Quarterly taxes California - Know how to send payments

Many people have to file their quarterly taxes in California on their own. Rather than having to make full payments in a bigger lump sum, quarterly estimated payments allow you to break down everything into four different quarters.

Many people need to pay quarterly taxes if they expect to owe taxes during the year. The amount depends on your income and deductions. The due dates for these payments in 2024 are April 15, June 17, September 16, and January 15, 2025. Failing to make timely payments can result in penalties and interest charges.

Note: if you want to stay on top of your quarterly taxes and track all your business expenses, then try Bonsai Tax. Our tax software will send you filing reminders as well as scan your bank/credit card receipts to discover potential tax write-offs. Users typically save $5,600 from their tax bill with our app. Try a 7-day free trial today.

Who needs to pay ca estimated tax payments?

Do you have to pay estimated taxes? Well, you should make estimated tax payments if, by the end of the tax year, you expect to owe taxes more than:

• $500, if you are filing to the FTB as a corporation
• $250, if you married and/or filing RDP separately
• $1000, if you are self-employed and are filing to the IRS for tax return

The IRS and the Franchise Tax Board expect your withholdings and tax credits to be less than at least one of the following:

• $1,000 in tax liability after subtracting withholding and credits if your adjusted gross income is more than $150,000.
• $500 in tax liability after subtracting withholding and credits if your adjusted gross income is less than $150,000.

• 90% of the current year's tax
• 100% of the previous tax year (alternative minimum tax included)

No matter the source of your income, if you expect to owe the amounts mentioned above, then you will need to file for estimated taxes. Otherwise, you'll become subject to tax liability.

Does california require ca estimated tax payments?

As with every other state in the United States, California also requires you to make estimated tax payments. If you expect to owe an estimated tax of at least $500 to the IRS, then you have to gather your records and file your estimated taxes. Make sure you respect the deadlines for the tax year that you are paying for.

What are the ca estimated tax payment dates?

Due dates for quarterly estimated tax payments are spread throughout the year, requiring four forms and payments. The dates for California match the federal schedule, but the percentage of the estimated tax required for each payment may differ.

The payment percentages for each due date in California are:

• April 15 - 30%
• June 17 - 22%
• September 16 - 22%
• January 15 (following year) - 26%

• First Quarter - April 15, 2021 - 30%
• Second Quarter - June 15, 2021 - 40%
• Third Quarter - September 15, 2021 - 0%
• Fourth Quarter- January 18, 2022 - 30%

Respect all these due dates to avoid tax penalties and interest charges for underpayment or late reporting of taxable income.

California estimated tax payment deadlines for 2025 and beyond

Understanding California estimated tax payment deadlines

California requires freelancers and small business owners to make quarterly estimated tax payments if they expect to owe $500 or more in state taxes for the year. The deadlines for these payments in 2025 are set by the Franchise Tax Board (FTB) and align closely with federal estimated tax dates. Meeting these deadlines helps avoid penalties and interest charges on underpaid taxes.

The 2025 California estimated tax payment deadlines fall on April 15, June 17, September 16, and January 15, 2026. These dates reflect the state's adjustment for weekends and holidays, such as the June 15 federal deadline shifting to June 17. Missing these deadlines can trigger a penalty of 5% of the unpaid tax amount plus 0.5% per month of continued nonpayment.

To stay compliant, freelancers can use the FTB’s online payment system or third-party tools like QuickBooks or TaxAct, which integrate state payment reminders. Setting calendar alerts a week before each deadline is a simple way to avoid late payments. Timely payments also improve cash flow management by spreading tax obligations evenly throughout the year.

How to calculate and submit California estimated tax payments

Calculating your California estimated tax payments starts with estimating your expected income, deductions, and credits for the 2025 tax year. Use Form 540-ES, which includes worksheets to help calculate your quarterly payments based on your projected taxable income. You can also use online calculators like the FTB’s Estimated Tax Calculator for more accuracy.

