‹ Return to list

How Do I Budget for Quarterly Tax Payments?

Greg Swanson

If you’re asking how do I budget for quarterly tax payments, you’re ahead of the game. Many freelancers and small business owners forget until it’s too late—but with a simple system, it’s easy to stay on top of it.

Quick answer: Budget for quarterly tax payments by estimating your total tax, dividing it by four, and setting aside a percentage of every payment you receive.

Estimate What You Owe

Use Last Year’s Tax Return: If your income is similar, it’s a good baseline for what you’ll owe this year.
Calculate 25%–30% of Income: That’s a common rule of thumb for self-employed tax budgeting.
Use IRS Form 1040-ES: It helps you calculate quarterly amounts based on your income and deductions.

Set Money Aside as You Go

Create a Tax Savings Account: Automatically transfer a percentage of each payment into this account.
Track Income Monthly: Keep tabs on how much you’re earning so you can adjust your savings if needed.
Don’t Touch It: Treat it like it’s already spent. That money belongs to the IRS.

Make On-Time Payments

Set Reminders: Tax due dates are mid-April, June, September, and January. Put them in your calendar.
Use EFTPS.gov: The IRS’s free system lets you pay securely online.
Avoid Penalties: Paying even slightly late can lead to interest and fines.

Getting in the habit of paying estimated tax payments each quarter keeps your finances cleaner—and avoids surprises when tax season rolls around.

Updated: August 11, 2025

How much should I set aside for quarterly taxes?

A good rule is to set aside 25% to 30% of your gross income, depending on your total income and deductions.

When are quarterly tax payments due?

Quarterly taxes are typically due on April 15, June 15, September 15, and January 15 of the following year.

What happens if I miss a quarterly tax payment?

The IRS may charge penalties and interest for late or underpaid estimated taxes, even if you pay in full by year-end.

Can I automate my estimated tax payments?

Yes, you can schedule payments through EFTPS.gov or some accounting software tools to avoid missing deadlines.