CA Estimated Tax Payment (Step by Step Guide)

If you’re self-employed, a freelancer, an independent contractor, a small business owner, or you have income from stock compensation (like RSU, ISO, ESPP), you’re likely required to pay estimated taxes quarterly to the CA FTB. Failing to do so can result in underpayment penalties—even if you end up getting a refund when you file your return.

The good news? Making estimated tax payments is straightforward once you know the process. This guide covers everything you need to know for making the quarterly estimated tax payments.

Who Needs to Pay Estimated Taxes?

You generally must make estimated tax payments if:

• You expect to owe at least $500 in tax for the year after subtracting withholding and credits. (Note that this limit is lower than the IRS limit)

• You expect your withholding and credits to be less than the smaller of:

  • 90% of the tax to be shown on your current year return, or

  • 100% of the tax shown on your prior year return (110% if your prior year AGI was over $150,000, or $75,000 if married filing separately).

• Special rule: If your 2025 AGI is $1,000,000 or more ($500,000 if married/RDP filing separately), base payments on 100% of your 2025 tax (no safe harbor option).

Estimated Tax Due Dates

• April 15 – For income earned Jan – Mar

• June 15 – For income earned Apr – May

• September 15 – For income earned Jun – Aug

• January 15 (of the following year) – For income earned Sep – Dec

If the due date falls on a weekend or federal holiday, it’s moved to the next business day.

How to Calculate Your Estimated Tax Payment

1. Estimate your expected 2025 income, deductions, and credits.

2. Use Form 540-ES – it includes a worksheet.

3. Divide your total estimated tax by 4 (or adjust if income is uneven).

Pro tip: Most people just pay 25%–30% of last year’s total tax bill each quarter to stay safe.

3 Main Ways to Pay Your Estimated Taxes

(Updated as of Nov-2025)

Option 1: CA Direct Pay via Bank Account (Free & Recommended)

• Go to: https://www.ftb.ca.gov/pay

• Select: "Bank Account” → “Use Web Pay Personal"

• Enter your personal info

• Select: “Estimated Tax Payment (Form 540-ES)” → Tax year “2025”

• Click "Add an Estimated Tax Payment" to enter the payment amount and date

• Provide Joint Filer info (if married filing jointly)

• Enter bank account details

• Review all inputs before submission

• Save a copy of payment record & Check bank balance to ensure submission went through successfully

  
  

Option 2: Pay by Debit/Credit Card or Digital Wallet (Fees Apply)

• Go to: https://www.ftb.ca.gov/pay/credit-card.html

• Follow the instructions and make sure to select the correct tax payment year

• Save a copy of payment record & Check credit card balance to ensure submission went through successfully

Option 3: Pay by Check or Money Order

• Use the voucher from Form 1040-ES

• Make payable to “United States Treasury”

• Write your SSN, “2025 Form 1040-ES”, and quarter on the memo line

• Mail to the address listed for your state (see Form 1040-ES instructions)

Making estimated tax payments is one of those “adulting” tasks that feels painful at first—but once you do it once or twice, it becomes routine.

Need help calculating your exact amount? It's always better to overpay a little and get it back than owe penalties. If you need help figure out how much estimated tax to pay, please contact one of our tax advisors and we are glad to help!

This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently, and your situation may differ from the general examples provided. Always consult a qualified tax professional before making decisions about estimated tax payments or any other tax matter. The author and [Your Website Name] are not liable for any actions taken based on this content.

Last updated: November 2025