Once you determine the amount, divide it into four equal payments due on the deadlines. For example, if your estimated tax for 2025 is $4,000, each quarterly payment will be $1,000. You can pay online via the FTB’s Web Pay system, which accepts direct bank transfers and credit cards, or mail a check with the payment voucher included in Form 540-ES.

Freelancers should keep detailed income records throughout the year to refine estimates for each quarter. If your income varies significantly, you can adjust payments accordingly to avoid overpaying or underpaying. Using accounting software like FreshBooks or Bonsai can simplify tracking income and estimating taxes in real time.

Planning for changes in estimated tax deadlines beyond 2025

California’s estimated tax deadlines typically stay consistent year to year. Monitor any legislative changes that could affect payment schedules. For example, unexpected state budget adjustments or federal tax reforms may lead to deadline shifts or changes in penalty rules after 2024.

Staying informed through the Franchise Tax Board’s official website and subscribing to their email alerts ensures you receive timely updates. Additionally, consulting with a tax professional annually can help you adapt your payment strategy to any new regulations or changes in your business income.

Proactively reviewing your estimated tax payments each year and adjusting for new deadlines or tax law changes will keep you compliant and avoid surprises. Mark your calendar for the first quarter of each year to review any updates from the FTB and plan your payments accordingly.

How much to pay for ca estimated tax payments?

Figuring how much tax you have to pay can be slightly tricky, especially if you are only beginning as a self-employed person. The main idea here is to estimate just how much you're likely to owe in the year that comes so that you may apply for tax relief.

A helpful tool would be to take your records from the prior year and use them as a guide. If you determine that your California revenue has changed throughout the year, you need to make the updates accordingly.

Remember, it's always better to pay slightly more than slightly less when making your estimated tax payments. If you pay more, then you may get your money back.

However, if you pay less, you may be charged with willful neglect, and the California FTB will charge tax liability on you. You need to make sure that you cover the payment amount by the quarterly due dates.

If you are not fully certain how much you have to pay in estimated tax or cannot make a prediction, then you may ask for help from the California FTB. They will help you predict some reasonable estimated tax payments.

How to calculate your quarterly estimated tax payments

Determine your expected annual income and tax liability

Start by estimating your total income for the year, including freelance earnings, business revenue, and any other taxable income. This figure forms the basis for calculating your quarterly estimated tax payments in California. Use your previous year's tax return as a reference, adjusting for any expected changes in 2024 or 2025.

Next, calculate your expected tax liability by applying California's tax rates to your estimated income. For 2024, California’s income tax rates range from 1% to 12.3%, depending on your income bracket. Don't forget to include federal taxes and self-employment taxes if applicable. Tools like the California Franchise Tax Board’s online tax calculator can help you estimate your state tax liability accurately.

By having a clear estimate of your annual tax liability, you can ensure your quarterly payments are accurate, helping you avoid penalties. Keep detailed records of income sources and revisit your estimates mid-year to adjust payments if your income changes significantly.

Calculate each quarterly payment based on your annual estimate

Once you have your total estimated tax liability, divide this amount by four to determine your quarterly estimated tax payments. For example, if you expect to owe $8,000 in California state taxes for 2024, each quarterly payment should be $2,000. This straightforward division ensures you spread your tax burden evenly throughout the year.

Keep in mind that California requires estimated tax payments on specific dates: April 15, June 15, September 15, and January 15 of the following year. Align your payment schedule with these deadlines to stay compliant. If your income fluctuates, you can adjust upcoming payments accordingly, but try to avoid underpayment to prevent interest and penalties.

Using accounting software like QuickBooks or tax apps such as TaxAct can automate these calculations and reminders. These tools can track your income and suggest payment amounts, making it easier to stay on top of your estimated taxes throughout the year.

Account for credits, deductions, and safe harbor rules

When calculating your estimated payments, factor in any tax credits or deductions you expect to claim. For example, business expenses, health insurance premiums, and retirement contributions can reduce your taxable income. Incorporating these into your calculations lowers your quarterly payment amounts, preventing overpayment.

