Now is the time to pay your taxes and make your estimated tax payment. Both your individual tax return and the estimated tax payments for the first quarter are due on Tax Day—Tuesday, April 15, 2025. Here is what you need to know.

The estimated tax payment rule

It’s a requirement to withhold or prepay throughout the 2025 tax year at least 90% of your 2024 total tax bill or 100% of your 2025 federal tax bill. If your income is more than $150,000 ($75,000 if married, filing separately), you must pay 110% of your 2024 tax obligation to avoid an underpayment penalty on your 2025 tax return. A quick look at your 2024 tax return and a projection of your 2025 tax obligation can help determine if a quarterly payment might be necessary in addition to the withholdings from any paychecks.

Considerations for your Tax Day payments

• Underpayment penalty. You could be subject to an underpayment penalty if you do not have proper tax withholdings throughout the year. A quick payment at the end of the year may not be enough to avoid the penalty.
• W-2 withholdings have special treatment. You can pay a W-2 withholding payment any time during the year. It will be treated as if it was made throughout the year. If you do not have enough to pay the estimated quarterly payment now, you may be able to adjust your W-2 wage withholdings to make up the difference.
• Self-employment taxes. In addition to paying income taxes, self-employed workers must also pay Social Security and Medicare taxes. Creating and funding a savings account for this purpose can help you avoid the cash flow hit each quarter to pay your estimated taxes.
• Use your refund. You can apply some or all of your tax refunds to pay your estimated tax for the first quarter.
• Pay more in the first quarter. By paying a little more than necessary in the first quarter, you can be in a position to adjust future estimated tax payments downward later this year if your tax obligation trends lower than you initially thought.
• Not sure if you need to make a quarterly payment? Take a quick look at your tax return to see the amount of tax you paid last year. Divide this amount by the number of paychecks you receive each year and compare it to your most recent paycheck. Is enough being withheld from each paycheck? Tell your employer if you need to adjust your withholdings to cover next year’s tax bill.