Why the CA Estimated Tax Payments 2026 Schedule Ends in January
As of August 2026, the California estimated tax deadlines 2026 schedule requires individual estimated installments at 30% by April 15, 40% by June 15, 0% on September 15, and 30% by January 15, 2027, according to the FTB estimated tax payments page. Unlike federal quarterly taxes, California does not demand a payment on the September date. Instead, under the California 30/40/0/30 schedule, the state’s fourth installment of 30% becomes the next major checkpoint for anyone tracking ca estimated tax payments 2026. Taxpayers who file their 2026 return by January 31, 2027, and pay the full balance can skip the January 15 estimated payment without incurring a fourth-installment penalty, per the 2026 Form 540-ES instructions.
CA estimated tax payments 2026 follow a 30% / 40% / 0% / 30% schedule. The third installment is 0% on September 15, 2026, and the fourth installment of 30% is due January 15, 2027. Filing the 2026 California return by January 31, 2027, and paying the full balance removes the need to make the January 15 estimated payment. (FTB)
⚠️ September 15, 2026 is 25 days away
September 15 brings Q3 federal estimated tax under 1040-ES, while California’s third individual estimated installment is 0% under the 2026 30/40/0/30 schedule. Calendar-year S-Corp and partnership returns on extension are also due September 15.
For small business owners, landlords, investors, and self-employed filers across Moreno Valley, Riverside, Corona, and the wider Inland Empire, the January window is a planning opportunity rather than a routine reminder. If you want help reconciling quarterly activity before the year-end close, our monthly bookkeeping can keep the numbers ready for the final installment decision.
By Adham Abadier, CPA — Licensed in California, License #158599.
Key Takeaways: CA Estimated Tax Payments 2026 Deadlines
- California’s 2026 individual estimated installments are 30% on April 15, 40% on June 15, 0% on September 15, and 30% on January 15, 2027 (FTB).
- California generally requires estimated payments when expected tax after withholding and credits is at least $500, or $250 for married/RDP filing separately (Form 540-ES instructions).
- Most taxpayers must compare 90% of 2026 tax with 100% of 2025 tax, including AMT (Form 540-ES instructions).
- High-income filers with 2025 California AGI over $150,000, or $75,000 married/RDP filing separately, use the lesser of 90% of 2026 tax or 110% of 2025 tax (Form 540-ES instructions).
- California taxpayers with 2026 California AGI of $1,000,000 or more, or $500,000 married/RDP filing separately, must base estimated tax on 2026 tax (Form 540-ES instructions).
- Filing the 2026 return by January 31, 2027, and paying the entire balance can replace the fourth installment (Form 540-ES instructions).
- Electronic payment becomes mandatory for all future payments once an estimate or extension payment exceeds $20,000 or a return shows total tax over $80,000; noncompliance can carry a 1% penalty (Form 540-ES instructions).
CA Estimated Tax Payments 2026: The 30/40/0/30 Rule
The headline issue for 2026 is not just when California wants money, but how much it wants at each point. The FTB’s current schedule breaks the required annual payment into unequal installments:
| Payment | Share of Required Annual Payment | Due Date |
|---|---|---|
| First | 30% (FTB) | April 15, 2026 |
| Second | 40% (FTB) | June 15, 2026 |
| Third | 0% (FTB) | September 15, 2026 |
| Fourth | 30% (FTB) | January 15, 2027 |
This structure means the September 15 date behaves differently for California than it does for federal estimated tax. California’s third installment is 0%, but the fourth installment is due after the tax year ends on January 15, 2027. That gives taxpayers a short bridge between December 31 and January 15 to finalize income records and decide whether to pay the fourth installment or file the full return early.
A CPA perspective grounded in the FTB instructions: the fourth installment is the time to test whether your original annual estimate still matches actual income. If income changed materially after June, the January amount should reflect the updated worksheet. If income is too fluid to project, the early-filing-by-January-31 option can replace the final payment once the actual return is ready. Verified by Adham Abadier, CPA — License #158599.
Why the September Date Still Matters
Even though California does not require a third estimated installment, September 15 remains on the calendar. The deadline block above references Q3 federal estimated tax and extended entity returns, and California taxpayers with federal obligations should not assume a zero California installment also means zero federal activity. The FTB schedule itself says California differs from federal, and taxpayers must pay California amounts on or before the California dates to avoid a penalty (FTB).
Who Must Make CA Estimated Tax Payments 2026
The Form 540-ES instructions state that you generally must make estimated tax payments if you expect to owe at least $500 for 2026 after withholding and credits, or $250 if married/RDP filing separately, and your withholding and credits will be less than the smaller of 90% of the 2026 tax or 100% of the 2025 tax including AMT (FTB).