California also follows federal safe harbor rules, which help you avoid penalties if you pay at least 90% of your current year’s tax or 100% of your prior year’s tax through estimated payments. For higher incomes, the safe harbor threshold increases to 110%. Understanding these rules can guide how much you pay each quarter, especially if your income varies.

Review your tax situation mid-year to apply any new deductions or credits and adjust your payments accordingly. Consult with a tax professional or use updated tax software to ensure your calculations reflect the latest 2024 tax laws and safe harbor provisions.

How to make your quarterly estimated tax payments

Understand the ca estimated tax payment dates

California requires estimated tax payments to be made quarterly to avoid penalties and interest. The 2024 payment deadlines are April 15, June 17, September 16, and January 15, 2025. These dates align with the federal schedule but have slight variations. Follow California’s specific deadlines carefully to ensure timely payments.

Missing a payment or paying late can result in penalties, even if you file your tax return on time. For example, if your estimated tax due is $1,000 and you miss the June 17 deadline, you could face a penalty based on the amount unpaid and the delay period. Staying on top of these dates helps you manage cash flow and avoid unexpected costs.

Set calendar reminders or use tax software like TurboTax or TaxAct, which automatically track and remind you of these deadlines. This proactive approach ensures you never miss a payment and keeps your tax obligations on track throughout the year.

Calculate your estimated tax payments accurately

Calculating your estimated tax payments starts with estimating your expected income, deductions, and credits for the year. Use your previous year’s tax return as a baseline, then adjust for any changes in income or expenses. California requires you to pay either 90% of your current year’s tax or 100% of the previous year’s tax, whichever is less, to avoid penalties.

For example, if your 2023 California tax was $4,000, pay at least $4,000 in 2024 through quarterly payments. If you expect your income to increase significantly, calculate 90% of the estimated 2024 tax to avoid underpayment penalties. Tools like the California Franchise Tax Board’s online calculator can help you estimate these amounts precisely.

Keep records of your income and expenses throughout the year to update your estimates if needed. Adjusting payments quarterly helps prevent large balances due at tax time and keeps your finances steady.

Choose the best payment method for your quarterly taxes

California offers several convenient methods to make your estimated tax payments. The fastest and most secure way is using the Franchise Tax Board’s (FTB) online payment system, which accepts direct bank transfers and credit cards. Payments made online process quickly and provide immediate confirmation.

If you prefer not to pay online, mail a check or money order with payment voucher (Form 540-ES) to the FTB. Mailed payments must be postmarked by the due date to avoid penalties. Some banks offer bill pay services, allowing you to schedule payments directly to the FTB. This can help automate your quarterly payments.

For freelancers and small business owners, setting up automatic payments through the FTB’s online system or your bank’s bill pay can reduce the risk of missing deadlines. Always keep proof of payment, such as confirmation emails or bank statements, to resolve any discrepancies quickly.

Track and adjust your payments throughout the year

Monitoring your income and tax payments regularly helps you avoid surprises at tax time. If your income fluctuates, update your estimated tax calculations each quarter. For instance, if you earn more in the second quarter, increase your September and January payments accordingly to cover the higher tax liability.

Use accounting software like QuickBooks or FreshBooks to simplify tracking income and expenses. This makes it easier to adjust your estimated payments. Consult a tax professional mid-year to review your payment strategy and ensure compliance with California tax laws.

By actively managing your estimated tax payments, you reduce the risk of underpayment penalties and improve your financial planning. Set quarterly reminders to review your income and payment status, and adjust promptly to stay on track.

How to pay ca estimated taxes in 2021?

There are two ways for you to pay your estimated taxes. The first one is to go to the main IRS website and make the payment there. This is often a good option when you want to make the payment from the comfort of your home.

The second option is to go by traditional mail to the Franchise Tax Board - and make sure you write everything clearly. The address is PO Box 942867, Sacramento CA 94267-0008.

When you make the payment online or send the money order to the California Franchise Tax Board, you also need to put down your ITIN or SSN. Alongside that information, you must also add Form 540-ES.

