The first quarterly estimated tax payment is due April 15 of the year you owe taxes

If you're self-employed, a freelancer, a gig worker, or you have income that isn't subject to withholding, the IRS expects you to pay taxes four times a year instead of once. The first quarterly estimated tax payment covers January through March and is due on April 15—the same day as your regular tax return, though you file them separately.

The payment goes to the IRS directly, not to your state or local tax authority (though some states require their own quarterly payments on the same schedule). You can pay online through the IRS website, by mail, by phone, or through an authorized payment processor. The IRS accepts credit cards, debit cards, ACH transfers, and checks.

If April 15 falls on a weekend or federal holiday, the deadline shifts to the next business day. In 2024, April 15 was a Monday, so the deadline was April 15. In 2025, April 15 is a Tuesday. Check the IRS website or your tax software to confirm the exact date in your tax year.

Key Takeaways

  • The first quarterly estimated tax payment covers income from January through March and is due April 15 each year.
  • You owe quarterly payments if you're self-employed, a contractor, a gig worker, or have other income without automatic withholding, and you expect to owe $1,000 or more in taxes for the year.
  • You can pay the IRS online, by phone, by mail, or through an authorized payment processor using a credit card, debit card, or bank transfer.
  • Missing a quarterly payment triggers a penalty and interest charge, even if you pay the full amount when you file your annual return.

Who has to make quarterly tax payments

You're required to make quarterly estimated tax payments if you expect to owe $1,000 or more in federal income tax after accounting for any withholding or credits. This applies to self-employed people, independent contractors, gig workers, rental property owners, and anyone with investment income, capital gains, or other sources of income that don't have taxes automatically withheld.

If you're an employee with a W-2 job and your employer withholds taxes from your paycheck, you typically don't need to make quarterly payments—your withholding covers your tax liability. But if you have both W-2 income and self-employment income, or if your withholding is too low, you may need to make quarterly payments to cover the gap.

Married couples filing jointly can make joint quarterly payments or separate payments. If you file separately, each spouse makes their own quarterly payments based on their own income and withholding.

How to calculate what you owe for the first quarter

The IRS wants you to pay 25% of your total expected tax liability in each quarter. To calculate this, estimate your total income for the year, subtract deductions and credits, and multiply by your expected tax rate. Then divide by four to get the quarterly amount.

If you're new to self-employment or your income varies, use last year's tax return as a starting point. If you paid taxes last year and expect similar income this year, you can pay one-quarter of last year's total tax liability. This is called the safe harbor rule—if you pay this amount each quarter, you won't face an underpayment penalty even if your actual tax bill is higher, as long as you pay the remaining balance when you file your return.

Tax software, accountants, and the IRS Form 1040-ES worksheet can all help you estimate. The Form 1040-ES includes worksheets for calculating your estimated tax and comes with payment vouchers (though you don't need to mail the vouchers if you pay online).

How to submit your first quarterly payment to the IRS

The fastest and most secure way to pay is through the IRS Direct Pay system at irs.gov. You enter your Social Security number or EIN, bank account information, and the amount. The payment is free and posts within one business day. You receive a confirmation number immediately.

If you prefer to use a credit or debit card, you can pay through an IRS-authorized payment processor. The IRS does not charge a fee, but the processor does—typically 1.87% to 2% of the amount. Common processors include PayPal, Stripe, and Square. You can also pay by phone by calling the IRS at 1-800-829-1040.

If you mail a check, include Form 1040-ES voucher (the one for Q1) with your payment. Mail it to the address listed in the Form 1040-ES instructions for your state. Mailed payments take 7 to 10 business days to post, so send it early if you're close to the deadline.

What happens if you miss the April 15 deadline

If you don't 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 (or part of a month), and interest accrues daily at a rate set quarterly by the IRS. In 2024 and 2025, the rate is 8% per year.

You also face an underpayment penalty if your total quarterly payments fall short of what you should have paid. This penalty applies even if you pay the full amount when you file your annual return in April of the following year. The penalty is calculated based on the IRS's quarterly interest rate and the number of days the payment was late.

If you realize you've missed a payment, pay it as soon as possible. The sooner you pay, the less interest accrues. If you have a legitimate reason for the delay—illness, disaster, or other hardship—you can request a penalty waiver by filing Form 2210 with your tax return or by contacting the IRS directly.

The other three quarterly payment deadlines

After you pay the first quarter on April 15, the remaining three payments are due on June 15 (Q2), September 15 (Q3), and January 15 of the following year (Q4). Each payment covers three months of income and uses the same calculation method as the first quarter.

Many self-employed people set up automatic quarterly payments so they don't have to remember each deadline. You can schedule recurring ACH transfers through your bank or through IRS Direct Pay. This removes the risk of missing a deadline and spreading the tax burden evenly across the year.

If your income changes significantly during the year, you can adjust your quarterly payments. Recalculate your estimated tax and pay more or less in the remaining quarters. This prevents overpaying early in the year and underpaying later, or vice versa.

Frequently Asked Questions

What if I don't know my income yet on April 15?

Estimate conservatively based on what you've earned so far and what you expect for the rest of the year. You can always adjust in later quarters if your income changes. Paying a little extra early is safer than underpaying and facing penalties.

Can I pay all four quarters at once instead of spreading them out?

Yes, you can pay your entire annual estimated tax in one lump sum on April 15 if you prefer. The IRS doesn't require you to split payments across the four quarters, though spreading them out can ease cash flow. If you pay early, you may be may have access to to interest on the overpayment.

Do I need to make quarterly payments if I'm incorporated as an S-corp or LLC?

It depends on how your business is taxed. If your business is taxed as a sole proprietorship or partnership, you make quarterly estimated tax payments as an individual. If you're taxed as a corporation, your business may make quarterly payments, or you may take distributions and make personal quarterly payments. Consult a tax professional for your specific structure.

What if I overpay my quarterly taxes?

Any overpayment is credited toward your next quarterly payment or refunded when you file your annual return. You can also request a refund of overpayments during the year by filing Form 1040-ES, though most people wait until tax time to reconcile.

Is there a penalty if I pay late but before I file my annual return?

Yes. The failure-to-pay penalty and underpayment penalty apply as soon as the deadline passes, regardless of when you eventually pay or file your return. Paying late reduces the penalty but does not eliminate it.