Exceptions and special rules apply. Nonresidents or new California residents who did not have a California tax liability in 2025 do not have to make estimated payments. Military servicemembers not domiciled in California do not include military pay in the computation. Farmers and fishermen have separate timing rules, including the ability to pay all estimated tax by January 15, 2027, or file by March 1, 2027, and pay the total tax due (FTB).
California Safe Harbor Estimated Tax Rules for the Fourth Installment
The fourth payment should not be set by copying the prior three payments. California’s safe harbor framework depends on income level and prior-year tax. Use Form 540-ES and the California Estimated Tax Worksheet to determine the required amount.
Standard Safe Harbor
If you are required to make estimated payments, your withholding and credits must reach the smaller of 90% of the 2026 tax or 100% of the 2025 tax including AMT (FTB). This is the baseline comparison for many wage earners, landlords, and pass-through business owners whose income did not cross the higher-income thresholds.
Higher-Income Limit on Prior-Year Tax
If your 2025 California AGI was more than $150,000, or $75,000 if married/RDP filing separately, you must figure estimated tax based on the lesser of 90% of 2026 tax or 110% of 2025 tax including AMT. This rule does not apply to farmers or fishermen (FTB).
$1 Million AGI Rule
If your 2026 California AGI is equal to or greater than $1,000,000, or $500,000 if married/RDP filing separately, estimated tax must be figured based on 2026 tax. In the worksheet language, taxpayers at that level use the current-year amount rather than a prior-year safe harbor line (FTB). This matters for founders, investors, and business owners with a large sale, liquidity event, or unusual gain in 2026.
Numeric Example Using the FTB Percentages
Assume a California taxpayer’s required annual estimated amount is determined to be $12,000 using the Form 540-ES worksheet and applicable safe harbor. The FTB schedule requires the following installment amounts:
- First installment: $12,000 × 30% = $3,600 due April 15, 2026
- Second installment: $12,000 × 40% = $4,800 due June 15, 2026
- Third installment: $12,000 × 0% = $0 on September 15, 2026
- Fourth installment: $12,000 × 30% = $3,600 due January 15, 2027
All figures come directly from the 30/40/0/30 percentages published by the FTB (FTB). The $12,000 annual amount is used only to show the arithmetic; each taxpayer must calculate their own required annual payment based on projected tax, withholding, credits, and the applicable safe harbor.
January 15 Payment or January 31 Early Filing
The most useful planning rule for the fourth quarter is the early-return rule. The Form 540-ES instructions say that if you file your 2026 tax return by January 31, 2027, and pay the entire balance due, you do not have to make the last estimated tax payment. In addition, you will not owe a penalty for the fourth installment (FTB).
Choosing Between the Two Paths
- Pay the fourth installment by January 15, 2027. This is the default if you need more time to complete the return. Use the worksheet to determine whether the remaining payment should be 30% of the original required annual amount or an updated figure based on actual year-end data.
- File the complete 2026 return by January 31, 2027. If records are complete and the balance can be paid, this replaces the fourth installment and avoids a fourth-installment penalty under the FTB rule.
- Check MyFTB first. The FTB encourages taxpayers to log in or register for MyFTB to check estimated payments already received (FTB). This is especially important if payments were made through withholding, Web Pay, software, or joint payments.
Annualization for Uneven Income
If taxable income did not arrive evenly during the year, the annualization option may produce a more accurate required payment. The FTB explains that annualization allows estimated tax payments to match the actual period when income was earned, and points to the annualization schedule included with Form FTB 5805 (FTB). For a business owner in the Inland Empire whose largest receipts landed after June, annualization may better align the remaining obligation with real cash flow than a simple projection.
Payment Methods, Mandatory E-Pay, and Penalty Exposure
How to Pay
The FTB lists several payment methods. Web Pay on the FTB website allows online payment or scheduling a future payment up to one year in advance. Electronic funds withdrawal may be available through tax preparation software. Credit card payments are processed through a third party, ACI Payments, Inc., which charges a fee. Check or money order payments require the correct Form 540-ES voucher for the due date and should be mailed to Franchise Tax Board, PO Box 942867, Sacramento, CA 94267-0008 (FTB).
Mandatory Electronic Payment Thresholds
California’s mandatory e-pay rule can outlast a single tax year. Once you make an estimate or extension payment exceeding $20,000, or file an original return with total tax liability over $80,000, all subsequent payments must be remitted electronically regardless of amount, tax type, or taxable year. The first payment that triggers the requirement does not have to be electronic, but later non-electronic payments can carry a 1% noncompliance penalty (FTB).
