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Estimated taxes for seasonal income

A business that earns most of its money in a few months should not pay the IRS on the same schedule as one with steady income. Here is how to plan for it.

Why seasonal income is different

Landscapers, tax preparers, wedding photographers, holiday sellers and tutors often earn little for months and a lot in a short stretch. The usual advice to set aside a quarter of the year's tax every quarter can leave you paying early, out of money you have not received yet.

Two ways to handle the payments

  • Equal installments. Simple. Each due date asks for a quarter of the required annual payment, whether or not you have earned it yet.
  • Annualized installments. Each payment follows what you earned so far, scaled to a year. This can lower the early payments. Read how the annualized method works.

A planning routine

  1. Estimate your profit for each of the four periods: Jan 1 to Mar 31, Apr 1 to May 31, Jun 1 to Aug 31 and Sep 1 to Dec 31.
  2. Run the calculator with "In lumps or seasons" selected to see a payment for each due date.
  3. When a big payment arrives, set aside the tax share right away so the next due date is covered.
  4. Update the estimate after each period, because the real numbers will differ from the plan.

The estimate covers federal tax only. Many states have their own estimated tax rules and dates.

This is general information, not tax advice. See the disclaimer.

Sources

Last checked October 11, 2026.