Taxes in the US are “pay-as-you-go”. That is, the government is relying on you to pay taxes on what you’re earning during the year and not wait until Tax Day.
For most employees, taxes are withheld from their paycheck according to their Form W-4. Retirees can even have taxes withheld from Social Security benefits or pension plan payments.
What if you’re self-employed or earning money on which taxes aren’t withheld automatically—dividends, interest, capital gains, rental income, or alimony? Then you must pay estimated tax to the IRS.
These are also called quarterly taxes, even though they’re not necessarily three-month intervals.
What are estimated tax payments?
Estimated tax payments are simply money you pay ahead of time throughout the year to the IRS for income that’s not being withheld on an ongoing basis. You’re trying not to owe a large amount when it comes time to pay taxes—and not owe penalties for not paying enough.
Most taxpayers pay four payments, one each quarter, according to the IRS schedule. You calculate and report your payments on Form 1040-ES.
2025 estimated tax payment schedule
The 2025 IRS estimated payment schedule is as follows:
| Payment | Income Earned | Due Date |
| ———– | ———————– | ————– |
| Quarter | Dates | Deadline |
| — | — | — |
| 1st Quarter | Jan. 1 – Mar. 31, 2025 | April 15, 2025 |
| 2nd Quarter | Apr. 1 – May 31, 2025 | June 16, 2025 |
| 3rd Quarter | June 1 – Aug. 31, 2025 | Sept. 15, 2025 |
| 4th Quarter | Sept. 1 – Dec. 31, 2025 | Jan. 15, 2026 |
The fourth 2025 estimated tax payment is due January 15, 2026, for income earned between September 1 and December 31, 2025.
Certain IRS rules or residence in disaster areas can qualify some taxpayers for exceptions, but otherwise, these dates will apply to most people in general.
Who has to make estimated tax payments?
You’ll only need to make payments if you have taxable non-withholding income. That can be:
Self-employment income
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Dividends, interest, or capital gains
Rents from real property
Alimony
Unemployment or other retirement benefits
If you get most of your income from farming or fishing and are receiving more than two-thirds of your income from them, you might be able to pay just once for the year on January 15 of the following year.
Read this later: IRS deadline day – don’t miss these crucial actions before 15 October.
How to calculate estimated taxes
To compute your estimated taxes, fill out Form 1040-ES
1. Project your adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year.
2. Apply the worksheet provided with Form 1040-ES to compute each payment.
3. Refer to the prior year’s tax return if necessary.
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You may revise your estimated payments at any time if your income has fluctuated or changes in tax law have influenced your liability.
Making payments
You can pay by any of the following:
- Check, money order, or cash with Form 1040-ES
- Credit or debit card
- Electronically through the Electronic Federal Tax Payment System (EFTPS)
- See instructions on Form 1040-ES for choosing the one most convenient for you.
- Penalty for Late or Missed Payments
Underpaying your taxes during the year can trigger IRS penalties even if you receive a refund upon filing. Exceptions do exist, but are unusual:
Casualty or disaster
Being over 62, retired, or recently disabled with reasonable cause for underpayment
Because exceptions are uncommon, it’s a good rule of thumb to pay most of your tax liability in withholding or estimated payments.
Don’t forget state taxes
If you reside in a state that imposes a personal income tax, you may have to make estimated payments to the state as well. Check your state tax agency deadlines, as they may differ from the IRS deadline schedule.
Bottom line
For all the taxpayers, the last 2025 estimated tax payment is due on January 15, 2026. Prepayment saves penalty and simplifies your tax planning. Utilising Form 1040-ES, with the proviso of the IRS schedule, and allowing for the adjustment in income makes the task a simple and easy one.
Read this later: The map showing the states where IRS tax returns could change in 2026 – Check if yours is on the list.
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