How do I pay quarterly estimated taxes as a self-employed person in 2025?

As a self-employed individual, you're responsible for paying your own income tax and self-employment tax throughout the year via quarterly estimated tax payments. Here's everything you need to know:

When are estimated taxes due?

Note: Q2 covers only 2 months of income — this catches many people off guard.

Who must pay estimated taxes?

You must make estimated payments if you expect to owe $1,000 or more in federal tax after subtracting withholding and credits.

How to calculate your payments (two safe harbor methods):

• 100% of prior year's tax (110% if AGI was over $150,000): Pay at least this amount divided by 4, and you'll owe no penalty regardless of how much you actually owe. This is the simplest method.
• 90% of current year's tax: If you can accurately estimate this year's income, pay at least 90% of the actual tax due.

How to pay:

• IRS Direct Pay (irs.gov/payments): Free, pay directly from your bank account
• EFTPS (Electronic Federal Tax Payment System): Free, requires enrollment
• IRS2Go app: Mobile payments
• Credit/debit card: Convenience fee applies (1.85%–1.98% for credit cards)
• Mail a check: Send Form 1040-ES voucher with your check to the IRS

What to pay:

Your estimated payment should cover:

• Federal income tax on your self-employment profit
• Self-employment tax (15.3% on the first $168,600 of net SE income for 2024, then 2.9% above that)

Penalty for underpayment:

The IRS charges an estimated tax penalty (Form 2210) based on the federal short-term interest rate + 3%. For 2024, this is approximately 8%. The penalty is calculated per quarter, so even one late payment triggers it.

State estimated taxes: Most states with income tax also require quarterly estimated payments. Check your state's requirements — due dates may differ from federal.