Quarterly taxes are estimated tax payments made four times a year to the IRS (and sometimes state tax agencies) to cover income and self-employment taxes as you earn income, rather than waiting until the end of the year.
What are Quarterly Taxes?
Quarterly taxes are periodic estimated tax payments that certain taxpayers—especially business owners, self-employed individuals, and non-U.S. residents with U.S. income—are required to make throughout the year. Instead of paying your full tax bill once a year when filing your annual return, the IRS requires you to pay taxes as you earn income. This system helps the government collect revenue evenly throughout the year and prevents taxpayers from owing a large lump sum at tax time.
In the U.S., quarterly taxes generally cover both federal income tax and self-employment tax (Social Security and Medicare), and in some cases, state income tax. They are typically due on four dates: April 15, June 15, September 15, and January 15 of the following year (dates may shift if they fall on a weekend or holiday). Each payment is based on an estimate of your taxable income, deductions, and credits for the year. If you underpay, you may face penalties and interest, even if you pay the balance in full by the tax return deadline.
For non-U.S. residents who own U.S. businesses, quarterly taxes can be especially important if your company is structured as a pass-through entity (like a single-member LLC or partnership) where profits are taxed on your personal return. You may also owe quarterly taxes if you receive U.S.-source income not subject to withholding, such as certain service payments. Calculating these payments accurately often requires working with a tax professional, as both federal and state rules can apply.
In short, quarterly taxes are a way to stay on top of your tax obligations throughout the year, avoid penalties, and ensure that you meet IRS and state requirements for timely payment.
