Who actually has to pay quarterlies
Anyone who'll owe $1,000+ in federal tax at year-end after withholding. That's basically every profitable sole prop, partner, single-member LLC, and S-corp owner whose W-2 withholding doesn't cover their full tax bill. If that's you, the IRS expects four payments a year.
2026 due dates
- Q1 — April 15, 2026 (for Jan–Mar income)
- Q2 — June 16, 2026 (for Apr–May income)
- Q3 — September 15, 2026 (for Jun–Aug income)
- Q4 — January 15, 2027 (for Sep–Dec income)
Yes, the quarters are weird. No, the IRS does not care that they're weird.
The "safe harbor" most owners should aim for
You avoid an underpayment penalty if your quarterly payments add up to at least:
- 100% of last year's total tax (110% if your AGI was over $150k), OR
- 90% of this year's actual tax
Easiest play: take last year's total tax, divide by 4, pay that each quarter. Done. You may owe a little at filing if you grew, but no penalty.
State estimates
- California — FTB wants quarterlies too, but on a weird front-loaded schedule: 30% Q1, 40% Q2, 0% Q3, 30% Q4. Check Form 540-ES.
- Nevada & Arizona — no state personal income tax in NV. AZ follows the federal quarterly schedule.
The Profit First way to never miss one
Open a "Tax" bucket account. Every deposit that hits the business — 15–25% gets transferred immediately. On the 14th of April, June, September, and January, you pay the IRS out of that account. The money was never available to spend on something else, so there's nothing to scramble for.
- Every Friday: sweep 15–25% of deposits into Tax bucket.
- Day before each due date: log into IRS Direct Pay, enter the amount, schedule it.
- Repeat next Friday.
S-corp owners — one extra wrinkle
Your W-2 from your own S-corp can withhold federal tax. Crank that up and you may not need separate quarterlies at all — W-2 withholding is treated as paid evenly across the year, which beats lumpy estimates.
We set up the bucket system, run owner W-2 payroll with the right withholding, and handle the math so quarterlies aren't a thing you think about. CA, NV, AZ — that's our lane.
