If you’re rushing to file your taxes by April 15, don’t overlook another important deadline that falls on the same day — the first-quarter estimated tax payment for 2025.
This payment is required if you earn income that doesn’t have taxes automatically withheld. That includes money from freelance or gig work, rental income, dividends, interest, or self-employment. According to the IRS, retirees and investors often need to make these payments too.
Who Should Pay Estimated Taxes?
If you’re newly self-employed or working as an independent contractor, this deadline might catch you off guard. Misty Erickson, tax content manager at the National Association of Tax Professionals, says many people face “sticker shock” at tax time or end up with IRS penalties for missing these payments.
The IRS requires quarterly payments if you expect to owe $1,000 or more in federal taxes this year. The April 15 deadline covers income earned from January 1 to March 31.
Mark Your Calendar: 2025 Estimated Tax Deadlines
- 1st Quarter: April 15, 2025
- 2nd Quarter: June 16, 2025
- 3rd Quarter: September 15, 2025
- 4th Quarter: January 15, 2026
Missing a deadline can lead to interest-based penalties, which are calculated daily and can add up fast.
How to Avoid Penalties: Follow the ‘Safe Harbor’ Rule
Certified public accountant Brian Long explains that one way to avoid penalties is by using the IRS’s safe harbor rule:
- Pay 90% of your 2025 tax liability, OR
- Pay 100% of your 2024 taxes — whichever is lower.
If your 2024 adjusted gross income was over $150,000, you’ll need to pay 110% of your 2024 tax to meet the safe harbor.
While the safe harbor protects you from penalties, you may still owe money when you file in 2026 if you underpaid during the year.
How to Make Your Quarterly Tax Payment
The IRS offers multiple ways to pay estimated taxes:
- Online via IRS Direct Pay
- Through the Electronic Federal Tax Payment System (EFTPS)
- By debit/credit card or digital wallet
- By mail
Using your IRS online account is often the easiest method. It lets you track payments, view your tax history, and fix any errors quickly. Erickson notes this is helpful because misapplied payments are more common than people realize.
If you choose to mail your payment, always use certified mail with a return receipt to have proof of submission.
