Tax · 6 min read

Quarterly Estimated Taxes Explained

If you'll owe more than $1,000 in tax for the year and aren't having enough withheld, the IRS expects four estimated payments — or it adds an underpayment penalty.

Who has to pay

  • Sole proprietors and single-member LLCs
  • Partners, S-Corp owners, and most LLC members
  • W-2 earners with significant side income
  • Landlords with positive net rental income

Due dates each year

  • Q1 — April 15
  • Q2 — June 15
  • Q3 — September 15
  • Q4 — January 15 of the following year
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The CPA-Ready Business Finance Starter Kit

A practical, advisor-grade workbook for owners and founders — the foundations your CPA wishes every client showed up with. Books, taxes, cash flow, and entity decisions, in one place.

  • Monthly bookkeeping rhythm
  • Tax-ready document checklist
  • Entity & S-Corp decision guide
  • Cash flow & owner pay basics

No signup required. Informational only — consult your CPA for advice.

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Two simple safe-harbor methods

  • 100% of last year's tax (110% if AGI > $150K)
  • 90% of this year's projected tax

A repeatable owner workflow

Every quarter, run your P&L, multiply net profit by your blended tax rate (often 25–35%), subtract what you have already paid, and send the rest to the IRS and your state.

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