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Third Quarter Estimated Tax Payments — Building Financial Preparedness

September 2, 2025 | Weekly Commentary

Overview of Q3 Estimated Tax Payments

Third-quarter estimated tax payments for 2025 are due September 15, 2025, for federal, state, and local, depending on your situation. These payments are critical for individuals who do not have sufficient taxes withheld from their income, such as:

  • Self-employed individuals, freelancers, or gig workers
  • Business owners with income from partnerships, S corporations, or sole proprietorships
  • Investors with significant income from dividends, capital gains, or rental properties
  • Retirees with taxable pensions or investment income

Calculating and Making Payments
To estimate your 2025 tax liability:

  1. Review your 2024 Tax Return – Use last year’s return as a baseline
  2. Aim for Safe Harbor – to avoid penalties, pay at least 100% of last year’s tax (110% if your adjusted gross income was over $150,000) or 90% of your 2026 tax liability, whichever is smaller
  3. Payment Options – Pay online via IRA Direct Pay, or through your state’s tax portal for state taxes.  Please note that, effective September 30, 2025, the IRS will no longer accept paper checks