Taxpayers Face Jan. 15 Deadline to File Fourth-Quarter 2025 Estimated Taxes

Individuals and businesses with income not subject to withholding must pay their final 2025 estimated tax installment by January 15, 2026. This deadline offers a critical opportunity to avoid underpayment penalties and adjust tax liabilities for the year.

The final deadline for filing fourth-quarter estimated taxes for the 2025 tax year is January 15, 2026. This payment covers income earned from October 1 to December 31, 2025, and applies to self-employed individuals, freelancers, investors, and others who receive income not subject to automatic withholding by employers. Taxpayers who failed to make quarterly payments throughout the year or whose earlier payments were insufficient may face underpayment penalties if they do not settle their full liability by this date. The IRS calculates these penalties based on the amount owed and the length of the underpayment, with rates tied to the federal short-term rate plus three percentage points. For those using the annualized income installment method, the deadline remains January 15. This method allows taxpayers with uneven income streams—such as seasonal businesses or project-based contractors—to spread payments more equitably across the year. However, failure to meet the quarterly thresholds can still result in penalties. The IRS has not announced changes to the estimated tax payment rules for 2025, meaning the standard 90% of annual tax liability threshold applies. Payments can be made electronically via the Electronic Federal Tax Payment System (EFTPS) or through approved financial institutions. Late payments may also affect eligibility for certain tax credits and deductions in subsequent years.