due Monday April 17. The IRS publishes the exact dates each year on its website.

You do not have to wait until April to start paying. Many people pay quarterly taxes monthly or even weekly to avoid a large bill in April. The IRS only requires that you meet the four important date dates; how you space payments between them is your choice.

Key Takeaways

  • The first quarterly estimated tax payment is due April 15 each year, and the other three are due June 15, September 15, and January 15.
  • You owe quarterly payments if you are self-employed, a contractor, a gig worker, or you have investment income not subject to withholding, and you expect to owe $1,000 or more in taxes for the year.
  • You can pay online through IRS Direct Pay, by phone, by mail, or through a tax professional, and the IRS charges no fee for Direct Pay.
  • If you miss a important date, you may owe a penalty and interest, but paying late is still better than not paying at all.
  • You can adjust your quarterly payment amount if your income changes during the year, and you do not have to pay the same amount each quarter.

Who actually owes quarterly tax payments

The IRS requires quarterly payments from people whose income is not subject to automatic withholding. This includes self-employed people, independent contractors, gig workers (Uber, DoorDash, Instacart), freelancers, and business owners. It also includes people with significant income from investments, rental properties, or side income that generates a 1099 form instead of a W-2.

You do not owe quarterly payments if your employer withholds taxes from your paycheck—that is what the W-4 form is for. You also do not owe them if your total expected tax liability for the year is less than $1,000. Some states have their own quarterly payment requirements separate from federal ones; check your state tax authority's website if you live outside the federal system.

If you are unsure whether you owe, the safest approach is to calculate your expected income for the year, subtract deductions you know about, and multiply by your tax bracket. If the result is $1,000 or more, you should plan to pay quarterly. A tax professional or accountant can give you a definitive answer based on your specific situation.

How much to pay each quarter

The amount you owe each quarter depends on your total expected income for the year, minus deductions, multiplied by your tax rate. The IRS Form 1040-ES walks you through the calculation step by step. Most people divide their expected annual tax bill by four and pay that amount each quarter, though you do not have to pay equally.

If your income is uneven—for example, you earn more in summer than winter—you can pay more in the quarters when you earn more and less in the quarters when you earn less. The IRS only cares that you pay enough by the end of the year to avoid a penalty. You can also adjust your payment amount if your income changes during the year; if you have a bad quarter, you can pay less the next quarter.

Many self-employed people overpay slightly during the year to avoid owing a large amount at tax time in April. This is a choice, not a requirement. You can also use tax software or a tax professional to calculate your quarterly payment, which often costs less than the penalty you would owe if you guessed wrong.

How to pay your first quarterly payment

The IRS offers several ways to pay. IRS Direct Pay is the fastest and costs nothing—you connect your bank account and authorize a payment online at irs.gov. The payment posts within one business day. You can also pay by phone by calling the IRS at 1-800-829-1040, or by mail by sending a check with Form 1040-ES to the address listed in the form instructions (the address varies by state).

Credit card and debit card payments are possible through third-party processors approved by the IRS, but these processors charge a fee—usually 1.87% to 2.35% of the payment amount. For a $2,500 quarterly payment, that fee would be $47 to $59. Unless you are earning credit card rewards that exceed the fee, paying by bank transfer through Direct Pay is almost always cheaper.

If you use a tax professional or accountant, they can submit your quarterly payment on your behalf. Some accounting software can also schedule payments automatically each quarter. Whatever method you choose, keep a record of the payment confirmation or check number for your records.

What happens if you miss the April 15 important date

If you do not pay by April 15, the IRS charges a failure-to-pay penalty and interest on the unpaid amount. The penalty is 0.5% of the unpaid tax per month, and interest compounds daily. The longer you wait, the more you owe. However, paying late is always better than not paying at all—the IRS prefers a late payment to no payment.

If you realize you will miss the important date, pay as soon as you can. The penalty and interest will be smaller the sooner you pay. You can also request a short extension if you have a legitimate reason—for example, a serious illness or a natural disaster—though the IRS does not grant extensions for straightforward oversight or cash flow problems.

If you consistently underpay throughout the year and owe a large amount at tax time, the IRS may also assess an underpayment penalty in addition to the failure-to-pay penalty. This is separate from the regular income tax you owe. The best way to avoid both penalties is to pay on time each quarter, even if the amount is not exact.

Adjusting your payments if your income changes

Your income may not be the same every quarter. If you earned $50,000 in the first quarter but expect to earn only $20,000 in the second quarter, you can pay less in the second quarter. The IRS does not require equal payments; it only requires that you pay enough by the end of the year to avoid an underpayment penalty.

To adjust your payment, recalculate your expected annual income using Form 1040-ES and divide by four. If the new number is lower than what you were paying, you can reduce your next quarterly payment. If your income is much higher than expected, you can increase your payment to avoid a large bill at tax time. You can change your payment amount as many times as you need during the year.

Some people use the annualized income method on Form 1040-ES, which lets you base each quarterly payment on only the income you earned up to that point in the year. This method works well if your income is very uneven—for example, if you earn most of your income in the fourth quarter. It requires more calculation but can save you money if you use it correctly.

State quarterly tax payments

Many states also require quarterly estimated tax payments from self-employed people and business owners. The state important date usually match the federal important date—April 15, June 15, September 15, and January 15—but some states use different dates. A few states do not have income tax at all, so you would owe nothing to the state.

Check your state tax authority's website to find out whether you owe state quarterly payments and what the important date are. Some states let you pay online through their website; others require a check by mail. The amount you owe to the state is separate from what you owe to the federal government, so you will need to calculate both.

If you live in a state with no income tax but earn income in a state that does have income tax, you may owe quarterly payments to that state. This is common for remote workers and people who do business across state lines. A tax professional can help you figure out which states you owe payments to.

Frequently Asked Questions

What if I did not know I was supposed to pay quarterly taxes?

You still owe the taxes, plus a penalty and interest. The IRS does not waive the penalty just because you were unaware of the requirement. However, if you can show reasonable cause—for example, that you are a first-time self-employed person and genuinely did not know—you can request that the IRS reduce or remove the penalty. Contact the IRS or work with a tax professional to request penalty relief.

Can I pay my quarterly taxes with a credit card?

Yes, but it costs money. Third-party processors approved by the IRS accept credit and debit cards, but they charge a fee of 1.87% to 2.35% of the payment. For most people, paying by bank transfer through IRS Direct Pay (which is free) is cheaper. Only use a credit card if you are earning rewards that exceed the fee.

Do I have to pay the same amount every quarter?

No. You can pay different amounts each quarter based on your actual or expected income. The IRS only requires that you pay enough by the end of the year to avoid an underpayment penalty. If your income is uneven, you can pay more in high-income quarters and less in low-income quarters.

What if my income drops and I cannot afford to pay in April?

Pay what you can as soon as you can. The penalty and interest will be smaller the sooner you pay. You can also adjust your remaining quarterly payments downward if your income has genuinely dropped. If you are in serious financial hardship, the IRS has payment plans and hardship programs, though these still require you to eventually pay what you owe.

Do I need to file a tax return if I pay quarterly taxes?

Yes. Quarterly payments are not a substitute for filing a tax return. You still file Form 1040 (and Schedule C if you are self-employed) by April 15 of the following year. The quarterly payments you made are credited against your total tax liability when you file.