Bear in mind that each due date has its own payment form. Therefore, when you are paying income tax, make sure that you pick the right one, with the correct date.

Is paying ca estimated taxes mandatory?

If you do not want to incur estimated tax payment penalties, then yes, these payments are mandatory. The tax code says that anyone who expects to owe taxes of at least $500 must make a quarterly estimated payment.

What happens if you don't pay ca estimated taxes?

First things first, if you fail to pay your state income tax to the California Franchise Tax Board on time, then you risk an estimated tax penalty. Depending on how late you are, the penalty may vary.

Moreover, if the California Franchise Tax Board determines that your balance is due and you haven't paid your alternative minimum tax, they may garnish your wages.

Depending on your debt, they can also record and file liens against your property, levy what bank accounts you may have, and seize your assets.

Last by not least, when you make estimated tax payments, you also become eligible for income tax return. By failing to make this payment, you forfeit your right for getting said tax return.

Ca estimated tax penalties

The California Franchise Tax Board will charge several penalties if you fail to make your estimated payments on time. Depending on your offense, you may face the following penalties:

• Underpayment penalties for not paying enough on time
• Late payment penalties for missing due dates
• Interest charges on unpaid tax amounts

• Estimated Tax Late Filing Penalty: 25% of the amount due
• Late Payment/Underpayment Penalty: 0.5-25% of the underpaid tax
• Mandatory e-Pay Penalty: 1% of the amount paid
• Dishonored Payment Penalty: $25 for payments less than $1,250 and 2% for payments over that amount.

Underpayment penalties happen when you fail to make the estimated tax payments in full on time. These penalties will usually take place when you file for tax returns at the end of the taxable year.

To calculate your penalties for underpaid estimated payments, you will need to use IRS Form 2210. The first page of this form has a flowchart that will tell you whether you have to file the form as well or not.

Even if there is no need to file Form 2210, you may still use it in order to calculate the approximate penalty that you owe.

Note: the best way to avoid penalties is to file the correct payments on time.

Calculating the underpayment amount can be fairly challenging, as the rates change from one year to another. In most cases, a tax advisor might be necessary. That being said, you may still follow the list of instructions from Form 2210.

Leave the calculation of penalty amounts to the IRS if you want to avoid the hassle. They will determine the penalty based on your estimated payments.

If you pay the entire amount you owe by the bill due date, no extra fees or penalty for overpayment will be charged. This is the typical process:

1. The IRS will make use of your tax return in order to determine the amount in tax payments that you should have made.
2. A penalty rate percentage may be applied to determine the penalty for every quarter
3. The penalty amounts for each quarter will be added, resulting in the full underpayment penalty that you'll need to pay by the end of the tax year.

To calculate a California quarterly tax underpayment, Form 5805 may be used. The form itself and the rates may be different, but the technique is the same. You can still leave it to the IRS to take care of things for you.

When can ca estimated tax penalties be waived?

In certain circumstances, the penalty can also be waived. First, if you subtract your withholding, tax credits and estimated payments, and owe less than $500 to the FTB, you are not charged a penalty. The same applies if you owe less than $100 to the IRS.

If you didn't get any income tax liability in the prior year, then you'll also be spared the penalty. Fishermen and farmers go by special rules as well, and may not pay a penalty.

Some special circumstances may also waive your penalty, including:

• Subtracting withholding, tax credits, and estimated payments resulting in owing less than $500 to the FTB
• Owing less than $100 to the IRS
• No income tax liability in the prior year
• Special rules applying to fishermen and farmers

• If you are a disabled person or can prove that your reason for underpayment was not caused by willful neglect.
• If you suffered an injury or were a victim of a disaster or casualty that prevented you from making the payment on time.

No matter the cause for the underpayment, you need to bring proof that supports your claims.

Conclusion on ca estimated tax payment dates

Tax time can be rather stressful for many residents of California, and quarterly taxes are no exception. Make sure that you save your receipts ahead of time to pay less California taxes and that you calculate everything carefully. This will help you prevent an accidental underpayment.