If you’re self-employed, a freelancer, or a small business owner, paying estimated taxes is a necessary part of managing your finances.
Unlike W-2 employees who have taxes withheld from their paychecks, independent earners must pay their taxes in quarterly installments to avoid penalties and stay compliant with IRS rules.
The IRS sets specific due dates for these payments throughout the year, and missing them can result in penalties and interest charges. Understanding when payments are due, who needs to pay them, and how to calculate what you owe can help you avoid financial surprises at tax time.
In this guide, we’ll cover:
- The 2025 estimated tax due dates
- Who needs to pay quarterly taxes
- How to calculate and make payments
- What happens if you miss a deadline
- Updates to tax rules for 2025
Let’s break it all down.
When are the estimated tax due dates?
The IRS requires self-employed individuals, freelancers, and business owners to pay taxes in four quarterly installments. The due dates for 2025 are:
- First quarter (income earned from January 1 – March 31) → April 15, 2025
- Second quarter (income earned from April 1 – May 31) → June 16, 2025
- Third quarter (income earned from June 1 – August 31) → September 15, 2025
- Fourth quarter (income earned from September 1 – December 31) → January 15, 2026
Note: If you overpay your estimated taxes in early quarters, you can reduce your later payments instead of waiting for a refund when you file your return.
Can I pay estimated taxes all at once?
Yes, but it’s usually not recommended. While the IRS allows you to pay your full estimated tax liability at any time, most people pay quarterly to align with their actual earnings and expenses.
Here’s why spacing out your payments is a better idea:
- Cash flow management: Paying quarterly keeps your money available throughout the year.
- More accurate tax payments: Your income may fluctuate, and quarterly payments allow you to adjust your tax estimates as needed.
- Avoiding penalties: If you underpay early in the year and try to make up for it later, you could still face IRS penalties for late payments.
If your income is inconsistent, you can adjust each payment based on your actual earnings that quarter instead of using a fixed amount.
Who pays estimated tax?
You must pay estimated taxes if you expect to owe at least $1,000 in taxes when you file your return and your employer does not withhold enough to cover it.
This applies to:
- Self-employed individuals, freelancers, and gig workers
- Small business owners, sole proprietors, and independent contractors
- Investors with substantial capital gains or rental income
- High earners with insufficient withholdings from W-2 jobs
Exception: If at least 90% of your total tax liability is covered by withholdings from a job or other sources, you may not need to pay estimated taxes.
How do you pay quarterly taxes?
The IRS offers multiple ways to submit estimated tax payments:
- Online payments: Use IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS).
- Credit or debit card: Available through third-party IRS payment processors (note: additional fees may apply).
- Mailed check or money order: Send it with a completed Form 1040-ES voucher.
- IRS2Go app: A mobile option for quick payments.
Pro tip: If you want to automate your payments and avoid missing deadlines, consider setting up scheduled payments through EFTPS.
What happens if you don’t pay by the estimated tax due dates?
Missing a quarterly payment, or underpaying, can result in:
- Underpayment penalties: The IRS charges a failure-to-pay penalty if you don’t pay enough throughout the year.
- Interest charges: The IRS applies daily interest on unpaid tax balances, which increases over time.
- IRS notices: Repeated missed payments may trigger IRS warnings and audits.
How to avoid penalties:
- Pay at least 90% of your total tax bill throughout the year.
- Use the safe harbor rule: If you pay at least 100% of last year’s tax liability (or 110% if you earned over $150,000), you won’t face underpayment penalties.
What’s new for tax year 2025?
There are no major IRS changes announced yet for estimated tax payments in 2025. However, tax laws can change, so it’s always a good idea to check for updates before making payments.
Am I required to pay estimated taxes?
You must pay if:
- You expect to owe at least $1,000 in taxes after subtracting withholdings and credits.
- Your withholdings cover less than 90% of your tax bill.
- You are self-employed, a freelancer, or a small business owner without automatic tax withholdings.
You don’t need to pay estimated taxes if:
- You have enough withholdings from a W-2 job or other sources.
- Your total tax due at the end of the year is less than $1,000.
Pro tip: If you work both a W-2 job and have freelance income, you can increase your W-2 withholdings to reduce or eliminate the need for estimated payments.
How do I pay my estimated taxes?
To pay estimated taxes, follow these steps:
- Calculate your estimated tax: Use Form 1040-ES or consult a tax professional.
- Choose your payment method: Pay online, by mail, or through the IRS2Go app.
- Make payments on time: Stick to the quarterly deadlines to avoid penalties.
Pro tip: Invoice Fly’s invoice maker and reporting software can help track your income and expenses, making it easier to calculate and manage estimated taxes.
Stay on top of quarterly taxes and keep more of your earnings
Staying on top of estimated tax payments is essential for self-employed individuals, freelancers, and business owners. Missing payments can lead to IRS penalties and interest, but paying on time keeps you in good standing.
By understanding who needs to pay, how to calculate your estimated tax, and when payments are due, you can manage your tax obligations without stress.
Need help keeping track of your earnings and tax payments? Invoice Fly’s business tools make it easy to track income, calculate estimated taxes, and stay organized all year long.
Simplify your tax payments with Invoice Fly today.
Quarterly Taxes Due Dates FAQs
Yes, you can pay ahead of schedule, but most taxpayers choose to follow the quarterly estimated tax payments schedule to align with their federal income taxes. Paying quarterly allows you to manage your cash flow effectively and adjust payments based on income fluctuations.
If you overpay, the IRS gives you two options: apply the excess amount to next year’s estimated payments or request a refund when you file your tax return. If your tax rates change from the previous year, adjusting your payments can help prevent overpayment.
Yes, you can adjust your payments each quarter based on your actual income. If you receive income inconsistently, such as from freelancing or investments, you can recalculate your estimated tax for individuals to avoid underpayment.
Yes, quarterly estimated tax payments cover federal income taxes, self-employment tax, and any state and local tax obligations. Self-employed individuals must calculate both their income tax and self-employment tax, which includes contributions to Social Security and Medicare.
Yes, if you are married, you can file separately while making quarterly estimated tax payments. However, filing separately may impact your tax deduction eligibility and earned income tax credit qualification, so it's important to consider the tax implications before choosing this option.
Failing to make quarterly estimated tax payments can result in an estimated tax penalty.
The IRS may charge interest and penalties based on the unpaid amount.
To avoid this, make sure your total tax payments (including withholding and estimated payments) cover at least 90% of your total tax bill for the year or 100% of the previous year's tax liability.
The IRS requires estimated payments for types of income that are not subject to withholding. This includes:
- Self-employment income (freelance work, consulting, business profits)
- Rental income
- Investment earnings (dividends, interest, capital gains)
- Gig economy earnings (rideshare driving, contract work)
- Alimony received (if taxable)
If you receive income from these sources and expect to owe at least $1,000 in taxes, you must make quarterly estimated tax payments to avoid penalties.