California Underpayment Penalty Framework
If required estimated payments are not made, are paid late, or underpay an installment, a penalty may be assessed on the underpaid portion from the installment due date to the date of payment or the return due date, whichever is earlier. The FTB refers taxpayers to Form FTB 5805 for more information (FTB). The instructions also caution that if you do not prepay at least the required worksheet amount, you may owe a penalty for not paying enough estimated tax (FTB).
Behavioral Health Services Tax Worksheet
High-income taxpayers should not forget the Behavioral Health Services Tax worksheet. If taxable income or nonresident California source taxable income is more than $1,000,000, the worksheet applies a 1% rate to the amount above $1,000,000 and the result is entered on the estimated tax worksheet (FTB).
Fourth California Estimated Tax Payment Decision Support
Uncertain whether your California fourth installment should be paid January 15 or replaced by an early January 31 filing? Adham Abadier, CPA, can review your 2026 income, withholding, safe harbor thresholds, and payment history before the final CA estimated payment decision.
📞 (951) 223-1826 | Book a free 30-min diagnostic →
Frequently Asked Questions
What are CA estimated tax payments 2026 and when is the fourth payment due?
CA estimated tax payments 2026 are installment payments of expected California individual tax after credits and withholding. The 2026 schedule is 30% by April 15, 40% by June 15, 0% on September 15, and 30% by January 15, 2027 (FTB).
Is there a California estimated tax payment due September 15, 2026?
California’s third installment is 0% on September 15, 2026, so no California estimated amount is due for that installment under the published schedule (FTB). Federal estimated tax may still have a separate September requirement.
Can I skip the January 15, 2027 California estimated payment?
You can avoid making the fourth installment if you file your 2026 California return by January 31, 2027, and pay the entire balance due. The FTB says you then do not have to make the last estimated payment and will not owe a penalty for the fourth installment (FTB).
What income level removes the prior-year safe harbor for California estimates?
If 2026 California AGI is equal to or greater than $1,000,000, or $500,000 if married/RDP filing separately, estimated tax must be based on the 2026 tax rather than a prior-year amount (FTB).
What is the 110% rule for higher-income California taxpayers?
Taxpayers whose 2025 California AGI is more than $150,000, or $75,000 if married/RDP filing separately, must figure estimated tax using the lesser of 90% of 2026 tax or 110% of 2025 tax including AMT. Farmers and fishermen are exempt from this rule (FTB).
When do I have to pay California estimates electronically?
Once an estimate or extension payment exceeds $20,000, or an original return has total tax liability over $80,000, all later payments must be electronic. A 1% noncompliance penalty can apply to non-electronic payments after the threshold is met (FTB).
How do I check estimated payments already sent to the FTB?
The FTB says to log in or register for MyFTB to view estimated payments received (FTB). This is a practical step before making the fourth payment or filing early.
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Adham Abadier, CPA reviews your 2026 California estimated tax worksheet, safe harbor position, fourth installment amount, and whether filing by January 31 can replace the January 15 payment.
Plan the Final CA Estimated Tax Payments 2026 Move Before January
The 2026 California schedule gives taxpayers a clear but unusual runway: no third installment in September, then a 30% fourth installment on January 15, 2027, unless the full return is filed and paid by January 31, 2027. For Inland Empire business owners, landlords, and self-employed filers, the right next step is to compare year-to-date income, withholding, credits, and prior installments against the Form 540-ES worksheet. If your circumstances involve pass-through income, uneven receipts, or a possible $1 million AGI threshold, the final payment decision deserves a worksheet review rather than an automatic transfer.
Catalyst CPA Corporation helps Moreno Valley, Riverside, Corona, Eastvale, Murrieta, Temecula, Ontario, San Bernardino, Fontana, Orange County, and other California taxpayers with California quarterly tax payments and year-end planning, with remote support nationwide. If you need a second set of eyes on your estimated tax worksheet, payment history, or early-filing option, contact our CPA team at adham@catalyst-cpa.com or call (951) 223-1826. For broader planning, see our year-end planning resources.
About the Author
By Adham Abadier, CPA — California CPA License #158599. QuickBooks Gold ProAdvisor.
Adham helps Moreno Valley and Inland Empire small-business owners, landlords, and self-employed filers with tax planning, preparation, and bookkeeping. He focuses on practical, compliance-first guidance for Inland Empire small business tax needs. Learn more about his practice at Moreno Valley CPA.
Contact: (951) 223-1826 | adham@catalyst-cpa.com
13114 Yellowwood St, Moreno Valley, CA 92553
Disclaimer
This article is for general information only and is not tax, legal, or accounting advice. Consult a qualified professional about your specific facts before making estimated tax decisions.
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