How to Pay Quarterly Estimated Taxes in Texas
If you're self-employed or a business owner in Texas and expect to owe $1,000 or more in federal tax after withholding, the IRS wants estimated taxes paid in four installments—typically due around April 15, June 15, September 15, and January 15. You can pay online with IRS Direct Pay or EFTPS; because Texas has no state personal income tax, there's no separate state estimate to file.
The 30-second answer
- In Texas, estimated taxes are federal only — there's no state personal income tax.
- You generally need to pay if you expect to owe $1,000 or more after any withholding.
- There are four deadlines each year: about April 15, June 15, September 15, and January 15.
- The simplest ways to pay are IRS Direct Pay or EFTPS.
- Hit the safe harbor (pay 100% of last year's tax, or 110% if you're a higher earner) and you avoid underpayment penalties even if you owe more at filing.
Who actually needs to pay
If you're a freelancer, 1099 contractor, gig worker, or LLC owner, no employer is withholding tax from a paycheck for you. The IRS runs on a pay-as-you-go system, so it expects tax throughout the year. This catches a lot of newly self-employed Houston folks in their first year — they file in April, see a large balance plus a penalty, and realize they were supposed to be paying quarterly.
How to figure out what to send
You have two paths:
- Estimate for real. Project your net profit, add self-employment tax (15.3% covers Social Security and Medicare) on top of your income-tax bracket, then divide by four. The Form 1040-ES worksheet walks you through it.
- Use the safe harbor. Take last year's total federal tax, divide by four, and pay that. As long as you cover 100% (or 110% at higher incomes), the IRS won't penalize you — even if this year turns out bigger.
The safe harbor is usually easiest for a busy owner, but if your income dropped, estimating for real can lower what you pay now.
How to pay (and keep proof)
- IRS Direct Pay — free bank draft, no enrollment.
- EFTPS — good for businesses; enroll a couple of weeks ahead.
- IRS2Go app or debit/credit card — convenient, but card processors charge a fee.
Always save the confirmation number for each payment.
A Houston timing note
Gulf Coast hurricane season overlaps the June and September deadlines. After a federally declared disaster, the IRS frequently postpones filing and payment deadlines for affected Texas counties — so a date that looks firm can shift. Check the IRS disaster-relief page before a storm-season deadline, and don't assume relief is automatic until it's announced for your county.
Frequently asked questions
QDo I owe Texas state estimated taxes too?
No—Texas has no personal state income tax, so estimated taxes are federal only. A business may separately owe Texas franchise tax, but that's a different filing from your quarterly estimates.
QWhat happens if I miss a quarterly payment?
The IRS charges an underpayment penalty that works like interest on what you should have paid. Send the payment as soon as you can to stop it from growing, and catch up on the next quarter.
QCan't I just pay everything when I file in April?
You can, but you'll likely owe an underpayment penalty on top of the tax. Paying quarterly—or hitting the safe harbor—avoids that.
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