Estimated state tax payments work similarly to federal estimated payments. They are periodic payments made directly to your state’s revenue department to cover income tax when withholding is insufficient or not applicable.
Who Typically Makes State Estimated Payments?
You may need to make estimated payments to your state if:
- You are self-employed, a freelancer, or a gig worker
- You receive income from sources not subject to state withholding, such as:
- Rental income
- Investment income (dividends, capital gains)
- Retirement distributions
- You owed state tax last year and expect to owe again this year
Most employees do not need to make estimated payments because their employers typically withhold state income taxes from each paycheck.
When Are State Estimated Payments Due?
Each state sets its own quarterly due dates, but they often align with federal deadlines:
- April 15, 2025
- June 16, 2025
- September 15, 2025
- January 15, 2026
Check with your state’s tax agency for specific due dates and payment instructions.
How to Report State Estimated Payments
To enter your state estimated payments in your tax return:
- Federal Section
- Payments & Estimates
- State Estimated Payments
Additional Notes
- Some states require electronic payments and may impose penalties for underpayment or delinquent payments.
- If you moved between states or earned income in multiple states, you may need to make estimated payments to more than one state.