Who Must Pay Estimated Taxes

Individuals (sole proprietors, single-member LLCs, partners, S-corp shareholders)

• You generally must make estimated payments if you expect to owe $1,000 or more in tax for the year after withholding and credits.
• “Safe harbor” rules: pay at least 90% of your current-year tax or 100% of last year’s total tax (or 110% if your prior-year AGI was above certain thresholds) to avoid underpayment penalties.

Corporations (C-corps)

• Must make estimated payments if expected to owe $500 or more for the year.
• Installments are generally due in the 4th, 6th, 9th, and 12th months of the tax year.

Quarterly Due Dates

For calendar-year individuals, estimated taxes are typically due four times per year; if a date falls on a weekend/holiday, it moves to the next business day.

How to Calculate Your Quarterly Payments

Option A: Prior-Year Safe Harbor (fast & simple)

1. Take your total tax from last year’s return.
2. Multiply by 100% (or 110% if you were over the AGI threshold).
3. Divide by 4 and pay that amount each quarter.

Option B: Current-Year Estimate (more accurate)

1. Estimate your current-year income, deductions, and credits.
2. Compute income tax + self-employment tax (15.3% on net SE earnings up to the Social Security cap, plus Medicare rules).
3. Subtract expected credits/withholding and divide the remainder into four installments.

Tools: IRS Form 1040-ES worksheets and Publication 505 walk through both methods.
For corporations, use the IRS estimated tax worksheet (see IRS corporate instructions) and quarterly schedule in the corporate section below.

How to Pay the IRS

1) IRS Direct Pay (bank account)

Free, fast, and no login required. Select “Estimated Tax” as the reason, choose the correct tax year, and save your confirmation.

2) EFTPS (Electronic Federal Tax Payment System)

Best for businesses and anyone scheduling multiple payments. Enrollment can take a few business days—don’t wait until the deadline.

3) Debit/Credit Card or Digital Wallet

Available via IRS-approved processors (fees apply). Useful as a fallback near deadlines.

What to keep

• Confirmation numbers or bank proofs for each payment
• A simple log (date, amount, quarter, confirmation) tied to your bookkeeping

Special Notes for Corporations

• Estimated payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year.
• Corporations generally must pay electronically (EFTPS) and may owe penalties for underpayment.
• See the IRS corporate instructions and tax calendar for worksheet methods and penalty rules.

What to Do After You Pay

Reconcile & adjust

Each quarter, compare year-to-date actuals vs. your plan and adjust the next payments up or down.

Bookkeeping hygiene

Keep a dedicated business account, log confirmations, and file receipts. Our
Expense Tracking guide makes this painless.

If cash is tight

Pay what you can by the deadline to minimize penalties/interest, then catch up. Don’t skip filing your annual return.

FAQ

Do I really need to pay quarterly if most income comes late in the year?

Yes—use the annualized income method in the IRS worksheets to match payments to when you actually earn income and reduce penalties.

What if I also have a W-2 job?

You can increase your W-2 withholding instead of sending separate estimated payments; just ensure your totals meet safe-harbor thresholds.

I formed an LLC—does that change my quarterly payments?

Single-member LLCs are usually taxed like sole proprietors by default. Multi-member LLCs and S-corps are pass-throughs: you may still owe individual estimates on your share.

State estimates?

Many states require quarterly payments too—check your state revenue department’s website.

Trusted Sources & Further Reading

• IRS — Estimated Tax (FAQs)
• IRS Publication 505 — Tax Withholding & Estimated Tax
• IRS Form 1040-ES (worksheets)
• IRS Direct Pay
• EFTPS (IRS overview)
• IRS — Pay by Card/Digital Wallet (fees apply)
• IRS Publication 509 — Tax Calendars (corporate schedules)

We keep guides current. See our Editorial & Research Standards.