Estimated tax paymentsEstimated tax installments
Overview
Estimated tax is the tax you expect to owe for the current tax year after subtracting:
- Credits you plan to take
- Tax you expect to have withheld
Typically if you have an employer, tax payments are automatically deducted from your check and sent to us. When you file a tax return, you find out if you’ve:
- Paid too much (you get a refund)
- Paid too little (you owe taxes)
If you expect to owe over a certain amount, you must make estimated tax payments throughout the year. Pay on time to avoid penalties and fees and use web pay to make your payment.
How to pay
- Online
- To make your payment online. Visit our payment options.
- Franchise Tax Board
PO Box 942867
Sacramento CA 94267-0008
- Use Estimated Tax for Individuals (Form 540-ES) vouchers to pay your estimated tax by mail
- Make your check or money order payable to the “Franchise Tax Board”
- Write your SSN or ITIN and “2024 Form 540-ES” on it
There is a separate payment form for each due date. Be sure you use the form with the correct due date shown in the top margin of the form.
Visit Instructions for Form 540-ES for more information.
Who must pay
Generally, you must make estimated tax payments if in 2024 you expect to owe at least:
- $500
- $250 if married/RDP filing separately
And, you expect your withholding and credits to be less than the smaller of one of the following:
- 90% of the current year’s tax
- 100% of the prior year’s tax (including alternative minimum tax)
Example:
Mr. Smith’s tax liability was:- $2,000 in the current year. 90% is $1,800
- $1,000 in the prior year. 100% is $1,000
Limit on the use of prior year’s tax
If you’re required to make estimated tax payments and your prior year California adjusted gross income is more than:
- $150,000
- $75,000 if married/RDP filing separately
Then you must base your estimated tax based on the lesser of:
- 90% of your tax for the current tax year
- 110% of your tax for the prior tax year (including alternative minimum tax)
This rule does not apply to farmers or fishermen.
Example:
Mrs. Smith’s tax liability was:- $5,000 in the current year, 90% is $4,500
- $3,000 in the prior year, 110% is $3,300
High income estimated tax
If your current tax year's adjusted gross income for California is equal to or greater than:
- $1,000,000
- $500,000 if married/RDP filing separately
You must pay your estimated tax based on 90% of your tax for the current tax year.
Example:
Mr. and Mrs. Grant’s current tax year joint AGI is $1,250,000. Their tax liability:- $127,518 in the current year, 90% is $114,766
How to calculate
Use the California Estimated Tax Worksheet in the Instructions for Form 540-ES to calculate your estimated tax.
Recalculating your estimated tax for each payment may increase accuracy.
When to pay
Your tax payments are due in 4 payments. California differs from federal. To avoid a penalty, you must pay on or before the below dates.
Payment | Amount | Due date |
---|---|---|
1 | 30% | April 15, 2024 |
2 | 40% | June 17, 2024 |
3 | 0% | September 16, 2024 |
4 | 30% | January 15, 2025 |
Check your estimated tax
Login or register for MyFTB to view estimated payments you have already made.