If you’re self-employed, a freelancer, or earn income without federal tax withholding (such as rental income or dividends), you’re responsible for paying estimated taxes quarterly. This prevents a large bill at tax time—and avoids IRS underpayment penalties. Here’s how to calculate your quarterly taxes for 2025 and make timely payments.
📅 When Are Quarterly Tax Payments Due in 2025?
The IRS requires four estimated tax payments each year. The due dates for 2025 are:
- April 15, 2025 – for income earned January 1 to March 31
- June 16, 2025 – for income earned April 1 to May 31
- September 15, 2025 – for income earned June 1 to August 31
- January 15, 2026 – for income earned September 1 to December 31
If a date falls on a weekend or holiday, the due date moves to the next business day.
📊 Step-by-Step: How to Estimate Your Quarterly Taxes
Step 1: Estimate Your Total Annual Income
Project your total income for the year from all sources (freelance gigs, contract jobs, investments, etc.).
Step 2: Subtract Deductions and Credits
Reduce your income by subtracting:
- Business expenses (for Schedule C filers)
- Standard deduction or itemized deductions
- Other above-the-line deductions (e.g., IRA, HSA)
Step 3: Calculate Taxable Income
Use the IRS 2025 tax brackets to compute your estimated tax liability based on your taxable income.
Step 4: Add Self-Employment Tax (if applicable)
Self-employed individuals must also pay 15.3% SE tax on net business income (12.4% Social Security + 2.9% Medicare).
Step 5: Subtract Any Tax Credits
Reduce your liability with credits such as:
- Child Tax Credit
- Earned Income Tax Credit (EITC)
- Education credits (Form 8863)
Step 6: Divide by 4 for Quarterly Payments
Split your total estimated tax liability into four equal payments. Adjust if your income fluctuates throughout the year (using the annualized income method).
🧮 Simple IRS Quarterly Tax Calculator Example
Estimated Annual Income: $90,000 (freelance)
Business Expenses: $20,000
Taxable Income: $70,000 – $14,600 (standard deduction) = $55,400
Income Tax (est.): ~$6,200
Self-Employment Tax (15.3% on $70,000): $10,710
Total Estimated Tax: $6,200 + $10,710 = $16,910
Quarterly Payments: $4,227.50 each
🛠️ Use IRS Form 1040-ES
To calculate and pay your estimated taxes, use Form 1040-ES which includes instructions, worksheets, and payment vouchers.
You can also estimate your payments using online tools or by working with a tax preparer if your income is unpredictable.
💻 How to Pay Your Quarterly Taxes
- Direct Pay (IRS.gov) – Pay directly from your bank account
- EFTPS (Electronic Federal Tax Payment System) – For business payments and scheduling
- Mail Form 1040-ES vouchers with a check
- Use the IRS2Go mobile app
⚠️ What Happens If You Don’t Pay Enough?
Underpayment penalties apply if you owe more than $1,000 at tax time and haven’t paid at least:
- 90% of your 2025 tax liability, or
- 100% of your 2024 tax liability (110% if your 2024 AGI was over $150,000)
🧾 Special Tips for Gig Workers and Freelancers
- Set aside 25–30% of every paycheck for taxes
- Track all deductible business expenses (to reduce your tax bill)
- Consider using accounting software like QuickBooks or Wave
- If income varies, use the annualized income installment method (Schedule AI of Form 2210)
✅ Final Thoughts
Quarterly tax payments may feel like a hassle, but they’re essential for anyone without tax withholding. By using a structured calculator and paying on time each quarter, you avoid IRS penalties and ensure smoother filing in 2026. Use Form 1040-ES, automate payments if possible, and adjust amounts if your income changes mid-year.
