Quick Answer
Yes, most states require quarterly estimated tax payments if you owe $500-$1,000 or more in state taxes (varies by state). 41 states have income tax, and most follow similar quarterly schedules to federal taxes but with different thresholds and payment methods.
Best Answer
James Okafor, Self-Employment Tax Specialist
Best for people learning about both federal and state quarterly tax obligations
State quarterly tax requirements
Most states with income tax require quarterly estimated payments, but the rules vary significantly from federal requirements. While federal law requires payments when you owe $1,000 or more, state thresholds range from $200 to $1,000.
Which states require quarterly payments?
States WITH quarterly estimated tax requirements (41 states + DC):
All states with income tax require some form of estimated payments, including high-tax states like California, New York, and New Jersey.
States with NO state income tax (9 states):
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. If you live in these states, you only need federal quarterly payments.
State-specific thresholds and due dates
Example: California freelancer earning $50,000
Let's say you're a freelance writer in California earning $50,000:
Federal quarterly obligation:
California quarterly obligation:
Total quarterly payment: $2,963 + $700 = $3,663
How to calculate state estimated taxes
Most states provide their own estimated tax forms (like California's Form 540ES or New York's IT-2105). The calculation process is similar to federal:
1. Estimate your annual state taxable income
2. Calculate state income tax using state brackets
3. Subtract any withholding from W-2 jobs
4. Divide remaining liability by 4 quarters
State payment methods
Unlike federal payments (which you can make online at EFTPS.gov), state payment systems vary:
What you should do
1. Check your state's requirements - Look up your state's estimated tax threshold and due dates
2. Get the right forms - Download your state's estimated tax form (usually available on the state revenue department website)
3. Set up separate tracking - Keep state and federal calculations separate to avoid confusion
4. Consider using tax software - Many programs calculate both federal and state estimated taxes together
Use our quarterly estimator tool, which includes state calculations for all 41 states with income tax.
Key takeaway: 41 states require quarterly estimated tax payments with thresholds typically between $300-$1,000. You'll need separate calculations and payments for state and federal taxes, but most states follow the same quarterly schedule.
Key Takeaway: 41 states require quarterly estimated tax payments with thresholds of $300-$1,000, requiring separate calculations from federal taxes but following similar quarterly schedules.
State quarterly estimated tax thresholds for major states
| State | Minimum Threshold | Top Tax Rate | Due Dates |
|---|---|---|---|
| California | $500 | 13.3% | Same as federal |
| New York | $300 | 10.9% | Same as federal |
| Texas | No income tax | 0% | N/A |
| Florida | No income tax | 0% | N/A |
| Illinois | $500 | 4.95% | Same as federal |
| Pennsylvania | $300 | 3.07% | Same as federal |
| New Jersey | $400 | 10.75% | Same as federal |
| Georgia | $500 | 5.75% | Same as federal |
More Perspectives
James Okafor, Self-Employment Tax Specialist
Best for people with W-2 jobs who need to understand state withholding vs. estimated payments
State taxes for W-2 + freelance income
As a side hustler, your state tax situation depends heavily on whether your day job's withholding covers your additional freelance income tax liability.
State withholding vs. estimated payments
Your W-2 employer likely withholds state income tax based on your regular salary, but this might not cover the additional tax from freelance income.
Example: Illinois resident with $60,000 W-2 + $12,000 freelance
Two options for side hustlers
1. Make state quarterly payments - Use your state's estimated tax form
2. Increase W-4 state withholding - Ask your employer to withhold extra state tax
Option 2 is often easier since you avoid managing multiple quarterly payments.
State-specific considerations
Key takeaway: Side hustlers should check if their W-2 state withholding covers additional freelance income, or increase withholding rather than making separate state quarterly payments.
Key Takeaway: Side hustlers can either make state quarterly payments or increase W-4 state withholding to cover additional tax from freelance income.
James Okafor, Self-Employment Tax Specialist
Best for established freelancers dealing with multi-state tax issues
Multi-state quarterly tax complications
Full-time freelancers often work with clients across multiple states, creating complex state tax obligations. You might need to make quarterly payments to several states.
Resident vs. non-resident state taxes
Example: Colorado resident working projects in California and New York
State reciprocity agreements
Some neighboring states have agreements to avoid double taxation:
Tracking multi-state income
Keep detailed records of:
City and local quarterly taxes
Some cities require separate quarterly payments:
Key takeaway: Full-time freelancers may need quarterly payments to multiple states plus their resident state, requiring careful income tracking and separate calculations for each jurisdiction.
Key Takeaway: Full-time freelancers may owe quarterly taxes to multiple states based on where clients are located, requiring separate tracking and payments for each state.
Sources
- IRS Publication 505 — Tax Withholding and Estimated Tax (includes state tax guidance)
- Federation of Tax Administrators — State Tax Forms and Information
Related Questions
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.