Quarterly tax payments go to the IRS four times a year if you're self-employed, a business owner, or earn income without withholding
A quarterly estimated tax payment is a payment you send directly to the IRS for income the IRS won't collect tax from automatically. If you're self-employed, own a business, receive rental income, or have investment income without withholding, the IRS expects you to pay tax four times a year instead of once at tax time. Each payment covers roughly one quarter of your expected annual tax bill.
The four payment dates are 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 by four. If you underpay or miss payments, the IRS charges interest and penalties starting immediately, so sending something on time is better than waiting to send the full amount late.
Key Takeaways
- Quarterly payments are due April 15, June 15, September 15, and January 15, and missing a deadline triggers interest and penalties even if you pay later.
- You calculate each payment by estimating your annual income and tax, then dividing by four, using IRS Form 1040-ES to work through the math.
- 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.
- If your income changes mid-year, you can recalculate and adjust your remaining payments instead of overpaying for the rest of the year.
- The IRS charges interest on underpayments starting the day after the payment was due, so even a few days late costs money.
Calculate your quarterly payment using Form 1040-ES
The IRS provides Form 1040-ES, Estimated Tax for Individuals, which walks you through calculating what you owe. You'll need to estimate your total income for the year, subtract deductions you expect to claim, and calculate the tax on that amount. The form includes worksheets and tax tables to do this.
Start by listing all income sources: self-employment income, rental income, capital gains, interest, dividends, and any W-2 wages. Subtract business expenses if you're self-employed, or the standard deduction if you take it. Then use the tax tables in the form to find your tax. Divide that total by four to get each quarterly payment.
If you're unsure about your income for the year, use last year's tax return as a starting point and adjust for changes you expect. If your income is uneven—say you earn more in summer—you can use the annualized income method in the form to pay more in high-income quarters and less in low ones, which can reduce penalties if you underpay overall.
Pay online through IRS Direct Pay or EFTPS
IRS Direct Pay is the fastest and most straightforward method. Go to irs.gov/payments, click Direct Pay, and enter your payment amount, the quarter you're paying for, and your bank account information. The payment posts within one business day and costs nothing. You'll get a confirmation number immediately.
EFTPS (Electronic Federal Tax Payment System) is the IRS's official payment network used by many businesses and accountants. You enroll at eftps.gov, then schedule payments up to 120 days in advance. EFTPS is free and lets you set up recurring payments if you want the same amount every quarter. Payments typically post within one business day.
Both methods require your Social Security number or EIN, your bank routing and account numbers, and the tax year and quarter you're paying for. If you make a mistake—wrong amount or wrong quarter—you can't reverse it online, but the IRS will credit the overpayment to your next payment or your tax return.
Mail a check with Form 1040-ES
If you prefer to pay by mail, print Form 1040-ES, fill in your payment voucher (the form includes one for each quarter), write a check, and mail it to the IRS address listed on the form. The address varies by state, so check the form before you mail.
Mail payments take longer to process—typically two to three weeks—so send it at least two weeks before the deadline to make sure it arrives on time. The IRS dates payments by the postmark, not the date received, so a check postmarked by April 15 counts as on-time even if it arrives April 20. Use certified mail or delivery confirmation if you want proof of mailing.
Pay by phone or through a payment processor
You can call the IRS at 1-800-829-1040 and pay by debit or credit card over the phone. The IRS doesn't charge a fee, but the payment processor they use may charge a small fee (usually $2 to $4). The payment posts the same day you call.
Third-party payment processors like PayPal, Square, and others also accept quarterly tax payments, though they charge their own fees. These are useful if you already use the processor for business payments, but they're more expensive than Direct Pay or EFTPS.
Adjust payments if your income changes during the year
If you earn significantly more or less than you estimated, you don't have to stick with your original four equal payments. You can recalculate after each quarter using the annualized income method on Form 1040-ES, which spreads your actual income across the months you earned it and calculates what you should have paid by each deadline.
For example, if you estimated $60,000 in income and paid $3,750 each quarter, but by June you've only earned $20,000, you can recalculate. The annualized method might show you owed only $2,000 by June 15, so your third and fourth payments can be higher to catch up. This reduces penalties if you underpaid early quarters.
Recalculate after each quarter if your income is unpredictable. The more often you adjust, the closer you stay to what you actually owe, which reduces interest and penalties.
What happens if you miss a payment or pay late
The IRS charges interest on any underpayment starting the day after the payment was due. The interest rate changes quarterly and is currently around 8 percent annually, but it compounds daily. You also face an underpayment penalty if you owe more than $1,000 at tax time and didn't pay enough throughout the year.
If you miss a deadline by a few days, send the payment immediately. The interest accrues from the due date, not the date you pay, so paying late still costs less than not paying at all. If you can't pay the full amount, send what you can—the IRS charges interest on the shortfall, but it's better than sending nothing.
If you expect to owe a lot at tax time and can't pay quarterly, you can sometimes reduce penalties by paying as much as you can each quarter, even if it's less than the calculated amount. The penalty is based on how much you underpaid and how long you underpaid it, so partial payments help.
Frequently Asked Questions
Do I have to make quarterly payments if I'm self-employed?
You must make quarterly payments if you expect to owe $1,000 or more in taxes for the year after subtracting withholding and credits. If you have a spouse with W-2 income and taxes are withheld from their paycheck, you might not need to pay quarterly on your self-employment income. Use Form 1040-ES to calculate whether you owe.
What if I pay too much in quarterly payments?
Any overpayment is credited to your next quarterly payment or refunded when you file your tax return. You can request a refund immediately if you've overpaid, but most people let it sit and use it to reduce their next payment or get it back as a refund at tax time.
Can I use my business credit card to pay quarterly taxes?
The IRS doesn't accept credit card payments directly through Direct Pay or EFTPS, but third-party payment processors do accept them—usually for a fee of 1.5 to 2 percent. For a $3,750 payment, that's $56 to $75 in fees, so it's usually cheaper to pay from your bank account.
What if the IRS sends me an underpayment notice after I file my return?
The notice will show how much you underpaid each quarter and the interest and penalty owed. You can pay it in full or set up a payment plan. If you believe the calculation is wrong, you can respond to the notice with your payment records and Form 1040-ES showing your calculation.
Do I need to make a January 15 payment if I'm filing my tax return by then?
Yes. The January 15 payment is for the fourth quarter of the previous year and is due even if you're filing your return for that year. You can file your return and make the payment on the same day, but both are due by January 15 (or the next business day if the 15th falls on a weekend).