Quarterly Estimated Taxes 2025 — How to Calculate and Pay
2025 IRS data — updated for current tax year
Who Must Pay Estimated Taxes
You generally must make quarterly payments if you expect to owe at least $1,000 in federal taxes for the year and your withholding won't cover at least 90% of your current-year tax or 100% of last year's tax (110% if AGI exceeded $150,000).
How to Calculate Each Payment
The simplest safe-harbor method: pay 25% of last year's total tax liability each quarter. If your 2024 federal tax was $12,000, pay $3,000 per quarter in 2025. Alternatively, estimate your 2025 income, calculate the expected tax, and divide by four.
How to Pay
Pay online at IRS Direct Pay (free), EFTPS (free, requires enrollment), or by check with Form 1040-ES. Direct Pay allows same-day payments. EFTPS supports scheduled future payments.
Frequently Asked Questions
What happens if I miss a quarterly payment?
The IRS charges an underpayment penalty — typically the federal short-term rate + 3 percentage points, applied to the underpayment amount for the days late. In 2025, that's around 8% annualized.
Do I need to make quarterly payments if I have a W-2 job and side income?
Only if withholding from your W-2 doesn't cover the total tax on all income. You can also increase W-2 withholding (Form W-4) to cover the side income instead of making separate quarterly payments.